Hi everyone, Our team has just engaged a potential target in the low-mid market e-commerce space. I'm looking for any insights into more recent deals where someone can share high level discussion points on anticipated valuation/multiple ranges, the competitive landscape, any financing challenges, and other high-level challenges. Thanks.
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1. Your revenue can be volatile. You read about it sure, but it's real. So be mindful of where you traffic/revenue is coming from. One tweek of the google algo, or an Amazon error can have huge impacts.
2. Be very mindful of the location of the inventory. W.I.P., transport, at a 3PL, in the sellers garage, etc. The logistics costs related to moving inventory is REAL, especially now. Warehousing, pick n pack, LTL transport, packaging, barcoding, customs fees, all of it. I think it's under appreciated in the eComm acquisition space. (at least it was be me, ha).
Good luck!