Has anyone recently closed an e-commerce deal?

searcher profile

February 08, 2022

by a searcher from University of Toronto - Joseph L. Rotman School of Management in Toronto, ON, Canada

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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commentor profile
Reply by an investor
from Union College in New York, USA
I bought an eComm business Nov###-###-#### There are 2 main issues that I'd like to emphasize (I'm assuming you are evaluating a physical products biz, not content).
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!
commentor profile
Reply by a professional
from Bentley College in Miami, FL, USA
Hey Ash - In case you're ever looking to bring on a 3rd party due diligence provider, take a look at DueDilio.We're an expert network focused on M&A due diligence.We connect business buyers with best-in-class, pre-vetted due diligence service providers.https://www.duedilio.com
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