Help selling Amazon component of medical supply business

searcher profile

March 24, 2022

by a searcher from Harvard University - Harvard Business School in Fort Wayne, IN, USA

I have a friend who is interested in selling off the Amazon portion of their Medical supply business (~$7-8m in rev) but retaining the rest of his wholesale / direct sale / manufacturing business (~$18m) as well as a supply contract with the Amazon business line. Business produces about $3.5m in EBITDA combined.

The Amazon side has grown well, but he’s an older guy that acknowledges it’s not his strength and wants to get back to focusing on the other side of the business.

Would love to get some crowd led wisdom on the best path forward. Thoughts? Broker recommendations? Should he just sell the whole thing? I’m guessing someone in this network has seen or done something similar.

Thanks!

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commentor profile
Reply by a searcher
from Babson College in Raleigh, NC, USA
Is the Amazon portion FBA or seller fulfilled? Whether or not he should sell one or all portions of the busines is largely a personal decision, but it would depend upon the components he wants to offload. Besides selling either portion, there may be a third option that would allow him to still retain the majority of the business while paying a small portion of revenue as a management fee in exchange for running the business. I've run FBA businesses in the past, so feel free to reach out if you have any further questions.
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Reply by an investor
from New York University in New York, NY, USA
I know some guys that do this - will send you a message with details
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