I am evaluating a DIY-focused ecommerce business with a portfolio of brands doing about ~$13-14M a year in revenue at around 5-6% operating margins. The business is a mix of branded products and third-party products. I have two sets of questions that I'd like to get the groups input on.

1. Besides COGs and labor, there are two major cost drivers, Advertising (8-10% of revenue) and outbound shipping expense (8-10%). I am trying to get a sense on whether costs are in line with industry benchmarks and how much room there is to improve these. Does anyone have experience or data that would support these as levers that can drive near-term EBITDA improvement?

2. How lendable is a business like this. Single owner, business has been in operation for 20+ years. Minimal debt. $500k in real estate assets are included along with ~$2M+ in inventory. How much debt could I get on a deal like this? Would SBA be an option or any other private financing sources that I should consider looking into?

Thanks in advance for any insights or opinions!