Fortunet, an ecommerce investment and banking firm, just came out with a very insightful report surveying 42 ecommerce aggregators. The report sheds light on what aggregators really look for in businesses and which things have the most impact on buying multiples.
Joining me today is none other than Fortunet’s Co-Founder and Partner, Yael Cabilly. We’ll be breaking down the report’s Executive Summary, which confirms some visible market trends and also debunks some misconceptions you might have about aggregators.
You can access the full report over on Fortunet’s website.
- Introduction to Fortunet – 0:38
- Which categories aggregators prefer most and which ones they exclude – 3:59
- Why buyers don’t acquire solely wholesale businesses – 11:07
- Aggregators generally require a minimum operating history of one year – 13:17
- Roughly half of aggregators require at least a 15% SDE profit margin – 15:24
- Most aggregators buy businesses with a minimum purchase price of $500K-1M – 16:37
- 90% of aggregators purchase or prefer to purchase the assets only – 18:01
- 61% of aggregators prefer full acquisition – 20:02
- Preferred deal structures – 22:26
- Some buyers offer some equity in the holding company – 24:44
- Most aggregators do not value additional sales channels, they value patents – 25:13
- Most buyers seek to grow the brand (not flip them) – 26:43
I want to thank Yael for taking the time to break down these findings with me. These definitely add value to anyone listening, especially if you’re currently preparing your ecommerce business for sale. If you want to know more about Fortunet and their services, feel free to connect with Yael over on [email protected].
Before we go, don’t forget that our limited-time offer of 50% off EcomCrew Premium ends tonight! If you think that unlimited 1-on-1 email support, a wealth of ecommerce courses and resources, and exclusive expert-led webinars will help you take your business to the next level, head over to ecomcrew.com/premium right now to sign up. Use code: ECOMCREW50 to apply the discount.
Happy selling and we’ll talk to you soon!