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If it was SaaS or even licensed software, absolutely. Multiples on earnings are really low for FBA and similar e-commerce businesses, though. 2-4x earnings (ear
by troydavis 6y ago
If it was SaaS or even licensed software, absolutely. Multiples on earnings are really low for FBA and similar e-commerce businesses, though. 2-4x earnings (earnings, not revenue) is typical (more: https://www.digitalcommerce360.com/2020/12/23/why-now-is-a-great-time-for-amazon-sellers-to-sell-their-business/ https://www.digitalcommerce360.com/2020/12/23/why-now-is-a-g..., https://feinternational.com/blog/how-to-sell-an-amazon-fba-business/ https://feinternational.com/blog/how-to-sell-an-amazon-fba-b...).
Unless there's something truly unique - like they're creating and manufacturing products based on their own IP, or have a large share of a market that itself is growing - roughly 3x earnings is typical. In this case, 3x would be about $10 million. A banker might take your call, but that's still too small to really be worth their effort.
Also, the prospective buyers of bigger FBA-style businesses like this one are already interacting with the brokers/marketplaces I mentioned. It's unlikely that someone who has never owned an FBA business is going to just jump in. It's sort of a self-contained community. Some examples: https://www.webretailer.com/b/thrasio/ https://www.webretailer.com/b/thrasio/, https://quietlight.com/101-fba-businesses/ https://quietlight.com/101-fba-businesses/. Of course, a banker could approach these prospects, but I don't know how they'd increase valuation by more than their fee.