Industry Focus · E-commerce
Selling an e-commerce business?
We help founders of Australian e-commerce businesses prepare for a sale and run it. Many who built brands between 2014 and 2020 are reaching a natural exit point, and buyers have become far more selective.
01 · Coverage
Sectors we serve.
We work across the online categories where Australian operators have built a strong position.
- Direct-to-consumer brands
- Amazon and marketplace sellers
- Shopify businesses
- Subscription and B2B e-commerce
- Multi-channel and cross-border retail
- Health, beauty and supplements
- Apparel, lifestyle and home goods
- Pet products
By the numbers · Indicative
12 – 24mo
Typical earn-out length
7 – 12yr
When founders typically look to exit
90%
Reliance on one channel that buyers discount
02 · Market dynamics
What's driving M&A right now.
- Founders reaching their exit window. First-generation brand founders are at the 7 to 12 year mark.
- Selective aggregators. Aggregator funds are buying more carefully, and paying up for category leaders.
- Trade and overseas buyers. Established retailers, and US, UK and European buyers, want Australian online brands.
03 · Value drivers
What buyers pay for.
Owners assume buyers pay for revenue or "the brand". They pay for a specific set of measurable things.
- Repeat customers and lifetime value
- Customers you reach directly, away from marketplaces
- Brand and product IP you can protect
- Margin that lasts
A healthy mix beats 90% Amazon.”
04 · Mechanics
How deals are structured, and what catches founders out.
This is where most e-commerce deals lose value, and where careful structuring wins it back.
- Earn-outs are heavily used. They run 12 to 24 months, because online results move around.
- Stock and ad spend are negotiated. Inventory, stock in transit and unpaid ad spend all count at handover.
- Founders usually stay on. Expect 12 to 18 months after completion.
Profit inflated by unsustainable ad spend is the most common trap we see, and the one buyers find first.
- Inflated profit. Unsustainable ad spend or one-off promotions flatter the numbers.
- Single-platform risk. An Amazon ban or an algorithm change can hit revenue overnight.
- Trademark gaps. Priority overseas markets need to be covered before you go to market.
Other industries we focus on
Selling in e-commerce?
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