Lore

Minimum Deal Size for Buyer Interest (Amazon Brand Sales)

Thresholds

• Deals under roughly $1M in sales struggle to interest large buyers: diligence and legal fees aren't justified by the added profit at that size. Sellers this small should target experienced e-commerce operators rather than institutional buyers.
• Real strategic-buyer interest realistically starts around $1M in net profit, with some strategic interest possible from about $500K net profit.
• Brands around $5-10M in sales or $1-2M net profit are large enough to credibly pitch strategic buyers.

Risk discount

Larger, data-backed brands with strong ratings/rank history are seen as lower risk by buyers and command better multiples; smaller or younger brands face a risk discount independent of their raw financials. This interacts with the Buyer 'Green Light' Valuation Framework.

Из тем: Selling the Brand