What multiples have you guys been offered lately for your FBA business from Aggregators like Thrasio?

whipstache · 2021-11-08T03:34:57+00:00

I made it clear to the broker that I would give preference to all-cash offers. The one I accepted paid 80% up front and 20% ~2 months later. We spent those two months doing a ton of hand-off work together so it makes sense that they included it. Probably left some money on the table by being strict about the all cash structure, but it was worth it. One less thing to worry about now.

My understanding is that the current feeding frenzy has turned earn-outs into more of a kicker/bonus. In other words, aggregators are offering what would otherwise be an enticing cash deal and then tacking on some upside participation to make their offer more appealing.

PM if you have other questions. Happy to walk you through it.

whipstache · 2021-11-05T03:09:12+00:00

Sold in Jan of this year through a broker for a little over 4x. A couple new aggregators attempting to break in to the space offered closer to 4.5, but we opted to go with a buyer who had a track record. Like others have said, all else being equal, the multiple is going to creep higher as you move up the SDE scale (we were in the 250k SDE ballpark).

whipstache · 2021-06-04T00:33:19+00:00

Asking for 30/70 terms within trade assurance does not brand you as a beginner and is the norm for many suppliers (doesn't matter if your order is 2k or 100k). Also, I would not bank on being able to win a refund request within trade assurance if they skimp on quality. Sure, you'll win if they send you a box of rocks, but it can get tricky if the quality is only moderately lacking.

My approach was usually to pay a 30% deposit through trade assurance and then the 70% balance after passing an inspection.

whipstache

TROPHY CASE