E-commerce acquisitions are high-information, high-risk transactions. Revenue is easy to fake in screenshots but hard to fake in API data. We verify every number at source — and assess the platform, supplier, and brand risk that most buyers miss.
Each model has different valuation drivers, risks, and diligence requirements.
Direct-to-consumer brand with owned email list, repeat purchase rate, and brand equity. Best value when customer acquisition cost is declining and LTV is rising.
Strong signals to look for:
Platform concentration on Meta/Google ads
Fulfillment-by-Amazon seller with established ASIN rankings and reviews. Highly scalable and location-independent but at risk of Amazon policy changes.
Strong signals to look for:
Account suspension risk; review manipulation history
Recurring subscription box, consumable subscription, or DTC + subscription hybrid. Highest-multiple model due to predictable MRR.
Strong signals to look for:
Churn acceleration post-acquisition if brand is personality-dependent
B2B-focused e-commerce serving retailers or trade buyers. Lower margin than DTC but stickier revenue and larger order sizes.
Strong signals to look for:
Key account concentration; trade terms pressure
Standard financial diligence misses the most important e-commerce risks. These are non-negotiable verifications.
Book a complimentary 30-minute call with Ali Sedighi, MBA. We will assess your e-commerce acquisition criteria, budget, and operating model — and advise on realistic targets in the Canadian and global market.