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How to exit an eCommerce business at 6X multiples...

Although not as strong as a year ago, we’re still seeing EBITDA multiples of 3.5X and 6X for eCommerce business.


There is a value journey that every brand must take however to reach this:

-If you’re under £1m revenue, and owner-operated…you’ll be lucky to attain 1X to 2X. The potential owner is buying a job, not a business.


-If this is you, your next step is to get beyond £1m. Not for the arbitrary reason most people use the number, but because its usually the point at which you can afford a professional management team.


-At this level you will see multiples of up to 3X. For some this will represent a good enough exit.


-To reach 6X and over, you’ll be gunning for £10m in revenue.


-At this level, from a Private Equity perspective…revenue is stable, you’re professionally managed and you’re scalable.


Happy building...


Do you want to know more?


🟢 𝗦𝗰𝗵𝗲𝗱𝘂𝗹𝗲 𝗮 𝗙𝗥𝗘𝗘 𝟯𝟬-𝗺𝗶𝗻𝘂𝘁𝗲 𝗦𝘁𝗿𝗮𝘁𝗲𝗴𝘆 𝗖𝗮𝗹𝗹: https://lnkd.in/eb-NP2xC

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