This document discusses selling an "FBA business", which refers to a third-party seller's Amazon business. It addresses what an FBA business is worth, who the potential buyers are, and lessons learned from failed deals. The potential buyers are described as corporate dropouts, investors, strategics looking to consolidate, and other consolidators. Examples are given of deals that failed due to issues like being too greedy, lacking proper accounting, having a negative sales trend, or engaging in black hat tactics. An ideal FBA business to sell is described as having 30% diversified product lines, 25% margins, 20% yearly growth over 4 years, an absent owner, and premium brands.

1. SELLING YOUR
“FBA BUSINESS”

2. 2
1. What a my business worth?
2. Who buys my business?
3. Learn from mistake?
OVERVIEW

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• N = 241, R^2 = 0,371
• SDE = seller's discretionary
earnings
(Adjusted EBITDA)
• Largest FBA Deal:
$73 MM,
Multiple: 5.1,
Category: Supplements
WHAT IS AN “FBA BUSINESS” WORTH?
Observation period: Sept 2018 - Aug 2019
Quelle: C&L International LLC, “The FBA Broker”

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4 BUYER TYPES

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Investor IngoCorporate dropout Cobee
Consolidator ConniStrategic Stacy

6. CORPORATE DROPOUT COBEE
6

7. INVESTOR INGO
7

8. STRATEGIC STACY
8

9. CONSOLIDATOR CONNIE
9

10. PLAY BUYERS OFF AGAINST EACH OTHER
10

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5 FAILED DEALS

12. VALLEY OF DEATH
12

13. TOO GREEDY
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14. NO PROPER ACCOUNTING
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15. NEGATIVE TREND
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16. TOO MANY BRANDS
16

17. BLACK HAT
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18. A PERFECT FBA BUSINESS
18
30 % Diversified
25 % Margin on SDE
20 % YoY Growth
4 Years old
Absent owner
Premium brand

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