In Episode 348 of Acquisitions Anonymous, we dive into a fascinating e-commerce deal: an Amazon FBA health and wellness supplements business. This business generates over $1M in annual EBITDA while operating just 15 hours a week. With its concentrated revenue from three SKUs and heavy reliance on Amazon as a channel, we explore the risks and rewards of acquiring such a focused operation.
🔑 Key Highlights:
- Amazon Dependency: 96% of sales from Amazon, with one SKU accounting for 80% of revenue.
- Growth Opportunities: Potential to expand into retail (GNC interest) and other Amazon markets.
- Seller Financing: Why this business doesn’t qualify for SBA financing and what that means for buyers.
💡 Takeaways:
- The challenge of moving a brand off Amazon.
- The risks of concentration in SKUs and sales channels.
- How buyers can structure deals to mitigate these risks.
👨💻 Sponsors:
Acquisition Lab: Created by Walker Deibel, author of Buy Then Build, Acquisition Lab is the leading accelerator for serious buyers looking to acquire a business. Learn more at AcquisitionLab.com or email Chelsea Wood directly at chelsea@buythenbuild.com.
HoldCo Conference 2025: The premier event for learning how to manage multiple businesses. Join us in Utah next spring at an all-inclusive mountain resort. Visit HoldCoConference.com.
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