Ecomm Breakthrough

How Private Equity is Changing the Game for E-Commerce Valuations with Trever Acers

Nov 26, 2024

01:00:12

Trever is the Founder and one of the Managing Directors of Objective, Investment Banking & Valuation, and is focused solely on the Investment Banking Group, which offers sell-side advisory. Trever has 20+ years of investment banking, acquisition, and strategy experience advising middle market companies on transaction execution and strategy.

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> Here’s a glimpse of what you would learn….

Maximizing business valuation for e-commerce companies.
Current state of the e-commerce acquisition landscape.
Role of private equity in influencing valuations.
Characteristics of attractive e-commerce businesses for buyers.
Importance of sales channel diversification beyond platforms like Amazon.
Trends in specific sectors, such as health and beauty, and their market performance.
Strategies for e-commerce entrepreneurs preparing for a potential sale.
Managing unsolicited acquisition offers and setting clear expectations.
Importance of accurate financial data and comprehensive accounting practices.
Selecting the right advisors for maximizing sale value and navigating the sale process.

In this episode of the Ecomm Breakthrough Podcast, host Josh Hadley interviews Trever Acers, founder and managing director at Objective Middle Market Investment Bank. Trever, with over 20 years of experience in investment banking, shares strategies for e-commerce entrepreneurs to maximize their business valuation. Key insights include understanding target and "sell now" numbers, diversifying sales channels, leveraging customer data, and maintaining a resilient supply chain. Trever also emphasizes the importance of selecting the right advisor and preparing for unsolicited offers. This episode is a must-listen for business owners aiming to scale their companies and achieve a successful exit.

Here are the 3 action items that Josh identified from this episode:

1. Diversify Sales Channels and Products: To attract private equity buyers, ensure your business is not overly reliant on a single sales channel like Amazon. Expanding into wholesale, retail, and direct-to-consumer channels, as well as offering a variety of products, reduces risk and enhances your company's appeal.

2. Prepare Financials and Strategy Well in Advance: Begin preparing for a potential sale at least three years ahead. Clean up financial records, set clear valuation goals, and have a methodology in place to manage unsolicited acquisition offers. This proactive approach ensures you are ready to engage with serious buyers when the time is right.

3. Engage Multiple Buyers and Highlight Synergies: When considering a sale, engage with multiple potential buyers to increase competition and leverage in negotiations. Discuss potential synergies early in the process to demonstrate how your business can add value to the buyer's portfolio, which can justify a higher sale price.

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Episode Sponsor

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This episode is brought to you by eComm Breakthrough Consulting where I help seven-figure e-commerce owners grow to eight figures.

I started Hadley Designs in 2015 and grew it to an eight-figure brand in seven years.

I made mistakes along the way that made the path to eight figures longer. At times I doubted whether our business could even survive and become a real brand. I wish I would have had a guide to help me grow faster and avoid the stumbling blocks.

If you’ve hit a plateau and want to know the next steps to take your business to the next level, then go to www.EcommBreakthrough.com (that’s Ecomm with two M’s) to learn more.

Transcript Area

Josh Hadley 00:00:00 Welcome to the Ecomm Breakthrough podcast. I'm your host, Josh Hadley, where I interview the top business leaders in e-commerce. Past guests include Kevin King, Michael E Gerber, author of The E-myth, and Matt Clark from ASM. Today I am speaking with Trevor Akers. Trevor is the founder and one of the managing directors at Objective Middle Market Investment Bank, and we are going to be talking a lot about how to maximize your business for a premium valuation that will not only help if and when you decide to sell, but to help you stay in business for decades to come. This episode is brought to you by Ecomm Breakthrough, where I specialize in investing in and scaling seven figure e-commerce companies to eight figures and beyond. If you're an ...