E-Commerce Valuation

E-commerce Business Valuation Services

Understand the factors that drive a higher valuation.

Explore Your Valuation

Our Credentials

E-Commerce Value Drivers

What Drives E-commerce Business Value?

Ecommerce companies range from niche products sold on Fulfillment By Amazon, to specialized consumer or B2B products distributed through a private company’s own capabilities.

An ecommerce with a great multiple & valuation will have:

  • Reliable and steady sales
  • A firm grasp on key performance metrics
  • A defensive mot built against competitors, imitation products, and larger players that can squeeze margins
  • Consistent effort and passion for search engine optimization
  • Clean financial statements and data (standard operating accounting practices for measuring EBITDA, inventory, etc).
Advisor reviewing documents with a client

Buyer Appeal

Key Factors That Drive E-Commerce Value

E-Commerce business valuations factors that attract multiple buyers and competitive bids will have:

  • Data reporting showing in-depth web traffic, customer behavior, & financial performance
  • Modern systems, tools, analytics, & processes
  • Dedication to continuous improvement
  • Consistent effort and passion for search engine optimization
  • A management team empowered to lead without the founders/owners

Performance Metrics

Key Metrics That
Drive a Higher
Valuation Multiple

Key metrics and key performance indicators that maximize a valuation to the higher range multiple include:

  • Customer acquisition costs, retention rate, churn rate, lifetime value
  • Recurring revenue, average order value, net promoter score, subscription rate
  • Inventory turns, abandonment, return, refund rate
  • Consistent effort and passion for search engine optimization
  • Reporting frequency and process to make improvements
Business owners discussing key metrics

Why Get a Valuation

Top 3 Benefits of an
E-Commerce Business Valuation

Top 3 Benefits of getting an Ecommerce Business Valuation (even if you aren’t ready to sell!):

  1. [01]

    Understand where your company stands today in terms of comparable ecommerce companies sold and market trends, clean up key areas now so that you can be opportunistic on when to sell.

  2. [02]

    Solidify your company’s strengths, identify the weaknesses potential buyers would use to sway their offer up and down from the median multiple & valuation range.

  3. [03]

    Partner buy-outs or succession plans for closely held, family owned, private ecommerce companies are common, don’t let an equity holder road bump turn into a roadblock when it comes time for one of the owners to cash-out.

Report Options

E-commerce Business Valuation Report Options

Reports differ on your need and use case:

Broker's opinion of value report

Broker’s Opinion of Value

Receiving an Opinion of value is ideal for exit planning, succession planning, wealth management planning. This is our main offering, and is used to determine a likely Sales Price on a business. This is performed by one of our Ecommerce business experts holding an MBA, CBI or NAVCA certification.

Certified business valuation report

Certified Business Valuation

Or a Conclusion of Value is performed by our NACVA Analyst. This is ideal for Tax Reporting, Shareholder Dispute, Compliance, and Legal Proceedings(i.e. Divorce, Trust, Estate) where the valuation may be evidence in an arbitration or court proceeding. This is only performed by our NAVCA Valuation Analysts.

Valuation Deliverables

With either valuation offering, you’ll receive

With either valuation offering, you’ll receive:

  • The Fair Market Value of your business (what your business will likely sell for out on the Open Market)
  • The ‘Net-to-You’–what cash you will receive at the end of the transaction (more important than the Fair Market Value!)
  • What expenses can be considered ‘add-backs’ (items that ultimately increase your valuation)
  • What like-kind companies have sold for in the past
  • Why methods for valuation are commonly used in your industry, and how they apply to you
  • What value drivers help and hurt your business value
  • Ways to grow the value of your business

Ready to Learn the Whole Company Sale Process End to End?

Lets Talk
Certified business valuation report

From Value to Exit

Preparing the Company for Sale Starts With a Clear Exit Objective

An ecommerce business valuation is the starting point, preparing the company for sale is the journey and meeting your exit objectives is the goal.

Start Conversation
  • Phil Brzytwa

    Phil brzytwa

    M&A Intermediary

  • Keith Rogstad

    Keith rogstad

    MBA, AVA · Business Valuation Analyst

  • Kara Gibson Brzytwa

    Kara Gibson Brzytwa

    MBA, CBI · Managing Principal

  • Corey Gregg

    Corey Gregg

    CBI, CM&AP · M&A Intermediary

  • Blake Foster

    Blake Foster

    CVA · Certified Valuation Analyst

  • Heather Schmidt

    Heather schmidt

    CEPA · M&A Advisor

Testimonials

What Our Clients Say

In their own words — business owners, buyers, and referral partners who've worked with Exit Equity.

We were so pleased with not only the support and offers that were presented by your group, but the support and backing we had all through the purchase program and sale program. Not only did we feel the importance that your group put behind every step, but we enjoyed your company, sense of humor and help in celebrating when the sale was complete. Thank you again for all of your help and after-market support.

— Gary and Stephani Crawford

Former Owners of CITC Fx and Bird Buffer

“We recently sold our business through Exit Equity and the experience was smooth and carefully coordinated and documented. The transaction included a manufacturing operation and real estate and required careful attention to detail and a focus on the final objective. We had a great experience and can recommend Exit Equity. Loving retirement!”

— Dave McLeod

Former Owners of American Spray Technologies

We were so pleased with not only the support and offers that were presented by your group, but the support and backing we had all through the purchase program and sale program. Not only did we feel the importance that your group put behind every step, but we enjoyed your company, sense of humor and help in celebrating when the sale was complete. Thank you again for all of your help and after-market support.

— Gary and Stephani Crawford

Former Owners of CITC Fx and Bird Buffer

“We recently sold our business through Exit Equity and the experience was smooth and carefully coordinated and documented. The transaction included a manufacturing operation and real estate and required careful attention to detail and a focus on the final objective. We had a great experience and can recommend Exit Equity. Loving retirement!”

— Dave McLeod

Former Owners of American Spray Technologies

We were so pleased with not only the support and offers that were presented by your group, but the support and backing we had all through the purchase program and sale program. Not only did we feel the importance that your group put behind every step, but we enjoyed your company, sense of humor and help in celebrating when the sale was complete. Thank you again for all of your help and after-market support.

— Gary and Stephani Crawford

Former Owners of CITC Fx and Bird Buffer

“We recently sold our business through Exit Equity and the experience was smooth and carefully coordinated and documented. The transaction included a manufacturing operation and real estate and required careful attention to detail and a focus on the final objective. We had a great experience and can recommend Exit Equity. Loving retirement!”

— Dave McLeod

Former Owners of American Spray Technologies

What Happens Next

Take the Next Steps

Book a Consultation
  1. [01]

    Consultation

    Free and confidential consultation to determine what type of valuation is needed, price and process.

  2. [02]

    Information

    Provide needed information to analyst - both quantitative and qualitative.

  3. [03]

    Business Review

    1-2 informational meetings to understand your business and value drivers.

  4. [04]

    Valuation Presentation

    Meet with your EEQ Expert for a 60-90 minute valuation presentation - a time to ask questions, identify actions and next steps based off your goals.

Book a Consultation

FAQ

Clarity Before Your Next Move

We've guided hundreds of business owners through the sale process. Here are the questions we hear most often at the start of a conversation.

[01]

A valuation shows what your online business is worth today, which drivers support that number and what to improve before you sell, raise capital or bring in partners.

[02]

It depends on your category, size and growth, but healthy e-commerce brands typically show stable, repeatable EBITDA margins backed by clean financials and diversified traffic sources.

[03]

Multiples vary with revenue quality, growth, customer concentration and channel risk. We benchmark your business against comparable e-commerce transactions to give you a realistic range.

[04]

Consultation, information gathering, a business review with our analyst and a valuation presentation where we walk you through the findings and next steps.

[05]

Strengthen recurring revenue, document your key metrics, reduce dependence on a single channel or supplier and build a team that can run the business without the owner.

[06]

Experienced advisors know how buyers evaluate online businesses, normalize your earnings correctly and help you avoid leaving value on the table.

[07]

We offer a Broker’s Opinion of Value for planning and pricing decisions, and a Certified Business Valuation prepared by our NACVA credentialed analysts for tax, legal and compliance purposes.