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50/100· Fair Demo Listing

Direct-to-Consumer Outdoor Gear Brand

Remote, Colorado, USA E-commerce Established 2017 4 employees

Business VerifiedTraffic Verified

Asking price

$540,000

WhatBiz estimated range $424,000 – $667,000

Analyze this deal

Business overview

The brand has an established catalogue and repeat customer base. Revenue declined modestly in the last year as paid acquisition costs rose, which is reflected in the asking price.

Asking price
$540,000
Revenue (TTM)
$1,900,000
SDE
$185,000
EBITDA
$168,000
SDE multiple
2.92x
Cash-on-cash (unlevered)
34.3%
Recurring revenue
12.0%
Largest customer
3.0%

WhatBiz Score™ breakdown

Overall 50/100 — Fair. Each dimension is scored independently and weighted.

Profitability22

Seller's discretionary earnings are 9.7% of revenue.

Valuation60

Asking price is 2.92× SDE compared with a common small-business range of roughly 2×–4×.

Financial Health34

9 years of operating history with a 8.8% earnings margin.

Growth Potential17

Reported revenue trend of -4% year over year.

Market Outlook58

Category-level demand outlook based on WhatBiz industry model (sample data).

Owner Independence60

Business is described as semi absentee with 4 employees.

Customer Concentration Risk100

Largest customer represents about 3% of revenue.

Financing Potential100

No financing indicated by the seller.

Scalability15

12% of revenue is recurring or contracted.

AI / Technology Disruption Risk50

Estimated exposure to automation and AI substitution in this category.

Valuation context

Comparable SDE multiples of 2.17x – 3.35x for E-commerce produce an estimated range of $424,000 – $667,000.

  • Recurring revenue: 12% recurring revenue is around or below category norms.
  • Declining revenue: Revenue trending -4% pulls the multiple down.
  • Management in place: A business that runs without daily owner labour is worth more to most buyers.
What's included
  • Brand and trademarks
  • Inventory at 3PL
  • Supplier relationships
  • Email list and content
Growth opportunities
  • Rebuild retention email and SMS flows
  • Expand wholesale into specialty retailers
  • Rationalize low-margin SKUs
Reason for sale
Owner is consolidating into a different brand portfolio.
Competition
Highly competitive DTC category with rising acquisition costs.

What a buyer should check here

Specific questions to raise with the seller for this listing, based on its reported figures.

  1. Confirm the $185,000 in owner earnings

    Ask for three years of tax returns and the add-back schedule line by line. Owner salary and genuine one-off costs are fair add-backs; ongoing vehicle, phone, insurance or family payroll usually are not.

  2. Price is inside the estimated range (2.92x SDE)

    WhatBiz estimates $424,000 – $667,000 for a e-commerce business with these figures. Ask the seller which comparable sales support their asking price.

  3. Verify the customer mix is as diversified as reported

    The largest customer is reported at 3.0% of revenue. Ask for a revenue-by-customer report for the last 24 months to confirm it.

  4. Recurring revenue is only 12.0%

    Most of the revenue has to be re-won each period. Ask how leads are generated today and how much of that depends on the owner personally.

  5. Plan for the owner's day-to-day role

    The owner is reported as semi-absentee. Price a replacement salary for the hours they work, and check whether any licence, certification or key relationship is held personally.

  6. Check the 4-person team and payroll

    Request tenure, wages against local market rates, and any certification or licence held by individual staff. Agree stay bonuses for key people before closing, not after.

  7. No seller financing is offered

    You will need to fund the full price with cash and lender debt. Confirm the earnings support debt service before you make an offer — the deal analyzer runs that calculation.

  8. Review the not-applicable premises and the lease

    Check remaining term, renewal options, rent escalations, and whether the landlord will assign the lease to you. A short lease on a location-dependent business is a real risk.

This is demo data provided for product demonstration. Figures are illustrative, are not verified, and are not an offer to sell a business. WhatBiz analysis is educational and is not financial, legal, tax or investment advice.

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