Are Investors Still Buying Businesses Post Pandemic with M&A Expert Ismael Wrixen from FE International
Firing The Man · with Ismael Wrixen · October 18, 2022 · 47 min
Summary
Even in a challenging market, investors are still actively acquiring e-commerce businesses. This episode with M&A expert Ismael Wrixen from FE International breaks down current market trends, what buyers are looking for, and how businesses can position themselves for a successful sale. Learn how to mitigate risks, diversify sales channels, and understand valuation models to attract serious buyers and achieve higher multiples.
Key takeaways
Deals are taking longer to close due to increased due diligence and limited capital access; sellers need to prepare for a more thorough process.
Businesses that have successfully diversified sales channels beyond a single platform (e.g., exclusively Amazon) and optimized customer acquisition costs are more attractive to buyers and command higher valuations.
Aggregators are losing relevance as private equity and institutional capital re-enter the market; focus on building a robust business with strong fundamentals rather than relying on quick aggregator exits.
Valuations are determined by multiple models, taking into account past performance and market trends; understand these models to better position your business for sale.
Focus on resilient business models that can withstand economic downturns, emphasizing diversified revenue streams and efficient advertising spend to attract buyer interest.
Ismael is the Executive Chairman of FE International, the market leader in the sale of SaaS, E-commerce, and Content businesses. Over the past decade, Wrixen has overseen 1000+ successful acquisitions totaling more than half a billion dollars in value. Wrixen was also a (NACVA) 2018 40 Under 40 Award winner. Wrixen’s previous background was in large-cap M&A investment banking, where he executed several high-profile public deals, namely in the technology sector. Founded in 2010, FE Interna...
What does this episode say about finance & fundraising?
Deals are taking longer to close due to increased due diligence and limited capital access; sellers need to prepare for a more thorough process.
What does this episode say about founder & leadership?
Businesses that have successfully diversified sales channels beyond a single platform (e.g., exclusively Amazon) and optimized customer acquisition costs are more attractive to buyers and command higher valuations.
What does this episode say about dtc strategy?
Aggregators are losing relevance as private equity and institutional capital re-enter the market; focus on building a robust business with strong fundamentals rather than relying on quick aggregator exits.
What does this episode say about amazon & marketplaces?
Valuations are determined by multiple models, taking into account past performance and market trends; understand these models to better position your business for sale.
What does this episode say about finance & fundraising?
Focus on resilient business models that can withstand economic downturns, emphasizing diversified revenue streams and efficient advertising spend to attract buyer interest.
