Andrew Faris, former CEO of ecommerce aggregator 4x400 and growth strategist at Common Thread Collective, shares his perspective on the often-misunderstood world of ecommerce aggregators. This episode cuts through the noise, offering a realistic view of how aggregators operate and the strategic value they can bring to brands looking for an exit or growth capital. For ecommerce operators, it clarifies whether an aggregator model could be a viable path for their business.
Key takeaways
Aggregators aren't just for struggling brands; they can be a strategic exit for successful businesses looking to scale or for founders ready to move on.
Understand the specific criteria and operational models of different aggregators, as they vary widely in their investment thesis and post-acquisition strategy.
Due diligence on an aggregator should extend beyond financial terms to include their operational expertise, brand building capabilities, and long-term vision for acquired brands.
For brands considering an aggregator, focus on building robust, defensible assets and clear operational efficiencies to maximize your acquisition value.
Aggregators can provide operational leverage, shared services, and capital infusion that individual DTC brands often struggle to achieve independently.
Kelsey Lehrich is the co-founder and CEO of 365 Holdings, an aggregator that currently has nine brands in their portfolio. Which gives Andrew a chance to revisit one of his favorite questions: is the aggregator model broken, or was Andrew just a poor leader of it at 4x400?
Kelcey’s business is very much not broken, and that means there’s lots to explore about what makes it work and what others can learn from it.
EPISODE HIGHLIGHTS [02:34] About 365 Holdings [06:25] Keeping the portfolio vs focusing on just your players [13:12] Selling entities vs individual businesses [22:51] What percentage of your revenue is in Opex? [26:46] What makes a good e-commerce business? [29:30] The types of businesses that have ongoing demand [34:47] How to make a good business better FOLLOW UP WITH KELCEY:
Follow Kelcey on Twitter: @kelceylehrich
Sell Kelcey your business: https://365-holdings.com
Go to HoldCo Conf: https://holdcoconf.com
FOLLOW UP WITH ANDREW
Follow Andrew on Twitter: @andrewjfaris
Email Andrew: podcast@ajfgrowth.com
Work with Andrew: www.ajfgrowth.com
EPISODE MUSIC
Music Intro: "Tell Me Mama" by The Devious Means
Music Outro: "Rusty Little Scissors" by The Devious Means
What does this episode say about finance & fundraising?
Aggregators aren't just for struggling brands; they can be a strategic exit for successful businesses looking to scale or for founders ready to move on.
What does this episode say about founder & leadership?
Understand the specific criteria and operational models of different aggregators, as they vary widely in their investment thesis and post-acquisition strategy.
What does this episode say about dtc strategy?
Due diligence on an aggregator should extend beyond financial terms to include their operational expertise, brand building capabilities, and long-term vision for acquired brands.
What does this episode say about finance & fundraising?
For brands considering an aggregator, focus on building robust, defensible assets and clear operational efficiencies to maximize your acquisition value.
What does this episode say about finance & fundraising?
Aggregators can provide operational leverage, shared services, and capital infusion that individual DTC brands often struggle to achieve independently.
