Live From E-Retail Fest London - Aggregator Roundtable
Seller Sessions · with John Hefter, David Mood · June 17, 2022 · 49 min
Summary
This episode offers an insider’s look into the fluctuating world of Amazon aggregators, directly from industry leaders. It covers the current challenges and opportunities in acquiring Amazon FBA businesses, including the impact of declining multiples and strategies for effective buyer vetting. Ecommerce operators looking to sell their Amazon business or understand the aggregator landscape will gain crucial insights into market shifts and what to expect in the near future.
Key takeaways
Multiples for Amazon FBA businesses have declined, making it a buyer's market; sellers need to adjust expectations and focus on business quality.
Pausing operations strategically before an acquisition can increase a business's attractiveness and allow for optimization, leading to a better deal.
Thoroughly vet potential buyers beyond the offer price, focusing on their post-acquisition plans and operational expertise to ensure a smooth transition and maximize long-term value.
The volume of high-quality Amazon businesses available for acquisition has decreased, signaling a more competitive environment for aggregators.
Aggregators are prioritizing businesses with strong fundamentals and clear growth potential, shifting away from rapid, less selective acquisitions seen in previous years.
In this episode I host a panel live from E-Retail Fest disccussing all the topics that are hot right now in the space pertaining to what is happening in the world of aggregators. What to expect in the future and how everyone is dealing with everything since the multiples have come down and the rapid changes we are seeing in the last few months. From the current volume of quality Amazon businesses ready to buy verse 12 months ago to why pausing is a good thing and how to vet your buyer effectively. John Hefter Senior Vice President, Founder at Thras.io As a Founder of Thrasio, John has been lucky to witness their original team of four grow into a one thousand person, billion-dollar powerhouse. At work and in life, he's a savant with unrelenting energy and curiosity. He enjoys often deploying his experience in branding, creative, neuroscience marketing, business development, acquisitions, leadership, culture building, and product development across numerous sets of business domains. If there's a challenge met, John can face it overtly with ability, humor, and persistence. David Mood Head of Investments, Olsam. Prior to Olsam, David was an Investment Director at Generation Investment Management, where he was part of the growth equity team focusing on high-growth disruptive consumer and technology companies accelerating the sustainability transition. David started his career at Barclays Capital in London working on cross-border European M&A transactions. He holds an MSc in Finance & Investments from Rotterdam School of Management and BSc in Business Administration from EBS University
What does this episode say about amazon & marketplaces?
Multiples for Amazon FBA businesses have declined, making it a buyer's market; sellers need to adjust expectations and focus on business quality.
What does this episode say about finance & fundraising?
Pausing operations strategically before an acquisition can increase a business's attractiveness and allow for optimization, leading to a better deal.
What does this episode say about founder & leadership?
Thoroughly vet potential buyers beyond the offer price, focusing on their post-acquisition plans and operational expertise to ensure a smooth transition and maximize long-term value.
What does this episode say about supply chain & operations?
The volume of high-quality Amazon businesses available for acquisition has decreased, signaling a more competitive environment for aggregators.
What does this episode say about amazon & marketplaces?
Aggregators are prioritizing businesses with strong fundamentals and clear growth potential, shifting away from rapid, less selective acquisitions seen in previous years.
