Highly profitable Amazon-native consumer brand portfolio across European markets, delivering $24.2M TTM revenue and 11% EBITDA margin with scalable growth.
Ecommercelargefor salefood-and-drinkvia Flippa
AI deal memo
What it is
Amazon-native food & drink brand portfolio operating across European markets. The business comprises multiple SKUs sold primarily through Amazon's platform, generating $24.2M in TTM revenue with reported 11% EBITDA margin ($2.66M).
The numbers
Monthly revenue of $1.85M, monthly net profit $199K. Asking price $18.7M represents a 7.85x multiple on annual profit—191% above the median comp multiple of 2.7x (range 1.4–3.6x across 56 similar deals). At face value, the 11% EBITDA margin is healthy for consumer goods, but unaudited financials and the extreme valuation premium demand verification.
Trajectory
No traffic, growth rate, or momentum data provided. Cannot assess whether this portfolio is accelerating, plateauing, or declining. This is a critical gap for a $18.7M acquisition.
Valuation
Massively overpriced relative to comps. At 2.7x multiple (market median), fair value would be ~$6.5M–$8.8M. The 7.85x ask suggests either (a) seller expects strong growth not yet reflected in TTM numbers, (b) undisclosed synergies/IP, or (c) inflated profit claims. Treat asking price as a negotiation floor, not justified valuation.
How to approach
Demand 24-month monthly P&L breakdowns, unit economics by SKU, and verified Amazon Seller Central reports (orders, refunds, chargebacks, account health). Clarify what "Amazon-native portfolio" means—is this 1 brand, 5 brands, or a wholesaler model? Confirm whether all revenue flows through Amazon or if there are direct DTC/B2B channels. Run a hard audit of COGS, fulfillment costs, and attributed ad spend before engaging further.
Due diligence
- Hero SKU Concentration | Verify: "Provide revenue breakdown across your top 5 products for the last 12 months." | Red flag: One product >80% of revenue. Amazon category trends (e.g., seasonal food items) can collapse overnight, and competitor clones are a constant threat in food & drink.
- Refund/Chargeback Rate | Verify: "What is your 12-month return/refund rate and primary reason, plus your chargeback rate reported by Amazon?" | Red flag: Food & drink typically sees 5–8% returns; >10% signals quality, packaging, or freshness issues. High chargebacks risk Amazon account suspension.
- Channel Dependency | Verify: "What percentage of revenue comes from Amazon FBA vs. Fulfilled by Merchant vs. any non-Amazon channels?" | Red flag: 95%+ from Amazon creates existential risk. Amazon can terminate accounts, change fees, or delist products without recourse. Portfolio should be diversified.
- Supplier Exclusivity/IP | Verify: "Do you own the formulations, recipes, packaging designs, or molds? Are suppliers contractually locked in, or can they sell to competitors?" | Red flag: If suppliers own tooling or can white-label to rivals, the brand has no defensibility. Food & drink is often a commodity play with thin moats.
- Accounting Cleanliness | Verify: "Are financials cash or accrual basis? Who is your accountant, and are any personal or non-business expenses co-mingled in the P&L?" | Red flag: Unaudited seller financials in a $18.7M deal are unacceptable. Demand independent review; assume stated EBITDA is overstated by 15–30% until proven otherwise.
- Product Lifecycle | Verify: "Is this portfolio of products seasonal, trending, or evergreen? What is your product development roadmap for the next 18 months?" | Red flag: Many food & drink items are fad-driven or seasonal. If the category is visibly peaking, growth is behind you, not ahead. Verify this is not a momentum play at the top of a trend curve.
Asking price
$18,700,000
Monthly net
$198,611
Multiple
7.8x
Estimated valuation vs comps
Asking 7.8x annual profit. Comparable Ecommerce this size sell around 2.7x (1.4 to 3.6x, 56 comps). Priced 191% above the median.
Key facts
- Monthly revenue
- $1,848,611
- Monthly profit
- $198,611
- Sale method
- classified
- Industry
- food-and-drink
- Seller location
- United States
- Established
- Dec 31, 2019
Summary
Highly profitable Amazon-native consumer brand portfolio across European markets, delivering $24.2M TTM revenue and 11% EBITDA margin with scalable growth.
Traffic, trend, size, and valuation figures here are estimates, not verified by the seller. Always do your own diligence before reaching out or making an offer.