Finally, I’ll reveal our list of the top 10 Amazon Aggregators<\/a>, rated by our friends in the FBA community – including over 50 sellers who have already exited their business.<\/p>\n Let\u2019s dive right in:<\/p>\n What Are Amazon Aggregators?<\/a> Amazon Aggregators are businesses that acquire and consolidate small private label brands selling on Amazon<\/a>. Their goal is to scale and integrate each brand into their larger organization.<\/p>\n FBA Aggregators trade almost exclusively online and own a vast array of products in different niches and geographical markets.<\/p>\n Think of them a bit like Proctor and Gamble.<\/p>\n Only an online version.<\/p>\n Most small FBA brands are bought by Aggregators for a 3-6 times multiple of their annual pre-tax profits.<\/p>\n But consider this:<\/p>\n Once operations have been consolidated and refined, FBA Aggregators can achieve a 20+ times multiple by selling the combined (or aggregated) brands to a larger company or by seeking an Initial Public Offering (IPO).<\/p>\n Pretty lucrative, huh?<\/p>\n Yes, but here\u2019s the brutal truth:<\/p>\n There are way too many people in our industry that underestimate the job of scaling multiple brands, particularly when you’re predominately selling through Amazon FBA.<\/p>\n Certain established (and hugely successful) Amazon sellers we know have tried more than once – and failed miserably.<\/p>\n Amazon FBA Aggregators are experts in the complex field of brand consolidation and, as far as we’re concerned, deserve every single cent of profit should they opt for an exit or IPO.<\/p>\n Bottom line:<\/p>\n For Richard, myself, and the many other post-exit sellers we have spoken to, a 3-6 times multiple was more than enough to exit the Amazon game for the time being, and enjoy a bit of much-needed downtime.<\/p>\n That being said.<\/p>\n If your business is booming you can, incidentally, achieve a much higher multiple than the 3-6 times average.<\/p>\n But more about that later.<\/p>\n Buyers look for different things in a business. When people hear that we sold our Amazon businesses<\/a> in less than 2 months, they inevitably want to know more.<\/p>\n Simply put:<\/p>\n No matter what you read in the mainstream media, Amazon sellers have never<\/span> been more motivated to exit their business.<\/p>\n We know this first hand based on our hundreds of conversations with sellers, as well as our recent survey<\/a> on the topic.<\/p>\n The question is:<\/p>\n How do YOU start the process of exiting your business<\/a> without losing focus on the things that made it profitable in the first place?<\/p>\n As white-label sellers with a small number of skeleton staff, this is something that Richard and I both thought that we would struggle with.<\/p>\n The good news for you, however, is that we have covered this question – and many others – in our faq<\/a> section.<\/p>\n And the best part?<\/p>\n Despite our reservations, the process of selling to an Amazon Aggregator was quick, simple, and on the whole, painless.<\/p>\n It starts, of course, with a simple willingness to dedicate some time to prepare your business, get your financials in place, and – most importantly – engage the right advice.<\/p>\n You can read all about our experience here<\/a>.<\/p>\n Buyers look for different things in a business. \u201cMultiple\u201d is the most-used buzzword in the world of Amazon exits.<\/p>\n It’s a term used to derive the value of a business based on a multiplication (or multiple) of your annual profits.<\/p>\n And for 90% of the Amazon sellers we talk to, it’s the number one thing they obsess over.<\/p>\n But here\u2019s the kicker:<\/p>\n The multiple you receive for your business is ultimately irrelevant.<\/p>\n Why?<\/p>\n Because the annual profit figure used in a ‘multiple’ calculation can be any one of several different line items in your P&L.<\/p>\n To put that another way:<\/p>\n Whilst some FBA Aggregators might use (say) annual gross profit to calculate your multiple, others might prefer net profit, SDE (Seller’s Discretionary Earnings), EBITDA<\/a> (Earnings Before Interest, Taxes, Depreciation, and Amortization), or a combination of each.<\/p>\n In short:<\/p>\n What really<\/em> matters is the total (or absolute) valuation in dollar terms, not what formula has been applied to your numbers to arrive at an offer.<\/p>\nContents<\/h3>\n
\nHow We Sold Our FBA Businesses<\/a>
\nWho Gives The Best Valuations?<\/a>
\nAssets Deals Versus Share Deals<\/a>
\nThe Step by Step Sales Process<\/a>
\n5 Ways To Prepare For A Sale<\/a>
\nHow To Maximize Your Valuation<\/a>
\nTop 10 Amazon Aggregators<\/a><\/p>\nWhat Are Amazon Aggregators?<\/h3>\n
![\"Amazon](\"https:\/\/www.ecommerceaggregators.com\/wp-content\/uploads\/2022\/03\/Amazon-Aggregators.png\")
<\/p>\nAggregator acquisitions<\/span><\/h5>\n
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\nClick to compare 150+ Amazon Aggregators to secure your highest offer.<\/em><\/p>\n
\nHow We Sold Our FBA Businesses<\/h3>\n
![\"Amazon](\"https:\/\/www.ecommerceaggregators.com\/wp-content\/uploads\/2022\/03\/Sold.png\")
<\/p>\n
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\nClick to compare 150+ Amazon Aggregators to secure your highest offer.<\/em><\/p>\n
\nWho Gives The Best Valuations?<\/h3>\n
![\"Amazon](\"https:\/\/www.ecommerceaggregators.com\/wp-content\/uploads\/2022\/03\/Multiple.png\")
<\/p>\nFocus 100% on this<\/h5>\n