![]() ![]() It’s important to understand this distinction to secure the maximum value from an M&A transaction. Once more, the top-quartile deals are being pursued by private equity and corporate strategic acquirers. Additionally, these investors pay premium multiples. New entrants are continuously raising financing, whereas established institutional investors are free to pursue a multitude of deals without pause. In many ways, well-capitalized private equity funds and corporate acquirers have an advantage over FBA aggregators and rollup companies. These firms have high throughput and close deals incredibly quickly however, there are certain drawbacks. Recently, a number of funds have endeavored to acquire a swath of interrelated brands to build out portfolios. As capital continues to pour into the space, I expect M&A deal flow from private equity and corporate strategies to increase, along with the volume of high-value acquisitions.Īmazon-based businesses are in high demand, and some investors are willing to pay more than others. This translates to better valuations for sellers but also increases the complexity of the transaction. ![]() Consequently, they can afford to pay much higher multiples. Sophisticated investors are focused on acquiring premium assets. To do so, I've observed some firms deploying vast amounts of capital as part of their evolving digital strategy. Private equity and corporate strategic acquirers: Established institutions - including boutique private equity and strategic acquirers - are pursuing the top quartile of brands.However, aggregators are not the only firms I've seen that are interested in the Amazon space. Thrasio recently raised $750 million in financing to acquire more Amazon Marketplace businesses. In 2018, the firm acquired Angry Orange for $1.4 million, and by 2020, Angry Orange was generating $30 million in revenue. Thrasio, for example, saw tremendous results in just a few short years.
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