The business in question operates entirely on Amazon, utilizing the Fulfillment by Amazon (FBA) business model. Its valuation is determined by applying a 2x multiple to the profits generated in the past 12 months and adding the cost of the current inventory. Over the previous year, the business achieved a profit of USD 55,000. Using the 2x profit multiple, the core business value is calculated to be USD 110,000. In addition, the business holds inventory valued at approximately USD 35,000, although this figure requires precise calculation before any transaction occurs. Combining these two components, the total value of the business is currently estimated at USD 145,000. This evaluation provides a comprehensive overview of the financial standing of the business, highlighting both its historical profitability and present stock valuation as key factors in its overall worth.
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Before making an offer
1. Look for verified sellers. Sellers should verify their email, phone, and government ID. When a seller has completed all verifications, we identify them with a checkmark like this:
2. Review financials. Financials are seller-provided inputs. Always ask for verified financials. Ask for a tax return or request access to their dashboard. if it’s an ecommerce store get a transaction report.
3. Review traffic. Sellers can grant you access to Google Analytics. Ask for read-only access to verify site traffic.
4. Schedule a call. Communication is key. The best way to find out more is to speak directly with the seller. For your protection, keep all communication within Flippa.
5. Make the offer on Flippa. We’re here to help. Flippa does not charge buyers and by making an offer on Flippa you’ll get access to our post-sales support team.
1. Agreements & Contracts.
Connect with a US-based lawyer or purchase asset-specific template legal documents via Flippa Legal.
2. Conduct Due Diligence.
You can conduct this yourself or use our trusted network of industry-leading due diligence partners. They can provide in-depth analysis, identify hidden risks, and independently assess the value of the business. Learn More