🚪 Exit in 2025? 🗝️

🚪 Exit in 2025? 🗝️

October 30, 2024

Hi ,

From what I’m seeing and hearing in the Amazon ecosystem, there are fewer buyers than ever, money is expensive, and selling the business for a multiple over 3x is a dream for most.

What increases your chance of exiting?

Having more legs to your business.

What do those legs look like?

Before we get into those, the basics are:

  1. Having your supply chain under control.

  2. Having your PPC under control.

  3. Having your net margins at least 20% (the lowest should be 15%, but anything over 20% is ideal).

  4. Having trademarks for your brand in different countries (China included).

If you don’t have the above, the legs might not help you.

Here are a few of the legs I’m referring to:

  1. Having a robust product development and launch system.

  2. Barriers to entry with your best-selling products can be any of or a combination of the following: expensive, heavy, bulky, patents, molds, anything that requires complicated documents, such as hazardous products or products that require FDA/CE approvals, etc.

  3. A higher AOV / LTV from your customers on/off Amazon (having some consumable products can significantly help here).

  4. Off-Amazon presence, with over 20% of the revenue coming from there.

  5. At least one (but better if you have a few) hero products - These generate more than $50K in monthly revenue or more than $10K in net monthly profit.

Even if you check every box of the legs above, you still do not get more than a 3x multiple.

Why?

Because the most critical leg these days is the size of your business. After talking to over 30 potential buyers, most are looking for businesses doing over $10,000,000 in revenue in the past 12 months, with a 20% margin (again, 15% might be ok in some cases).

To reach the 8-figure mark, you must have your team and systems in place. This is helpful for a potential increase in the multiple when you exit and should be the way forward, as we don’t know if the market will shift again in the next few years. The right way to build a business is to remove yourself from the day-to-day so you can focus on growing your current brand, launching new brands, or investing in your personal development.

For these reasons, I’ve launched my new program - Alpha Pack.

Alpha Pack is designed to get you from 7 to 8 figures, while spending less time on your business. We accomplish this in several ways, but the important things we work on are the “legs” mentioned above.

A few things about the program:

  1. You’re paying monthly; you can leave at any time. There’s even a 60-day money-back guarantee.

  2. You will have direct access to me, my team, and any other member of Alpha Pack (all already doing 7 or 8 figures on Amazon).

  3. The communication is done through Slack to keep things as simple as possible.

  4. The content and training are done in the dedicated app we’ve created.

  5. You will receive access to unique software we’ve developed on needed features that don’t exist anywhere else.

  6. You are not doing this alone. You will be placed in a mastermind with four other sellers around your level in a similar time zone, all selling in different categories. You will scale your businesses together as a group and support one another.

  7. Besides myself, there will be six other 8-figure sellers guiding your business. These are people I highly respect in the Amazon eco-system and are active successful sellers.

  8. As mentioned above, the program aims to get you to the 8-figure mark. I know that’s when true freedom comes into play. This is when you can decide if you want to keep removing yourself by further automating the business, if you're going to keep scaling, or if you wish to have your dream exit.

If you’re already at 7 figures and looking to scale, reply ALPHA to this email, and I’ll send the details.

Tomer

P.S

We’re having our kickoff call on November 11 and currently have 15 spots left.