How to Maximize the Valuation of Your Amazon eComm Business for Prospective Buyers
Hi everyone. My name is David Miller. I manage our business law for sellers department here at Amazon Sellers Lawyer.
Today, I want to discuss valuing your Amazon ecommerce business.
One way of valuing your business (and there are several) is called EBITDA.
EBITDA stands for: Earnings Before Interest, Taxes, Depreciation, Amortization.
This measures a company’s overall financial performance. It really just measures profitability in some. It’s also an alternative to net income, but some people think it’s misleading because it strips out capital investments such as property and equipment. But a general rule of thumb is that about four to six times EBITDA is what most prospective buyers, how they calculate what your business is worth.
Now, again, there are a variety of different ways to value it. EBITDA is one of them, you can choose to value your business higher than that, but I think it’s important for all sellers to know how prospective buyers are viewing their business.
If you have any questions about valuing your Amazon ecomm business, feel free to give us a call, 1-877-9-SELLER.
For more information about Amazon business, see below: