Amazon FBA Acquirers
2024 LIST OF AMAZON AGGREGATORS

The companies known as Amazon aggregators have had an enormous impact on e-commerce M&A in recent years. Bursting onto the scene in 2020 and 2021, their competition for Amazon-focused CPG brands drove valuations sky-high. The aggregators’ well-publicised challenges since 2022 have contributed to a marked slowdown in the pace of acquisitions in this sector. Consolidation of these firms has commenced and will continue, but the model is here to stay. It is important for the owners of small, independent CPG brands to understand who these firms are, which ones are actively acquiring and what they are looking for in their acquisition targets.

On this page you’ll find the most up-to-date list of Amazon FBA aggregators, including their disclosed funding levels, their acquisition criteria, whether or not they are still acquiring, as well as a guide to Amazon FBA business valuations.

Besides the aggregators there are other buyers for these businesses, such as strategics and private equity, discussed briefly here also.

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"Aggregators" of Amazon FBA E-Commerce Businesses

This is the most comprehensive and up-to-date list of Amazon FBA aggregators, starting with the acquirers with disclosed funding (including both debt and equity):

  • Thrasio (Acquisition Focus: Global) $3,396,500,000
    Status: Not currently acquiring, with rare exceptions (type 2*)

  • Berlin Brands Group (Acquisition Focus: Global) $1,342,000,000
    Status: Not currently acquiring at all (type 1*)

  • Razor Group (Acquisition Focus: Global) $1,072,760,000
    Status: Not currently acquiring at all (type 1*)

  • Heyday (Acquisition Focus: Global) $800,000,000
    Status: Still in the market for acquisitions, but M&A not currently a primary focus (type 3*)

  • SellerX Group (Acquisition Focus: EU, UK, North America) $825,680,000
    Status: Actively acquiring brands, growth via acquisition is a primary focus (type 4*)

  • Dragonfly (Acquisition Focus: North America, UK, EU) $500,000,000
    Status: Not currently acquiring, with rare exceptions (type 2*)

  • Unybrands (Acquisition Focus: North America, UK, EU) $450,000,000
    Status: Actively acquiring brands, growth via acquisition is a primary focus (type 4*)

  • Growve (Acquisition Focus: Global) $400,000,000
    Status: Still in the market for acquisitions, but M&A not currently a primary focus (type 3*)

  • Merama (Acquisition Focus: LatAm) $445,000,000
    Status: Not currently acquiring, with rare exceptions (type 2*)

  • Boosted Commerce (Acquisition Focus: North America, EU, UK) $380,000,000
    Status: Still in the market for acquisitions, but M&A not currently a primary focus (type 3*)

  • Acquco (Acquisition Focus: North America, UK, EU) $325,000,000
    Status: Still in the market for acquisitions, but M&A not currently a primary focus (type 3*)

  • GlobalBees (Acquisition Focus: India) $290,000,000
    Status: Not currently acquiring, with rare exceptions (type 2*)

  • Heroes (Acquisition Focus: UK, EU, North America) $265,000,000
    Status: Still in the market for acquisitions, but M&A not currently a primary focus (type 3*)

  • Society Brands (Acquisition Focus: North America, UK, EU) $230,000,000
    Status: Actively acquiring brands, growth via acquisition is a primary focus (type 4*)

  • Mensa Brands (Acquisition Focus: India, EU, UK, USA) $218,000,000
    Status: Still in the market for acquisitions, but M&A not currently a primary focus (type 3*)

  • Moonshot Brands (Acquisition Focus: North America, UK, EU) $180,000,000
    Status: Not currently acquiring, with rare exceptions (type 2*)

  • Accel Club (Acquisition Focus: North America, UK, EU) $170,000,000
    Status: Still in the market for acquisitions, but M&A not currently a primary focus (type 3*)

  • Olsam Group (Acquisition Focus: UK, EU, North America) $165,000,000
    Status: Actively acquiring brands, growth via acquisition is a primary focus (type 4*)

  • Branded (Acquisition Focus: North America, UK, EU) $150,000,000
    Status: Still in the market for acquisitions, but M&A not currently a primary focus (type 3*)

  • Nebula Brands (Acquisition Focus: China) $150,000,000
    Status: Not currently acquiring at all (type 1*)

  • Intrinsic (Acquisition Focus: North America, EU, UK) $128,000,000
    Status: Actively acquiring brands, growth via acquisition is a primary focus (type 4*)

  • Foundry Brands (Acquisition Focus: North America) $127,000,000
    Status: Still in the market for acquisitions, but M&A not currently a primary focus (type 3*)

  • Forum Brands (Acquisition Focus: North America, UK, EU) $127,000,000
    Status: Still in the market for acquisitions, but M&A not currently a primary focus (type 3*)

  • The Ambr Group (Acquisition Focus: North America, UK, EU) $125,000,000
    Status: Still in the market for acquisitions, but M&A not currently a primary focus (type 3*)

  • Neso Brands (Lenskart) (Acquisition Focus: International) $100,000,000
    Status: Not currently acquiring, with rare exceptions (type 2*)

  • OpenLabs (Acquisition Focus: Indonesia & South East Asia) $100,000,000
    Status: Not currently acquiring, with rare exceptions (type 2*)

  • Rainforest (Acquisition Focus: Asia Pacific) $100,000,000*
    Status: Still in the market for acquisitions, but M&A not currently a primary focus (type 3*)

  • Una Brands (Acquisition Focus: Asia Pacific) $100,000,000
    Status: Actively acquiring brands, growth via acquisition is a primary focus (type 4*)

  • GOAT Brand Labs (Acquisition Focus: India) $86,000,000
    Status: Not currently acquiring, with rare exceptions (type 2*)

  • YABA (Acquisition Focus: North America & Europe) $85,000,000
    Status: Actively acquiring brands, growth via acquisition is a primary focus (type 4*)

  • Opontia (Acquisition Focus: MENA Region) $64,000,000
    Status: Not currently acquiring, with rare exceptions (type 2*)

  • Quinio (Acquisition Focus: Latin America) $60,000,000
    Status: Not currently acquiring, with rare exceptions (type 2*)

  • Gravitiq (Acquisition Focus: US, Europe and Asia) $55,000,000
    Status: Actively acquiring brands, growth via acquisition is a primary focus (type 4*)

  • eBrands (Acquisition Focus: EU,UK, North America) $50,000,000
    Status: Still in the market for acquisitions, but M&A not currently a primary focus (type 3*)

  • Wholesum Brands (Acquisition Focus: Asia, South Korea) $50,000,000
    Status: Not currently acquiring, with rare exceptions (type 2*)

  • Win Brands Group (Acquisition Focus: North America, UK, EU) $50,000,000
    Status: Not currently acquiring, with rare exceptions (type 2*)

  • 10club (Acquisition Focus: India) $40,000,000
    Status: Not currently acquiring, with rare exceptions (type 2*)

  • Wonder Brands (Acquisition Focus: Latin America) $40,000,000
    Status: Not currently acquiring, with rare exceptions (type 2*)

  • Go North (Acquisition Focus: Europe) $30,000,000
    Status: Not currently acquiring at all (type 1*)

  • TCM Digital (Acquisition Focus: North America, UK, EU) $28,000,000
    Status: Not currently acquiring at all (type 1*)

  • Rubibrands (Acquisition Focus: Central Eastern Europe, Middle East and Africa) $23,000,000
    Status: Not currently acquiring, with rare exceptions (type 2*)

  • Mothership (Acquisition Focus: UK, EU, North America) $22,000,000
    Status: Still in the market for acquisitions, but M&A not currently a primary focus (type 3*)

  • Flummox (Acquisition Focus: EU, UK) $12,900,000
    Status: Still in the market for acquisitions, but M&A not currently a primary focus (type 3*)

  • Flora (Acquisition Focus: Global) $9,000,000
    Status: Still in the market for acquisitions, but M&A not currently a primary focus (type 3*)

  • Forest (Acquisition Focus: Japan) $8,000,000
    Status: Not currently acquiring at all (type 1*)

  • Markai (Acquisition Focus: Asia) $4,000,000
    Status: Not currently acquiring at all (type 1*)

  • Recontour (Acquisition Focus: North America, EU, UK) $3,900,000
    Status: Not currently acquiring, with rare exceptions (type 2*)

  • Alphagreen (Acquisition Focus: North America, EU, UK) $3,500,000
    Status: Not currently acquiring, with rare exceptions (type 2*)

  • Telos Brands (Acquisition Focus: North America) $2,100,000
    Status: Not currently acquiring at all (type 1*)

  • Amzify Brands (Acquisition Focus: Africa) $1,500,000
    Status: Still in the market for acquisitions, but M&A not currently a primary focus (type 3*)

  • Evenflow Brands (Acquisition Focus: India) $1,000,000
    Status: Not currently acquiring at all (type 1*)

    Aggregators who have not disclosed their available resources yet:

  • Artica (Acquisition Focus: North America) Funding Amount Undisclosed
    Status: Not currently acquiring, with rare exceptions (type 2*)

  • Brand1 Ventures (Acquisition Focus: North America, UK, EU) Funding Amount Undisclosed
    Status: Actively acquiring brands, growth via acquisition is a primary focus (type 4*)

  • BrandHero (Acquisition Focus: North America, UK, EU) Funding Amount Undisclosed
    Status: Not currently acquiring, with rare exceptions (type 2*)

  • Caletay (Acquisition Focus: Global) Funding Amount Undisclosed
    Status: Not currently acquiring, with rare exceptions (type 2*)

  • Cling Capital (Acquisition Focus: Global) Funding Amount Undisclosed
    Status: Not currently acquiring at all (type 1*)

  • Cinchona (Acquisition Focus: UK) Funding Amount Undisclosed
    Status: Not currently acquiring, with rare exceptions (type 2*)

  • Cincy Brands (Acquisition Focus: US) Funding Amount Undisclosed
    Status: Not currently acquiring, with rare exceptions (type 2*)

  • Enso Brands (Acquisition Focus: Global) Funding Amount Undisclosed
    Status: Not currently acquiring, with rare exceptions (type 2*)

  • Excite Foundry (Acquisition Focus: UK, EU) Funding Amount Undisclosed
    Status: Not currently acquiring, with rare exceptions (type 2*)

  • Fevup Brands (Acquisition Focus, Turkey, EU, UK, US)
    Actively acquiring brands, growth via acquisition is a primary focus (type 4*)

  • Goja (Acquisition Focus: Global) Funding Amount Undisclosed
    Status: Not currently acquiring, with rare exceptions (type 2*)

  • Greenhaus (Acquisition Focus: North America, UK, EU) Funding Amount Undisclosed
    Status: Actively acquiring brands, growth via acquisition is a primary focus (type 4*)

  • Lyon Capital (Acquisition Focus: North America) Funding Amount Undisclosed
    Status: Actively acquiring brands, growth via acquisition is a primary focus (type 4*)

  • Mantaro Capital (Acquisition Focus: North America, UK, EU) Funding Amount Undisclosed
    Status: Not currently acquiring at all (type 1*) Note: this is a different entity to Mantaro Brands

  • Marketplace Powerbrands (Acquisition Focus: EU, UK, North America) Funding Amount Undisclosed
    Status: Not currently acquiring, with rare exceptions (type 2*)

  • Merx Brands (Acquisition Focus: EU, UK, North America) Funding Amount Undisclosed
    Status: Not currently acquiring, with rare exceptions (type 2*)

  • Monolith Brands Group (Acquisition Focus: North America) Funding Amount Undisclosed
    Status: Actively acquiring brands, growth via acquisition is a primary focus (type 4*)

  • Neulabs (Acquisition Focus: EU) Funding Amount Undisclosed
    Status: Still in the market for acquisitions, but M&A not currently a primary focus (type 3*)

  • New Vessel (Acquisition Focus : South Korea, Japan) Funding Amount Undisclosed
    Status: Not currently acquiring at all (type 1*)

  • One Retail Group (Acquisition Focus: UK, EU) Funding Amount Undisclosed
    Status: Not currently acquiring, with rare exceptions (type 2*)

  • Pilot Wave Holdings (Acquisition Focus: North America) Funding Amount Undisclosed
    Status: Not currently acquiring, with rare exceptions (type 2*)

  • Pearl West (Thrasio) (Acquisition Focus: Global) Funding Amount Undisclosed
    Status: Still in the market for acquisitions, but M&A not currently a primary focus (type 3*)

  • Powerhouse91 (Acquisition Focus: India) Funding Amount Undisclosed
    Status: Not currently acquiring, with rare exceptions (type 2*)

  • Scythia (Acquisition Focus: UK, EU, North America) Funding Amount Undisclosed
    Status: Still in the market for acquisitions, but M&A not currently a primary focus (type 3*)

  • Spring Commerce (Acquisition Focus: North America) Funding Amount Undisclosed
    Status: Not currently acquiring, with rare exceptions (type 2*)

  • Umbrella Fund (Acquisition Focus: North America, EU, UK) Funding Amount Undisclosed
    Status: Not currently acquiring, with rare exceptions (type 2*)

  • Upexi (Acquisition Focus: Global) Funding Amount Undisclosed
    Status: Not currently acquiring, with rare exceptions (type 2*)

  • Volcan Brands (Acquisition Focus: EU, UK, North America) Funding Amount Undisclosed
    Status: Not currently acquiring at all (type 1*)

  • Wethebrands (Acquisition Focus: EU UK, North America) Funding Amount Undisclosed
    Status: Not currently acquiring, with rare exceptions (type 2*)

* Acquisition Status Explained:

1) Not acquiring at all means not currently open to acquiring independent Amazon FBA brands
2) Not acquiring, with rare exceptions means not currently acquiring, with the exception of extraordinary opportunities (v low multiple or other exceptional circumstances)
3) Still in the market but M&A not a primary focus means still making acquisitions, with capital ready to deploy, but other initiatives are higher priority at the moment
4) Actively acquiring, growth via acquisition is a primary focus means inorganic growth is currently a high priority; actively seeking to make new acquisitions

Note that within each acquisition status classification type, there is a great deal of variance. Some firms have broader acquisition criteria and some are very specific. A number of firms have specialised in only one specific category, and these categories are different for each acquirer. Some have minimum EBITDA requirements above $2m while a small number of acquirers have maximum EBITDA limits of around $250k and there are many in between. Importantly, some firms in types 3 and 4 have strict EBITDA multiples that they will not go above, restricting them to lower-priced deals, whereas others will bid more competitively for acquisitions that fit their ideal brief.

It should also be noted that even the firms with the most acquisitive classification above (type 4) are making far fewer acquisitions than previously. Some of the firms who have asked us to classify them as type 4 made only one or two acquisitions in all of 2023, for example.

Companies in all of the above groups are actively considering merger and acquisition opportunities with other aggregators. The above classification only applies to their status with regard to acquiring independent brands from their founders.

How Much Have They Raised In Total?

The total currently stands at 80 confirmed acquirers of this kind. In total the aggregators have raised $16.263 billion in disclosed funding, of which $2.357 billion was reduced to zero through mergers, $40m was reduced to zero through closures, leaving $13.406 billion in disclosed debt and equity investments in “live” aggregators.

Funding amounts have been converted to USD. Debt refinancing rounds such as Merama’s $80m refinancing have not been included in the above. Aggregators who have been acquired have been reduced to zero in the above calculation – for example Perch ($909m), Elevate Brands ($590m), Cap Hill Brands ($250m), Factory14 ($200m), Valoreo ($160m), Stryze ($100m), Profound Commerce ($53m) and others. The additional $60m in equity financing raised by SellerX as part of its acquisition of Elevate Brands included in the total for SellerX. The combined funding totals for Suma Brands and D1 Brands of $273m were reduced to $125m with their merger into the Ambr Group. Benitago’s $380m was reduced to zero when it closed down. In addition to the above we are aware of several other debt and equity raises that are not disclosed.

Why Are Some Aggregators Not Listed?

The list above excludes aggregators of primarily DTC brands (eg: Shopify aggregators) - we work with these aggregators also, but since their primary focus is not Amazon-native brands they are not included on this list. Some groups claiming to be Amazon FBA acquirers have been removed from the list above if we have not been able to verify them. Other former Amazon aggregators have pivoted to other business models, been acquired, or shut down. These are listed at the bottom of this page. Other lists of Amazon FBA aggregators often incorrectly include firms in the categories above.

If you would like to speak to us selling your Amazon FBA business to these acquirers or the many other acquirers of e-commerce businesses, just send us an email at info@hahnbeck.com. Even if you just need some advice from someone who understands the market, we would be happy to help.

What Are They Looking For? How Much Will They Pay?

What is an Amazon FBA business worth to these buyers? How much would they pay for your business? If you would like a specific valuation for your business just contact us at info@hahnbeck.com or use the calculator form on our FBA Valuation page.

Most serious buyers, including the Amazon aggregators, no longer see themselves as buyers of “FBA businesses”; they are buyers of brands.

Each acquirer has different criteria, and there are dozens of elements that go into a valuation. But broadly speaking we can group their acquisition criteria into two categories: (1) “yes/no” decision criteria and (2) valuation metrics.

Image: Thrasio

“YES/NO” DECISION CRITERIA: 2024

Generally speaking these acquirers will be interested if your business meets all of these criteria:

  1. Private label brand - you are selling primarily your own branded products

  2. Large enough - generating minimum net profit levels

    • Each acquirer is different but most require minimum $500k annual net profit*, some require $1m or even $2m annual net profit*

  3. Strong net profit margins - the higher the better. Businesses with >20% margins are far more attractive than those with lower margins. This varies a little by category but generally 15% is the absolute minimum

  4. A real “brand” - differentiating your products from others in the same category, enabling you to charge higher prices than some competitors

  5. Amazon focus

    • Still preferred by the majority of the Amazon aggregators, although an increasing number are open to (and some even prefer) multichannel brands. A few are open to acquiring pure DTC brands

    • The Amazon 3P (Seller) channel is much more attractive than the 1P (Vendor) channel

  6. Amazon fulfilment - FBA is still preferred for most aggregators

  7. No black hat tactics - you haven’t ever engaged in anything that might result in a future deactivation of your account

  8. Not a fad - the business should not be selling a “here today, gone tomorrow” product

  9. Not purely COVID-related - this topic is less important than it was a few years ago, but there is no appetite for PPE, for example

* Net profit in this context = Adjusted EBITDA, i.e. EBITDA with some costs added back, sometimes referred to as SDE or Contribution Margin

In addition to the above each acquirer has its own preferred categories, and each one has a few categories that they will specifically avoid. These vary quite a lot, and generally speaking there are relatively few niches that are on each acquirer’s “excluded” list. There are some themes common amongst many acquirers (fashion apparel, footwear and jewellery are excluded for almost all of them, while most exclude electronics; supplements are excluded for some but are the primary focus for others). Most are open to considering exceptional businesses even in a sector that they have technically excluded.

VALUATION METRICS: 2024

High scores in any of the criteria below will generally result in more appetite for the business and a higher valuation:

  1. Size - the size where there is the most interest from aggregators currently is between $5m and $50m annual sales. Some will look below this and some above this, but this is the most sought after range currently

  2. Net margins - the higher the % margins the better (eg: $1m profit from $4m sales is actually more attractive than $1m profit from $40m sales)

  3. Growth - still very important. Most aggregators do not have any appetite for declining sales

  4. Brand - increasingly important. Aggregators want to be able to sell your products on the shelves of large retail stores eventually, and they want your brand to become well known. A strong positive (although not essential) sign is when customers frequently search for your brand on Amazon

  5. Uniqueness / defensibility - products need to be defensible from competition, beyond merely trademarks and brand registry. There is almost no appetite for “me too” products, even if all of the other metrics of the business are strong

  6. Leading positions in organic searches on Amazon - less important than brand, but still important

  7. Low SKU concentration - more revenue per SKU in other words

  8. Average selling price - $20 to $100 is a sweet spot for many

  9. Proven second channel - this might be a DTC website, a wholesale channel, brick & mortar etc. Even though most aggregators still prefer the majority of sales to be on Amazon, most intend to take their brands into other channels. Demonstrating that the brand is already doing this adds value

  10. Strategic fit - probably the most important of all. The business has to fit with the unique strategy of the acquirer, and this is different for each one. Some are building a platform in one specific category (eg: board games, or supplements) and will be looking for bolt-ons. Others have a broader focus on one specific category (eg: pets). Besides category, each aggregator will have other specific things they are looking for: fulfilment capabilities, IP in specific areas, print-on-demand capabilities, specific skills in the founding team, and more. Finding the buyers with the best strategic fit has the greatest impact on the outcome of the sale process.

There are many other factors that affect the valuation, such as the repeat purchase rate, seasonality of the product range, supply chain factors, the competitiveness of the category, and many others. But the above list is a guide to the most important factors in the valuation. Complete our valuation calculator for specific insight into the valuation of your business.

Hahnbeck has a detailed understanding of the buyers in this space. By understanding their acquisition priorities in depth we are able to find the best acquirers for our clients’ businesses. We’ve sold businesses in categories that are known to be very difficult (eg: mobile phone accessories, resellers) in each case because we have known the buyer in detail. In some cases this meant turning a “no” from the M&A team into a “yes” by speaking directly to the CEO. Having Hahnbeck on your side helps enormously.

Amazon FBA Business Valuations

The Amazon brand aggregators are seeking to acquire good businesses for 3 to 4x multiples of SDE and ever since 2022, they generally seek to pay less than this. With a well-executed competitive bidding process that involves strategic buyers and private equity, it is still possible for small consumer brands to attract 5x multiples, and in exceptional cases 6x or even 8x multiples. But the Amazon aggregators cannot stretch to valuations at this level.

When comparing multiples it’s important to understand the different ways they can be calculated, what can be included and excluded: here is a good breakdown of what Amazon FBA multiples mean.

How To Get The Highest Valuation

Firstly, don’t think about your business as an “Amazon FBA business”. Think about it as a consumer products brand. This is the way the buyers see it. Amazon is merely a channel. Looking at it this way will transform your understanding of the advantages and disadvantages of your business and what makes it attractive to acquirers. They are looking for great brands, not merely efficient businesses.

Valuations have shifted. Some brands are worth more than ever. Find out which ones, and more.

Secondly, don’t rely on one buyer type. Strategic buyers and private equity firms are increasingly important for a competitive process and to achieve the highest valuation. Hahnbeck has an extensive network of both strategic buyers and consumer private equity firms and has always focused on these buyers, in addition to aggregators, in all of our deals. See below and for more detail see How To Sell To A Strategic Buyer.

Perhaps the most important factor affecting the final price and terms of the deal is how effectively the sale process is executed. Selling the business to one of the acquirers above will usually result in an acceptable outcome, but by no means the highest price.

Preparing the business for sale properly, pitching it effectively, to the right people, at the right time, and managing a competitive bidding process properly will allow the business to reach its full market potential and achieve the best terms for the seller.

Hahnbeck protects its clients interests in other ways also, from reducing the risk of retrading (an unprofessional practice that is rife in this sector, especially on deals where the seller is not represented by an experienced advisory firm) to managing negotiations throughout due diligence.

Other Acquirers of Amazon FBA Brands

Besides Amazon “aggregator” firms, other buyers for consumer product brands include strategic buyers, e-commerce brand houses, individual buyers and private equity groups including consumer private equity funds, family offices and search funds. There is some overlap between each of these and indeed between the Amazon aggregators and these other groups.

Many of the most successful builders of Amazon FBA businesses are also seeking to grow through acquisition. Rather than relying purely on their ability to build successful new brands, they see what the other acquirers see: acquisition is a faster and more reliable route to growth. Some of the largest Amazon sellers in the United States and Europe have approached Hahnbeck looking for acquisitions of up and coming brands.

INDIVIDUAL BUYERS

Smaller e-commerce businesses including Amazon FBA brands are generally not large enough for institutional capital (large strategics, most private equity groups, even most aggregators). The main buyers for these businesses are individual entrepreneurs. These people may have extensive operational expertise, such as successful Amazon sellers, or a high degree of confidence in their business acumen, such as MBAs leaving the corporate world to make their first acquisition. They scour thousands of listings on brokerage sites and marketplaces. They may use funding sources such as Boopos or SBA 7(a) loans in the United States, but otherwise they are using their own capital.

Individual buyers cannot generally pay high multiples for acquisitions. They do not have the funds to afford to “make a mistake” so each acquisition (and often they only make one), really matters. This makes them very sensitive to price.

However, they can be easier to work with in other ways. When selling to an individual you are dealing with the decision-maker, which removes a lot of the uncertainty faced by sellers when selling to a large company, where unseen people on a board of directors or investment committee are ultimately making the decisions. Due diligence is often faster and less onerous, especially with individuals who are experienced e-commerce operators.

FAMILY OFFICES

Family Offices are the investment arms of wealthy families. They vary a little in size but are large enough to have employees, which differentiates them from individuals and partnerships. Some represent one family while others are a combination of investments from several families. They may raise outside capital in addition to their own, so there is a blurred line between these groups and private equity funds. We’ve seen family offices paying increased attention to e-commerce lately, as it becomes clear that the sector is outperforming others and will continue to do so.

OTHER PRIVATE EQUITY GROUPS

Search funds and other small private equity groups are increasingly looking at e-commerce acquisitions. While previously these groups preferred traditional, even “boring” businesses in sectors that are relatively unmodernised, we are noticing increased interest for e-commerce businesses amongst these buyers. Like many others, they have seen the potential for scalability offered by e-commerce and are paying increased attention to the space.

Very often we see owners of successful businesses in other sectors who are looking to diversify their holdings into e-commerce. We also see small private equity groups and partnerships planning to acquire multiple e-commerce businesses and combine them into one entity, similar to the roll-up model pursued but the aggregators, but at a smaller scale.

E-COMMERCE BRAND HOUSES

These groups have multiple e-commerce brands under one roof, typically having grown through a mix of building and acquiring the brands over time. These businesses were amongst the earliest acquirers of Amazon FBA businesses (and other e-commerce small businesses), and they are still in the market for acquisitions. As e-commerce operators, their businesses are generally affected by the business cycles that affect e-commerce as a whole, so when trading conditions are more difficult, these buyers are less active.

STRATEGIC BUYERS

Strategic buyers are companies in the same industry or related industries to the target company. For e-commerce businesses this does not simply mean “other e-commerce businesses” - it refers to businesses in the same niche. For example an e-commerce business focused on vitamins and nutritional supplements would make a great acquisition for a larger supplements company, even if that supplements company primarily uses other channels (like brick-and-mortar retail) for their existing business. An small, rapidly growing brand of sportswear may be acquired by a larger sportswear company. An e-commerce business selling drones might be acquired by a strategic buyer selling other technology, looking to add drones to its product range.

Strategic buyers are important because they can usually make more profit from the acquisition than anyone else* due to synergies and scale economies. However, larger strategics also suffer from the all of the issues of large companies in terms of speed and flexibility - they will be more rigid and usually much slower than everyone else. But for an acquisition of the right size, a willing strategic buyer can often pay more in total consideration. The hard part is bringing them to the table. Learn more in How To Sell To A Strategic Buyer.

* In the case of Amazon FBA businesses the maxim that strategic buyers “have the most to gain from an acquisition” is being tested - e-commerce brand houses and Amazon Aggregators are often able to realise substantial synergies, at least in theory.

Former Amazon Aggregators

Several former Amazon aggregator firms have pivoted away from the model, been acquired or shut down. Consolidation of aggregators has already started and will continue. Here is a list:

  • Alpha Rock Capital - no longer acquiring

  • Ampire - pivoted to new business model

  • Benitago - no longer acquiring

  • Boopos - pivoted to new business model

  • Brands United - no longer acquiring

  • Cap Hill Brands - merged with large Amazon seller Juvo+ to form Infinite Commerce

  • D1 Brands - merged with Suma Brands to form The Ambr Group

  • Diverge Group - pivoted to new business model

  • Dwarfs - acquired by Olsam Group

  • Ecommerce Brands - no longer acquiring

  • Elevate Brands - acquired by SellerX

  • Factory14 - acquired by Razor Group

  • FBA Capital Management - portfolio acquired by Profound Commerce

  • Flywheel Commerce - acquired by Olsam Group

  • HighFive Brands - no longer acquiring

  • Inflection Brands - pivoted to new business model

  • Kite - asked to be removed from the list because it does not want to be known as an “aggregator”

  • Mantaro Brands - merged with WeTheBrands, with the combined entity taking the latter name

  • Negotiatore - no longer acquiring

  • Orange Brands - acquired by Berlin Brands Group

  • Perch - acquired by Razor Group

  • Plus Ultra Group - no longer acquiring

  • Primer Holdings - no longer acquiring

  • Profound Commerce - acquired by the Ambr Group

  • Primeridian - no longer acquiring

  • River Sea Network - pivoted to new business model

  • Sorfeo - no longer acquiring (banckruptcy proceedings)

  • Stryze - acquired by Razor Group

  • Suma Brands - merged with D1 Brands to form The Ambr Group

  • Tapuya - acquired by Pilot Wave Holdings

  • Thirstii - acquired by Thrasio

  • Treasure - pivoted to new business model

  • Valoreo - acquired by Razor Group

  • Village Brands - no longer acquiring

  • Wellversed - no longer acquiring

  • Zeelos - no longer acquiring


Hahnbeck is an M&A advisory firm specialising in e-commerce. If you have a growing consumer product brand with at least $1m in annual net profits and you would like to discuss your plans to exit the business, we would be happy to help. Just send us an email or give us a call on (+44) 203 669 1654.