Our Results
In a quieter M&A market, using the right advisors is essential for a successful sale.
When valuations are slightly down it is more important than ever to find the true highest price and best terms in the market. An average result in a quiet market is not a good result at all. If you have an exceptional brand, you can still achieve an exceptional outcome, even in a quiet market.
Above-Market Results
Hahnbeck has a track record of consistently achieving above-market results for its clients. In booming markets and quiet markets, our dedicated team and proven methodologies have repeatedly found the optimum price and terms for each one of our clients, regardless of market conditions.
Each business is different. What we do is optimise the sale process to make sure that whatever is the highest price and best terms for that particular business, we find it.
Any broker, website or DIY method can “just sell” your business, if you don’t mind getting less than it is worth.
The smartest Amazon and DTC brand owners come to Hahnbeck for superior service, a truly optimal result, and support through due diligence to actually close the deal. See how Hahnbeck is different to other advisors.
2022 Results
Highest Multiple of EBITDA Achieved in 2022
Upfront consideration, excluding inventory 8.76x
Upfront consideration, including inventory (EV basis) 10.38x
Total including conservative estimate for deferred consideration 11.51x
This was a small (<$10m) consumer brand with multiple channels, majority Amazon FBA. We closed this deal for the client at 8.76 x EBITDA in cash at closing + the full value of the inventory in cash at closing + a generous earnout on top. Read the case study here.
Average Multiple of EBITDA Achieved in 2022
Upfront consideration, excluding inventory 6.96x
Upfront consideration, including inventory (EV basis) 8.36x
Total including conservative estimate for deferred consideration 9.19x
The majority of the deals above closed between May and December 2022. In a year where the market was reporting sudden declines in valuations from March 2022 onwards, and many comparable deals across the market were closing at 2x-2.5x SDE, Hahnbeck’s average multiple of 6.96x EBITDA in cash at closing (our equivalent figure in SDE terms is an average multiple of 4.69x SDE in cash at closing) is truly outstanding.
“In a year where comparable deals across the market were closing at 2x-2.5x SDE, Hahnbeck’s average multiple of 4.69x SDE in cash at closing is truly outstanding”
Previous Results
Our previously reported 2021 results are even stronger, with an average 7.38x EBITDA in guaranteed consideration (cash at closing and guaranteed deferred), excluding inventory and excluding performance-based deferred consideration.
Clients included in the above are from the UK, the US and the EU so all currencies have been converted into USD for consistency. Only sell-side Amazon deals are included in this data. We published this in Feb 2022.
* Amazon FBA and FBM deals for the 12 months to February 2022, including only guaranteed consideration, as a multiple of EBITDA. As a multiple of SDE the number is 5.51x in guaranteed consideration, on average. In terms of total deal value the average multiple of SDE is 6.33. Inventory is on top of this. These are all Hahnbeck clients.
1 Advised transaction total includes both Hahnbeck clients and those who we advised extensively but did not take on as clients. All of these are online retailers.
“Hahnbeck obtained multiple offers that were quite literally about double what I would have expected to achieve going at it alone.“
- Jordan, owner of a successful US Amazon FBA business. See this testimonial in full.
Our Results Speak For Themselves
Hahnbeck has one aim: to achieve the best possible result for each client.
Our methodology enables this. Our results show that we are consistently achieving it.
Only two things are needed to consistently outperform the market: expertise and execution. We have the right people, with the right expertise (chartered accountants, dealmakers with billions of dollars in transactions), and extensive industry connections. High level execution comes from deeply caring about our clients and the outcome we achieve for them. This cannot be overstated.
Other aspects that cannot be quantified include the support we provide throughout the process, the confidentiality that we maintain for our clients, the connections we have in the market and the advice that we provide during the more difficult phases of the process. We work closely with the best M&A lawyers, accountants and finance firms in the consumer sector. We can provide the support you need through any size of deal.
If you would a like to discuss the sale of your business please don’t hesitate to contact us at info@hahnbeck.com or on +44 203 669 1654. We’re happy to help. You can also get a free, instant business valuation on our website at any time.