Buyer 'Green Light' Valuation Framework

Framework

Buyers evaluate an Amazon brand acquisition against a set of "green lights," and the more green lights a brand shows, the higher the achievable multiple:

Size — larger revenue/profit brands are lower risk (see Minimum Deal Size for Buyer Interest (Amazon Brand Sales)).
Growth — double-digit growth is ideal.
Margin — 15%+ net margin is considered good; most advisory clients run 20-25%.
Portfolio health — a rationalized, high-margin SKU mix (see Amazon FBA Exit Preparation Checklist) rather than a long tail of legacy low-margin SKUs.

Use

This framework is what a seller's prep work (trademarks, SKU cuts, listing refreshes) is ultimately optimizing for before entering the Amazon FBA Business Sale Process Stages.

Specific Thresholds

Concrete pass/fail bars used per factor: growth rate — double-digit YoY growth is the ideal green light; profit margin — 15%+ is considered good, 20-25% very healthy. Product portfolio health is assessed via a contribution margin review across SKUs, not a single blended margin number.

Из тем: Selling the Brand