(AA) LEGO Lighting Kits ecomm business – selling for $3.5M?

Hi folks, Will here from the Acquisitions Anonymous team. Today's episode looked at a unique e-commerce business based in Estonia that sells lighting kits for LEGO sets, with a serious price tag. This business ("Game of Bricks") is on the market for $3.5 million. They've got impressive annual revenues of $3.7 million and EBITDA of around $500K, which puts its asking price at about 7x EBITDA. But the margins are only around 13%, and a 20% customer return rate looks like many buyers are one-time customers rather than repeat shoppers. Not to mention they likely get their products from China... hello geopolitics. Takeaways - Asking 7x EBITDA raises questions about value, especially with such thin margins. - A 20% customer return rate suggests that many purchases are one-offs - Sourcing products from China is some not fun risk exposure right now - Given current market conditions, are people buying this stuff? Enough to justify $3.5M? You can listen to the whole episode here: https://www.youtube.com/watch?v=Kzj1At3VtlI And check out the business listing direct: https://www.bizbuysell.com/Business-Opportunity/lights-for-lego-game-of-bricks/###-###-#### /