eCommerce multiples in UK/EU

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April 27, 2025

by a searcher from University of Oxford in London, UK

Hello, Would appreciate guidance on indicative multiple ranges for UK/EU eCommerce product based businesses doing EBITDA: - under £500k - £500k - 1m - £1m - 2m Thank you Ben Neville
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Reply by a searcher
from University of Ottawa in Dubai - United Arab Emirates
DTC businesses in the US go for 2x-4x + Inventory (Asset Purchase); we have previously negotiated as little as 1x upfront + % profit share on excess cash until an additional 1x is returned to the seller. Factors to consider are the cash conversion cycle, growth, revenue model, and age. A premium is given to businesses that are recurring in nature. Inventory can be negotiated to be paid out to the seller as it is sold. Beware that UK/EU businesses are significantly less liquid than their US counterpart come exit - they also carry a lot more compliance overheads. Feel free to reach out if you want to chat - we specialize in acquiring & operating online businesses.
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Reply by a professional
from University of Bristol in London, UK
A low multiple would definitely be arguable on size alone, however the growth & potential of the entity could change that picture completely so you should look to benchmark against companies with similar growth profiles
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