Sell My DTC Brand – AI-Powered Brokerage & Valuation

Q: How long does it take to sell a DTC brand?

Most sales complete in 3–5 months from preparation to close, depending on size, margin profile, buyer fit, inventory complexity, and data‑room readiness.

Q: How much is my DTC brand worth?

Valuation is typically a multiple of EBITDA or SDE adjusted for growth, margins, CAC/LTV & MER, repeat rate/subscriptions, channel mix, returns/chargebacks, supplier risk, and brand/IP strength. We produce a defensible range using AI‑assisted comps and sensitivities.

Q: How do you value a DTC brand (methodology)?

We use AI‑assisted market comps plus metric drivers (contribution margin, CAC/LTV, MER/ROAS, repeat rate, channel mix, returns) to produce a range with sensitivities.

Q: What documents do I need for due diligence?

Clean financials; Shopify/Amazon exports (revenue, AOV, cohorts, repeat rate); Ad accounts (Meta/Google/TikTok) reports; supplier & 3PL contracts; trademarks & product compliance; returns/chargebacks; inventory reports; SOPs.

Q: How are revenue and margins verified?

Via platform exports (Shopify, Amazon), payment processors, and bank statements; margin waterfall reconciliation plus cohort and returns analyses.

Q: Do I need audited financials?

Not always. Accurate, verifiable books with reconciled revenue and consistent KPI reporting are usually sufficient; larger deals may request reviews or audits.

Q: What are typical business broker fees?

Success‑based commission (sliding by deal size) is standard. Some brokers charge optional upfront fees for valuation/exit‑readiness deliverables that reduce time‑to‑close.

Q: How do you keep the sale confidential?

NDA‑gated data rooms, anonymised teasers, and targeted outreach to vetted buyers only. Identity and sensitive data are disclosed in stages.

Q: What deal structures are common (cash vs earn‑out)?

A mix of cash at close plus earn‑out or deferred elements tied to EBITDA, revenue, or MER/ROAS targets is common; structure depends on risk, growth, and buyer type.

Q: Asset sale vs share sale — what’s the difference?

Asset sales transfer selected assets (trademarks, domains, customer data where permitted, inventory) and liabilities; share sales transfer the company as a whole. Outcomes vary by tax, liability, and operational continuity.

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Confidential

AI-assisted comps

Data-room ready

Clear terms

How Much Is My DTC Brand Worth?

Short answer: Valuation ≈ EBITDA/SDE × market multiple, adjusted for gross & contribution margin, growth, retention/repeat rate, CAC/LTV & MER/ROAS, channel mix (Shopify/Amazon/Wholesale), SKU economics, returns/chargebacks, ops complexity, and brand/IP strength.

Valuation, in brief (5 steps)

Choose method: EBITDA for most brands; SDE for smaller owner‑operated; revenue multiple only for larger brand‑like businesses.
Normalise metrics: GAAP revenue, gross & contribution margin, ad spend, CAC/LTV, MER/ROAS, returns & discounts, inventory adjustments.
Benchmark with comps: niche, price point, AOV, repeat rate, channel mix (DTC/Amazon/Wholesale/Subscriptions), seasonality.
Adjust for risk: supplier dependence, inventory turns, product liability/compliance, key‑person risk, platform risk (ads/marketplaces).
Run scenarios: base / upside / de‑risked (e.g., SKU rationalisation, CAC cut, ops improvements) to set a defensible range.

DTC Valuation Multiples in 2025 (Indicative)

Ranges vary by size, quality, and buyer type. Treat these as directional bands, not guarantees.

Profile	Basis	Indicative Range*
Owner‑operated, <$1m EBITDA	SDE/EBITDA multiple	~2.5×–4.0× SDE or EBITDA
$1m–$5m EBITDA, steady growth	EBITDA multiple	~4.0×–7.0× EBITDA
$5m+ EBITDA, strong brand metrics	EBITDA multiple	~6.0×–9.0× EBITDA

*Illustrative bands only; outcomes depend on growth, margins, retention, SKU/unit economics, risk, buyer type, and market conditions.

How We Value DTC: Margins, CAC/LTV, MER/ROAS, Repeat Rate

Driver	Strong Signal	Effect on Multiple
Growth	Consistent QoQ revenue growth with forecasted pipeline	Higher (durable growth)
Contribution Margin	CM ≥ 30% after COGS, fulfilment, and variable marketing	Higher (cash generation)
CAC/LTV & MER	LTV:CAC ≥ 3:1; blended MER at target; efficient ROAS	Higher (efficient acquisition)
Repeat Rate & Subscriptions	High 60/90/180‑day repeat; healthy subscription share	Higher (predictability)
Channel Mix	Diversified (Shopify/Amazon/Wholesale) with stable AOV	Higher (lower platform risk)
Ops & Compliance	Reliable suppliers, strong QA/claims record, low returns	Higher (lower execution risk)

SDE vs EBITDA for DTC: Which One Matters?

Smaller, owner‑operated brands often price on SDE. Systemised brands and platform plays trend to EBITDA. We compute both and align to the buyer pool.

How our AI model improves the valuation

Maps your metrics to live deal/comparable bands (niche, price tier, margins, repeat rate, channel mix).
Runs sensitivity on CAC, contribution margin, and SKU mix to show multiple uplift.
Ranks buyer fit (strategic vs financial) to indicate likely price/structure scenarios.

Example (illustrative): EBITDA $1.4m; CM 35%; 28% YoY growth; LTV:CAC 3.6×; returns 3%; diversified Shopify/Amazon; strong supplier terms → AI comps yield a defensible range and show how +3 pts CM or −15% CAC lifts the range.

What to prepare (faster valuation)

Last 24 months P&L/BS/CF; margin waterfall (COGS, fulfilment, variable marketing), channel P&L.
Shopify/Amazon exports: revenue, AOV, cohorts, repeat rate, subscription metrics, returns/chargebacks.
Ad accounts (Meta/Google/TikTok) performance & spend; CAC/MER dashboards.
Inventory: current/aging, turns, landed cost, 3PL contracts; supplier MSAs, SLAs, MOQs, lead times.
Brand/IP: trademarks, packaging/compliance (FDA/CE/claims), product liability insurance.

Quick answers:

Revenue or profit multiple? Mostly EBITDA/SDE; revenue multiples appear for larger brands with strong margins and retention.

Do subscriptions matter? Yes—predictable revenue lifts multiples; so do wholesale/Amazon if margin‑accretive.

What improves my multiple fastest? Better contribution margin, lower CAC, reduced returns, SKU rationalisation, and supplier terms that improve cash conversion.

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How Long Does a DTC Exit Take? (Typical 3–5 Month Timeline)

Phase	Weeks	What Happens
Preparation	2–3	Normalise financials & analytics; assemble docs; create CIM; data room setup.
Outreach & IOIs	2–3	Targeted buyer list; NDAs; teaser/CIM distribution; initial Q&A (niche & channel fit).
LOIs & Negotiation	2–3	Term negotiation (price, structure, inventory mechanics); select preferred LOI.
Due Diligence	4–6	Financial, legal, ops & supply‑chain; product safety/compliance; customer/ref checks.
Closing & Handover	1–2	Legals, funds flow, inventory/cash adjustments; brand/IP & account transfers; transition plan.

Timelines vary by deal size, data quality, and buyer type. Clean books, reconciled ad data, and a complete data room compress time‑to‑close.

DTC Brand Sale Process (Step-by-Step)

Preparation: normalise financials, verify analytics (Shopify/Amazon, CAC/LTV, cohorts), review contracts, IP, compliance.
Packaging: CIM/teaser, KPI deck, and secure data room.
Buyer Outreach: confidential, thesis‑based approach to qualified buyers; NDAs first.
Offers & Negotiation: manage Q&A; align on price, structure, and inventory/working‑capital.
Due Diligence: coordinate financial, legal, and operational/supply‑chain diligence.

IOI vs LOI: What’s the Difference?

IOI (Indication of Interest) is a non‑binding price range and high‑level terms used to shortlist buyers. LOI (Letter of Intent) sets a specific price/structure, exclusivity period, inventory/working‑capital mechanics, and key conditions; it is still largely non‑binding except for exclusivity, confidentiality, and certain clauses.

Closing & Handover

Post‑LOI, definitive agreements are drafted (SPA/APA), schedules completed, working‑capital and inventory adjustments finalised, funds‑flow and escrow arranged, and brand/IP/accounts transferred. A clear transition plan reduces post‑close risk.

Due-Diligence Checklist & Data-Room Index

Financials: last 24–36 months P&L/BS/CF; margin waterfall; revenue recognition; channel P&L.
Analytics: Shopify & Amazon exports (AOV, cohorts, repeat rate, subscription metrics), returns/chargebacks, ad accounts (Meta/Google/TikTok) reports.
Legal: incorporation, cap table, supplier & distributor contracts, trademarks, product claims/compliance (FDA/CE/label), product liability insurance.
Ops: 3PL contracts, inventory reports (current/aging/turns), landed cost build‑ups, SOPs, quality/complaints log.
Commercial: wholesale agreements, price lists, retail/marketplace terms, top SKUs with unit economics.
HR/Operations: org chart, contractor agreements, SOPs, content/UGC licences.

Deal Structures & Terms

Element	What it is	Pros	Considerations
Asset vs Share	What the buyer purchases	Asset: cleaner; Share: simpler continuity	Tax impact; liabilities; contract assignment; warranties/claims
Earn-out	Deferred, performance‑linked	Bridges valuation gaps	Metrics (EBITDA, revenue, MER); control; reporting
Seller Note	Vendor financing	Faster close, better price	Interest, security, covenant terms
Escrow/Holdback	Funds reserved post‑close	Protects against surprises	Duration, claims process

Working Capital & Inventory Adjustments

Expect a normalised working‑capital target at close. For DTC, inventory, customer pre‑payments/gift cards, unfulfilled orders, and chargebacks/returns provisions must be clearly treated to avoid double‑counting or cash shortfalls. Define mechanics in the LOI.

Taxes & Legal Basics

Jurisdictions: tax outcomes differ (US/UK/EU). Obtain specialist advice early.
IP & Assignability: ensure chain‑of‑title, trademarks, packaging & label compliance, distributor agreements.
Data & Security: customer data (GDPR/CCPA), PCI, platform T&Cs; ad & email list consent records.
Non‑compete/Non‑solicit: scope, duration, and geography matter.

This is not tax or legal advice. Engage qualified advisers in your jurisdiction.

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Who Buys DTC Brands?

Strategic Buyers: CPG/e‑commerce brands and retailers seeking category expansion, omni‑channel synergies, and cross‑sell.
Financial Buyers (PE/Roll‑ups): disciplined underwriting, aggregator or platform plays, structured deals.
Entrepreneurial Acquirers/Search Funds: operators looking to professionalise ops, expand channels, and scale SKU mix.

Broker Fees vs DIY

Path	Typical Cost	What You Get	When It Fits
Brokered	Commission (tiered) + minimal upfront	Packaging, buyer network, negotiation, DD coordination, inventory/working‑capital mechanics	Limited time, larger buyer pool, price protection
DIY	Low fees; high time cost	You run outreach, Q&A, negotiation, legals, analytics & ops verification	Very small deals; existing buyer already sourced

Best Time to Sell a DTC Brand

Sell into momentum: clean books, durable revenue growth, strong contribution margin, stable CAC/MER and repeat rate, diversified channels, and healthy inventory turns. If metrics are soft, a 2–3 month tune‑up (SKU rationalisation, supplier terms, CAC cuts, returns reduction) can lift multiples.

Online Business Brokerage Services

DTC Brand Sale Brokerage & Exit Advisory

We guide founders through the full sale — from financial and analytics preparation to targeted buyer outreach and closing. Commission‑based; aligned with your outcome.

DTC Brand Valuation & Exit Planning

Get an AI‑powered, confidential valuation within 24 hours and a focused plan to lift multiples (margin, CAC/LTV, repeat rate, channel mix, ops).

Buy‑Side Advisory & Acquisition Search

For investors and acquirers: retained search, thesis‑matched brand deal flow, modelling and diligence support to reduce risk and speed to close.

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Case Studies (Anonymised)

Profile	Size	Outcome	Structure	Time to LOI
DTC – beauty	$2.2m EBITDA	~6.1× EBITDA range	Cash + 18‑mo earn‑out	6 weeks
DTC – fitness accessories	$1.1m EBITDA	~5.0× EBITDA range	Cash + seller note	8 weeks
DTC – home goods	$650k SDE	~3.4× SDE range	Asset purchase	5 weeks

Illustrative examples; actual outcomes depend on metrics, risk, structure and market conditions.

About Our AI-Native Brokerage

We specialise in DTC and online brand M&A with AI‑assisted valuation models, buyer matching, and data‑room standards that speed diligence and protect price. Work is confidential, document‑first, and founder‑friendly.

Partnership Programme

Advisers, accountants, and operators can refer founders ready to exit. Earn partner fees while we deliver valuation, packaging, and deal execution.

Learn more about partnerships

FAQs – Selling a DTC Brand

How long does it take to sell a DTC brand?

Most sales complete in 3–5 months from preparation to close, depending on size, margin profile, buyer fit, inventory complexity, and data‑room readiness. See the sale process.

How much is my DTC brand worth?

Valuation is typically a multiple of EBITDA or SDE, adjusted for growth, gross & contribution margin, CAC/LTV & MER, repeat rate/subscriptions, channel mix (Shopify/Amazon/Wholesale), returns/chargebacks, supplier risk, and brand/IP strength. We produce a defensible range using AI‑assisted comps and sensitivities.

How do you value a DTC brand (methodology)?

We use AI‑assisted market comps plus metric drivers (contribution margin, CAC/LTV, MER/ROAS, repeat rate, channel mix, returns) to produce a range with sensitivities. Details in How Valuation Works.

What documents do I need for due diligence?

Clean financials; Shopify/Amazon exports (revenue, AOV, cohorts, repeat rate); Ad accounts (Meta/Google/TikTok) reports; supplier & 3PL contracts; trademarks & product compliance; returns/chargebacks; inventory reports; SOPs. See process and value‑maximising prep.

How are revenue and margins verified?

Via direct platform exports (Shopify, Amazon), payment processors, and bank statements; margin waterfall reconciliation (COGS, fulfilment, variable marketing) plus cohort and returns analyses.

Do I need audited financials?

Not always. Accurate, verifiable books with reconciled revenue and consistent KPI reporting are usually sufficient; larger deals may request reviews or audits.

What are typical business broker fees?

Success‑based commission (sliding by deal size) is standard. Some brokers charge optional upfront fees for valuation/exit‑readiness deliverables that reduce time‑to‑close.

How do you keep the sale confidential?

NDA‑gated data rooms, anonymised teasers, and targeted outreach to vetted buyers only. Brand identity and sensitive data are disclosed in stages.

What deal structures are common (cash vs earn‑out)?

A mix of cash at close plus earn‑out or deferred elements tied to EBITDA, revenue, or MER/ROAS targets is common; structure depends on risk, growth, and buyer type.

Asset sale vs share sale — what’s the difference?

Asset sales transfer selected assets (trademarks, domains, customer data where permitted, inventory) and liabilities; share sales transfer the company as a whole. Outcomes vary by tax, liability, and operational continuity. Seek professional advice.

How are IP and accounts transferred?

Through an agreed handover plan: trademark assignment, domains, Shopify/Amazon admin access, pixel/ad accounts, email list ESP access (with compliant consents), and vendor portals — sequenced to avoid downtime.

What support am I expected to provide after closing?

Typically a short transition and knowledge transfer period (weeks to months) defined in the APA/SPA; may include training, supplier introductions, and SOP handover.

How can I increase my valuation before going to market?

Lift contribution margin, cut CAC, improve repeat rate/subscription share, reduce returns/chargebacks, secure supplier terms, and tidy IP/compliance. Even small CM or CAC improvements can move your multiple. See value maximisation.

Should I fix issues first or sell as‑is?

Fix high‑ROI items (data quality, margin leaks, risky supplier terms, compliance) before launching; large rebrands or product overhauls rarely pay back pre‑sale. We’ll model the impact either way.