Eco-Friendly Laundry Detergent Sheets Brand

Brand Overview / Why We Loved It

This was a niche e-commerce brand producing eco-friendly laundry detergent sheets , lightweight, zero-waste, and subscription-based. The sustainability trend was accelerating, and consumer demand for plastic-free household products was growing at double-digit annual rates. The brand already had a loyal base of repeat subscribers but had been under-leveraged due to operational inefficiencies.

What made this brand particularly attractive:

• Strong subscription backbone with high potential LTV.

• Passionate, engaged online community on Instagram and TikTok advocating for eco-living.

• Clear product-market fit with limited competition in high-quality detergent sheets.

• Easily scalable through product bundles and seasonal SKUs.

Due Diligence Findings / Unique Challenges

While promising, the brand faced multiple red flags that ultimately created our acquisition leverage:

1. High Subscription Churn (~30%) – Customers frequently canceled after 2–3 shipments because the subscription emails were generic, unpersonalized, and failed to communicate value.

2. Overpriced & Inefficient Marketing (~20% ad waste) – The seller relied on broad Facebook and Google campaigns without audience segmentation, retargeting, or lifecycle tracking.

3. Limited SKU Variety – Competitors were bundling multiple products to increase AOV, while this brand had only single SKUs, limiting upsell potential.

4. Desperate Seller Timing – The owner was launching a new product line and needed immediate cash, creating an urgency window.

These inefficiencies weren’t deal-breakers; in fact, they were opportunity levers. They allowed us to negotiate a substantial discount while setting the stage for fast growth post-acquisition.

Negotiation & Purchase

• Asking Price: $142,350

• Negotiated Purchase Price: $102,560 (saved 28%, $39,790)

• Profit Multiple Paid: 1.0x annual profit ($102,564)

Why it worked:

• We positioned the negotiation around operational weaknesses (high churn, wasted ad spend, lack of SKU strategy).

• The seller was under time pressure to raise funds for a new product launch, giving us leverage to secure a below-market price.

• With an average market multiple for subscription-based household brands at 1.3–1.5x, we acquired it at a true bargain, immediately creating investor upside.

Strategic Actions / What We Did

1. Subscription Lifecycle Overhaul

• Built fully automated email & SMS flows targeting onboarding, retention, and post-purchase upsell.

• Personalized messages increased engagement and reduced churn from 30% → 12%.

2. Product Bundling & Seasonal SKUs

• Launched seasonal bundles (e.g., spring cleaning kit, family pack) to increase perceived value.

• Average Order Value (AOV) increased by 18%, unlocking higher profit per customer.

3. Marketing Optimization

• Segmented Facebook/Google audiences to reduce wasted spend (~27% lower CAC).

• Implemented retargeting and lookalike campaigns, boosting ad ROI and ROAS.

4. Lean Operations Team

• Onboarded a 3-person remote team to handle marketing, fulfillment coordination, and customer support.

• Lean structure allowed scalable operations without significant overhead.

Observations:

Here’s what sets this case apart: we discovered a hidden distribution arbitrage. During diligence, we noticed the brand’s main supplier offered wholesale pricing tiers that weren’t being leveraged for B2B channels. By simply opening small bulk deals with eco-friendly retail stores and boutique gyms, we unlocked a new revenue channel without additional product development costs.

This created a dual growth path:

1. B2C subscription expansion via email + bundles.

2. B2B bulk sales to stores, offices, and eco-conscious co-working spaces.

Even a conservative rollout of this B2B channel increased monthly profit by 15–20% within 3 months.

Results / Exit

• Monthly Profit: $8,547 → $12,462 in 9 months

• Annual Profit: $102,564 → $149,544 projected after full scaling

• Payback Period: 12 months

• Projected Exit Price: $246,154 (2.4x multiple)

If the brand were sold today, investors could realize over 140% ROI on a $100k+ investment in under 18 months , all while keeping a recurring cashflow operation running in parallel.