Executive overview

This is a France-based D2C beauty & wellness brand (founded 2023) focused on a hero at-home facial device (SkinRevive / Renovare Pro / SkinRevive Pro) plus a compact skincare line (serums, creams, oils). The brand claims high customer satisfaction on Trustpilot and has built a small but engaged following on social channels. The Flippa listing (summary provided to us) states ~€139k annual revenue (TTM), ~21% net margin, ~5,100 customers and an AOV ≈ €80. The store runs on Shopify, uses a 3PL in Paris, and ships primarily to French customers (≈90% traffic from France). The public site and merchant reviews show a validated product/market fit at least in France and neighbouring markets.

Key Facts (Public/Observed):

• Homepage & product mix: device + concentrated skincare range; visible product cards for ~10–20 SKUs on the storefront (device, oils, serums, creams, SPF, cleansing mousse, gift cards). This is a compact catalog that supports cross-sell and refill purchases. (site review).

• Reputation: Trustpilot merchant page shows multiple recent reviews and predominantly positive sentiment (4+ star ratings on French Trustpilot page).

• Third-party distribution: Product appears on marketplaces (example: Amazon UK listing for SkinRevive Pro); indicates broader distribution channels beyond the site.

• Regulatory footprint (risk): Home-use beauty devices sit in a borderline regulatory area in the EU. Some beauty devices are treated as medical devices depending on claims and mechanism (EU MDR / Annex XVI considerations). This is an area requiring immediate verification for CE compliance / classification and documentation.

Note: financials, traffic splits and subscriber counts below are taken from the Flippa summary and your research notes (we treated them as seller-provided public data for this report).

Website Performance & Metrics (What we can verify + estimates / gaps)

Observed (Public)

• Site platform: Shopify (modern, easy to migrate).

• Front-end issues: the site HTML shows some liquid errors visible on the product cards (e.g., missing asset snippets). These manifest as small UI defects and can harm conversion if not fixed. (observed on site HTML).

• Multiregion / multi-currency: The site appears configured for many countries/currencies. This is good foundation for expansion.

Missing/Not Provided (Must Request from Seller):

• Real GA/GA4 metrics: sessions, unique visitors, traffic sources by channel, bounce rate, pages/session, sessions per month.

• Conversion rate (site): not disclosed. Typical small D2C beauty stores range 0.7–2.5% depending on traffic mix; with a known hero device + organic traffic, a reasonable working estimate is 1.0–1.8%, but this is only an estimate.

• Repeat purchase rate / cohort LTV: number of repeat customers and CLTV are not shown. Flippa/your notes list 5,111 customers and 2,057 orders → implied repeat purchase behavior low/medium (2,057 orders / 5,111 customers ≈ 0.40 orders per customer historically), which suggests either low repurchase frequency or much of the customer base are single-order device buyers. (this requires confirmation).

• AOV: provided as €80 (useful). (seller data).

• SKU count / inventory depth: inventory included listed as $4,489 (seller). Visible SKUs on site are modest (device + ~10–20 SKUs).

Quick Implications (UX & CRO):

• Liquid errors and out-of-stock messaging (we observed “Épuisé”) can interrupt buying flow. Fixing theme errors + clear restock dates should be prioritized to recapture demand.

• With AOV €80 and a hero device, implement deterministic post-purchase subscription / refill flows to increase repurchase and LTV.

Financials (From Flippa / Seller data you supplied):

(TTM ended May 2025 / your provided figures)

• Revenue (TTM): $163,516 (~€139,413)

• Gross Profit: $34,273 (implied gross margins; check breakdown)

• Average monthly revenue: $13,625 (~€11,617)

• Average monthly profit: $2,856 (~€2,435)

• Profit margin: 21% (healthy for a 2-year D2C)

• Valuation on listing: 2.1x profit → $71,973 (your note: 1.9x profit elsewhere; either way listed multiples are conservative)

• Customers: 5,111; Orders: 2,057; Email list: 3,200–4,612 (two differing numbers in summaries. Clarify).

Interpretation: 21% net margin at this scale is good (suggests lean operations (dropship + small 3PL stock). However, revenue is modest and multiples are conservative (0.4–0.5x revenue; ~1.9–2.1x profit); typical for an early stage brand where growth must be proven.

What to validate immediately with seller:

• GA/Shopify revenue reconciling with bank statements or Stripe/Psp reports (last 6–12 months).

• COGS breakdown per SKU, returns/% of revenue lost to refunds, net profit after ad spend.

• Monthly revenue & profit for the last 6 months (Flippa snapshot was TTM to May 2025; seller had also paused restocking recently which could distort trailing months).

Marketing (Paid & Organic)

Stated marketing mix (From Flippa summary):

• Organic Social: 34%

• Organic Shopping (SEO/product): 20%

• Paid Search: 18%

• Paid Shopping: 13%
  (these add to ~85%, presumably remainder is other channels / direct)

Strengths:

• Good SEO foundation: moderate backlink profile (147 referring domains / 632 backlinks, ~119 ranking keywords including high-intent French terms). This is strong for a young brand and a valuable asset to scale organic acquisition. (seller note).

• Trust signals (Trustpilot reviews) bolster conversion for a device purchase.

Weaknesses / Unknowns:

• CAC (Customer Acquisition Cost): Not provided. With AOV €80 and low historical order volume, CAC could be high for paid channels. You must request CAC by channel (Facebook/IG, Google Shopping, paid search) and breakdown of ROAS / CPA.

• Paid creative & funnel assets: Need to audit ad creatives, landing pages, and ad account structure. (not public).

Immediate marketing growth levers:

• Scale SEO content + link building in French (and localize for DE/IT/UK) to leverage existing ranking keywords.

• Activate subscription/refill models and device + consumables bundles to lift LTV and lower payback period for CAC.

• Test high-intent paid shopping campaigns (product set focused on devices + high-margin serums) and conversion rate optimisation (A/B hero, add urgency, testimonials near CTA).

Operational Efficiency & Supply Chain

• Fulfillment: stock stored in Paris with 3PL: Positive for EU fulfillment times. Inventory value included ≈ $4,489 (small buffer). (seller note).

• Mix of fulfillment models: combo of dropshipping + self-fulfillment. This reduces fixed inventory cost but increases potential shipping complexity and quality control risks.

• Supplier relationships: included in assets but need to verify supplier contracts, lead times, MOQ, price breaks, and contingency plans for device electronics. (request copies).

Operational risks

• Paused restocking before the sale is a red flag: Indicates potential cashflow/fulfillment interruption and lost momentum. The seller admits they paused restocks while preparing for sale (public). That must be quantified: how long paused and what backlog of customer demand exists. (seller note).

Customer Data & Relationships

• Email list: 3,200–4,612 (conflicting numbers in materials). Need to verify via platform snapshot (Mailchimp/Klaviyo) and check list hygiene, segmentation, and metrics (open, click, revenue per recipient).

• Social community: Instagram ~924, Facebook ~565, TikTok ~194 (small but active); organic social contributes materially to traffic per Flippa. (seller note).

• Reviews: Trustpilot shows many positive reviews. You could use these as baseline social proof.

What to request: list export (subscriber counts with timestamps), customer email cohorts (first purchase, repeat, average time to repurchase), subscription/cancel rates if subscriptions are running.

Legal & Compliance Due Diligence (High priority)

Immediate items to verify:

1. Regulatory classification / CE / conformity documents for the SkinRevive / Renovare Pro device. These help you determine whether the device has CE marking and the supporting technical file. If the product makes claims that could trigger medical device classification, seller must provide documentation proving compliance with EU MDR (or confirm it is purposely marketed as cosmetic/non-medical). This is a material legal/regulatory risk.

2. Product liability & insurance: confirm product liability insurance coverage limits and claims history. Devices pose higher product liability risk than lotions.

3. Supplier contracts & IP: supplier agreements, exclusivity on device design, OEM agreements, and any trademarks (brand name). Confirm transferability.

4. Returns/complaints & warranty policy: rates, disputes, chargebacks.

5. Data privacy / GDPR: verify privacy policy, cookie consent and how EU customer data is stored/processed (Shopify + analytics + email provider). Confirm any data processing agreements (DPAs).

6. Advertising claims compliance: review marketing materials for unsubstantiated medical claims; ensure copy is compliant with EU cosmetic/device rules.

Why this matters: device sales without correct CE/technical file or with medical claims can trigger product withdrawals or fines in the EU; material downside to valuation.

Opportunities & Upside (Realistic, deliverable levers):

• CRO uplift: fix theme errors, add restock pre-order flows, optimize PDPs. While these are low development cost, they can offer meaningful conversion lift. (observed errors on site).

• Repurchase & subscription: convert skincare consumables into subscription bundles (oil + serum refill) to lift LTV and reduce CAC payback.

• SEO & Content: scale French content, pillar pages around device use, before/after cases, and translate/localize for DE/IT/UK to expand EU reach (90% current traffic France). (seller note).

• Retail & wholesale: Approach pharmacies/spas and premium retail for the hero device; high margin channel and brand building.

• Affiliate / influencer partnerships: activate micro-influencers and affiliate program to scale sales while controlling CAC.

Challenges & Material Risks:

• Regulatory (CE / MDR) risk for the device: Potentially the largest single downside if documentation/claims are out of order. Immediate verification required.

• Low repurchase signal: Orders per customer imply limited consumable repurchase; device buyers may not buy refills frequently. Need to validate LTV.

• Small scale & founder dependence: Brand appears founder-driven and recently paused restocks; buyer must understand why founders are stepping away and whether team/ops are transferable. (seller note).

• Inventory & supply continuity: Small inventory on hand; risk if supplier lead times long or if device is imported with tariffs.

• Channel concentration: 90% traffic France and significant organic social; limited geographic diversification increases country-specific exposure (taxes, logistics, competition).

Valuation Notes & Multiples:

• Seller shows profit margin 21%, profit multiple ~1.9–2.1x and revenue multiple ~0.4–0.5x. For a 2-year old D2C brand these multiples are conservative; justifiable given company youth, single hero product dependency and regulatory questions. Show us verified revenue run rate and growth trend; if growth is stable and regulatory risk mitigated, multiples should expand.

Required Seller Documents/Data List (Next steps to validate)

Ask the seller to provide, ideally in the Flippa deal room / signed NDA:

1. Shopify + GA4 access (view only) or exports for the last 12 months (monthly revenue, sessions, conversions by channel).

2. Payment processor reports (Stripe / PayPal / bank) for 12 months; reconcile to Shopify.

3. Detailed P&L (monthly) for last 12 months and YTD.

4. COGS by SKU + supplier invoices (last 6 months) and supplier contact details + MOQs / lead times.

5. Inventory report (SKU, units, value, location) and 3PL contract.

6. Ad accounts access or screenshots showing spend, ROAS, creatives (Facebook, TikTok, Google).

7. Customer metrics exports: orders table, customers table, returns/chargebacks.

8. Klaviyo/Mailchimp export (email list with opt-in dates & segments; revenue by campaign).

9. Legal & regulatory docs: CE certificates / declarations of conformity, technical file for device, product liability insurance, warranty policy, supplier QC certificates.

10. Reason for sale & founder time allocation statement (written). They already stated personal reasons; confirm there are no underlying undisclosed business issues.

Tactical Recommendation (If client is interested):

1. Proceed to LOI (conditional) with a regulatory & financial audit clause. LOI should include a 30–45 day due diligence window specifically for: GA/Shopify verification, product technical file review (CE/MDR), supplier & insurance checks, and ad account performance validation.

2. Immediate red flags that would stop the deal: missing CE/technical file for device if device is classified as MDR subject; significant discrepancy between Shopify revenue and bank reports (>5–10%); high unresolved chargeback/return rates.

3. If purchase proceeds: allocate immediate budget to: (a) theme fixes and UX/CRO; (b) run paid shopping campaigns with early ROAS goals; (c) hire a regulatory consultant (EU medical device specialist) to verify compliance and labeling; (d) product roadmap to launch 2 new high-margin consumables within 6 months to lift LTV.

Practical Near-term Action Plan (60-day buy-and-scale checklist):

1. Obtain seller data list (items #1–#10 above).

2. Validate top-line financials and traffic (Shopify + payments reconciliation).

3. Technical health check: fix liquid/theme errors, ensure responsive UX and cart flows. (low cost, immediate uplift).

4. Regulatory audit: engage EU device compliance consultant to classify the device and confirm CE/DoC. (if gaps, negotiate price/escrow to cover remediation).

5. Marketing test: re-activate paid shopping with controlled budget and measure CAC / ROAS; launch 1 email flow for replenishment/subscription.

6. Inventory & supplier contingency: verify lead times and open alternate sourcing lines.

Final Assessment (Opportunity vs. risk):

• Opportunity: validated hero product in a high-demand niche, strong Trustpilot sentiment, SEO foundations and room to scale geographic reach and refill/subscription revenues. Low base revenue (~€140k) with 21% margin leaves meaningful upside from CRO, LTV lift and international expansion.

• Top risks: regulatory classification / documentation for the device, small scale / founder dependence, and current paused restocking. These are addressable but must be resolved in due diligence and priced into the acquisition.

Suggested Purchase Conditions (Examples)

• Price holdback / escrow for regulatory remediation (if CE / MDR documentation incomplete).

• Representations & warranties that the device complies with EU rules and there are no ongoing product liability claims.

• Earn-out tie to revenue growth if buyer is concerned about recent pause in activity.

Questions You Should Ask The Seller Now (To include in LOI):

1. Why specifically are you selling and what operational tasks remain that you were performing?

2. Provide last 6 months’ revenue and profit (monthly) and explain any drops/pauses.

3. Share CE / compliance documents for the device (technical file, Notified Body ID if applicable).

4. Provide CAC / ROAS by channel for the last 6 months.

5. Provide supplier contacts, MOQ and lead time for the device and top 5 cosmetic SKUs.

6. Confirm outstanding liabilities (returns, disputes, pending claims).

Citations & Public Resources Used:

• The business official site (product catalog, multi-currency config, site observations).

• Trustpilot merchant reviews: Customer sentiment & ratings.

• Product listings on marketplaces (example Amazon listing).

• EU Medical Device Regulation / borderline classification resources (risk of beauty devices being regulated under MDR; Annex XVI, manual).

• Third-party product review / analysis (example product review aggregated).