Executive overview
This is a trademarked, UK-focused digital brand selling a single/lean line of automotive insurance “how-to” guides delivered instantly via Shopify. The business reports £74,623 revenue and £73,613 profit (12-month total) — a 99% reported net margin, ~162k sessions, ~4% site conversion, AOV £12, and ~8k customers. Social reach is strong for an organic playbook (Instagram ~24.6k, TikTok ~58.1k); an affiliate program (42 active partners) exists and the business claims zero refunds. The listing’s stated multiples are 2.1x revenue / 2.1x profit; asking price is USD $209,637 (the multiples imply an asking price of ≈£155–157k).
Key Facts & Headline Metrics (from supplied data)
Sessions (12 months): 162,000
Reported conversion rate: 4.0% → implied orders = 162,000 × 4% = 6,480 (actual orders reported 6,406, close).
Orders (reported): 6,406
Customers (reported): 8,637 (flag: customers > orders — see data quality below)
Average order value (AOV): £12.00
12-month revenue / profit: £74,623 / £73,613
Monthly average revenue / profit: £6,218 / £6,134
Reported profit margin: ~99%
Email list: ~7.6–8.0k (inconsistency across notes)
Social: Instagram 24.6k; TikTok 58.1k
Affiliate partners: 42 active (20% commission)
Asking price: USD $209,637 (listing multiples imply ~£155k)
Detailed Financials
Notes on financials
The monthly figures sum to the stated annual revenue/profit — consistent internally.
Implied orders × AOV = 6,406 × £12 = £76,872 (small mismatch vs £74,623). This is within normal rounding/discount/attribution noise but should be reconciled with raw Shopify payouts/merchant statements.
Valuation implied by the 2.1× multiples:
2.1 × revenue = £156,708
2.1 × profit = £154,587
→ both align to an implied GBP asking price ~~£155k.
Website Performance & Product Metrics (Assessment + Gaps)
Website speed / tech: not tested (no Lighthouse/GTM/GTmetrix data provided). Action: request access to GTMetrix/Lighthouse or run a speed audit. For conversion uplift, page load target < 3s.
Product variation & SKUs: single/high-focus digital product (step-by-step guide). Strength: simplicity. Risk: single-product concentration.
AOV & LTV: AOV £12.00.
Purchase frequency = orders / customers = 6,406 / 8,637 = 0.74 purchases/customer (this suggests data inconsistency — see below).
If interpreted as unique buyers < orders, then average buyer buys once (digital guide — likely a one-time purchase). Estimated LTV ≈ £8.90 (AOV × 0.742) using supplied numbers; in practice for single-purchase digital products LTV ≈ AOV unless upsells/subscriptions exist.
Repeat customer rate: not provided. The supplied counts (customers > orders) are inconsistent — needs verification. Repeat purchase strategy currently appears minimal.
Conversion rate & UX: reported 4% conversion which is strong for a digital impulse product; confirm via GA/Shopify funnels (landing → checkout → purchase). UX review recommended (hero, trust signals, friction points).
Brand positioning & sentiment: good organic traction and social reach; Trustpilot = 0 reviews (weak external social proof). Organic audience & affiliates are strengths; no third-party review presence is a missed opportunity.
Marketing efficiency & CAC: currently 0 paid acquisition (claimed). That means organic CAC ≈ £0, but any paid scaling will introduce CAC that must be compared against LTV. With current AOV (£12), paid acquisition economics will be tight unless AOV/LTV is raised or conversion is improved.
Product / marketing repositioning potential: high — options include tiered pricing (basic vs pro), upsell bundles, subscription for updates, or creating complementary digital products (appeal to same audience). Adding higher-ticket upsells or subscription will materially improve CAC tolerance.
5) Marketing (Paid & Organic) — Strengths & Growth Ideas
Current strengths
Large organic social reach (TikTok + Instagram) driving virality and acquisitions.
Affiliate network (42 partners) providing ongoing low-cost traffic.
Email list ~7.7–8k (undermonetized currently).
Opportunities to scale
Paid testing (small, data-driven experiments on TikTok/Meta/Google Search): run 3–5 creatives, target lookalikes, measure CPA.
Monetize email list: sequence, cross-sell, and promote limited-time upsells.
Affiliate expansion: recruit finance / car influencers in other English-speaking markets.
SEO & content: create long-form SEO articles to capture organic search around “how to lower car insurance” queries.
Product ladder: add a mid-tier (personalised audit) or membership for continuous updates — this raises LTV and CAC tolerance.
Paid acquisition modeling (illustrative)
Current profit per order ≈ AOV × margin ≈ £12 × 0.99 = £11.88.
Therefore max CPA to break-even ≈ £11.88 (current margin basis). Realistically target CPA well below that (£4–8) to leave room for reinvestment.
Example scenarios (assumptions: CPC / click→sale conv):
CPC £0.10, conv 2% → CPA £5 → profitable.
CPC £0.20, conv 1% → CPA £20 → unprofitable without upsell.
Conclusion: with AOV £12, paid channels are feasible but tight — LTV must be raised (upsell/subscription) for aggressive paid scale.
Operations & Efficiency
Reported hands-on time: 5–10 hours/week — highly automated.
No staff, no inventory: very low fixed costs; key operational dependencies are Shopify, email platform, affiliates, and social accounts.
Risks: single-operator knowledge, loss of social accounts or Shopify access, payment gateway disputes. Recommend documentation of SOPs, automation flows, and access handover plan.
Customer Data & Relationships
Email list: ~7.7–8.0k but numbers are inconsistent in notes — verify with email provider (CSV + signup dates + unsubscribe rate).
Customer CSV: request exports (orders, customer repeat purchases, refund flags, IPs, countries).
Data protection: as the business targets UK customers, GDPR compliance must be confirmed (consent records, privacy policy, data processing agreements, security).
Reviews: 0 Trustpilot reviews — immediate priority to begin collecting post-purchase testimonials and install a reviews widget.
Legal & Compliance Due Diligence (High-priority items)
Trademark: listing claims trademark (Class 12). Request certificates and scope (territories, dates, assignments).
Regulatory risk: the product is a “legal guide” about insurance savings — verify that content does not constitute regulated financial advice or act as an unlicensed intermediary. Buyer should obtain legal review (UK counsel) to confirm the guide’s wording, disclaimers, and marketing claims comply with FCA and advertising rules.
Consumer rights: confirm refund policy and that “0% refunds” matches consumer protection law (digital goods have specific cancellation rights).
IP & assignment: confirm all content, code, domains, social handles and affiliate contracts are owned or transferable.
Contracts: gather affiliate agreements, partnership docs, influencer agreements and any reseller terms.
Trust & Reputation (Trustpilot = 0)
Risk: 0 third-party reviews means external social proof is thin despite strong social following.
Opportunity: implement automated post-purchase review requests (Trustpilot/Google), add testimonials to product pages, and build case studies from high-value customers. This will materially increase conversion and CPA tolerance.
Challenges & Risks (Summary)
Single-product concentration — product concentration risk if demand wanes.
Data inconsistencies in the listing (customers vs orders; email list counts; conflicting annual revenue statements) — must verify.
Low AOV — constrains paid acquisition unless LTV raised.
Regulatory exposure — insurance/financial topic needs legal review.
Dependence on organic & social channels — algorithm changes or account loss is a scaling risk.
Short operating history / young business (launched 2022) — track record is limited.
Valuation premium vs risk — 2.1× may be high if growth levers are uncertain.
Recommended Pre-acquisition Data Checklist (Documents to request immediately):
Must have (before LOI/offer):
Shopify payouts (last 12–24 months) + Stripe/PayPal merchant statements.
Full Shopify orders CSV (all orders, customers, refunds).
GA4 access (or UA) and Search Console data for last 12 months.
Raw bank statements reflecting deposit flows.
Affiliate agreements & commission history.
Email platform export (subscribers, engagement rates, flows).
Trademark registration docs & IP assignment.
Copies of product (guide) and copy used in marketing.
List of social accounts with admin access evidence.
Terms, privacy policy, cookie policy, and any legal reviews performed.
Any complaints, chargebacks, or disputes.
Nice-to-have:
Creator/influencer partnership contracts.
SOPs for order handling, refunds, affiliate onboarding.
Access logs for admin accounts.
Valuation & Negotiation Strategy
Listing asks 2.1× revenue / 2.1× profit (implied ~£155k). Given the very high reported margin but short track record and single product concentration, recommend negotiating a structured purchase:
Initial cash at ~1.5–1.7× profit (≈ £110k–£125k) plus an earn-out (20–35%) tied to 6–12 month revenue or profit targets to capture upside if the buyer successfully scales paid channels.
Alternatively, pay ~£125k upfront (1.7× profit) + £30k–£40k deferred contingent on achieving agreed net revenue targets for 12 months.
Rationale: protects buyer from overstated sustainability while letting seller capture upside if business performs once paid channels are tested.
(If the buying committee prefers a single cash offer, insist on contract warranties & reps and increase holdback / escrow to cover indemnities.)
90-day Post-Acquisition Growth Roadmap (High level)
Phase 1 (Days 0–30): Verify & stabilize
Complete data audit (Shopify payouts, bank, GA). Transfer accounts & set up admin access backups.
Legal review of product copy & disclaimers.
Phase 2 (Days 30–60): Conversion & LTV
UX audit and conversion optimization (speed, trust signals, checkout flow).
Implement Trustpilot & automated review capture.
Add 1–2 immediate upsells or a “Pro” bundle to increase AOV.
Phase 3 (Days 60–90): Paid test & scale
Launch small, tightly tracked paid tests on TikTok & Meta (CPA targets set from model above).
Expand affiliate recruitment and implement performance incentives.
Begin content/SEO program for high-intent search queries.
Final Recommendation
Conditional acquisition recommended only after a thorough verification of the supplied financials, Shopify payouts, GA data, and legal review of product claims. The asset is attractive: proven organic demand, low operating friction, and clear scaling levers (paid ads, SEO, upsells). However, data inconsistencies, regulatory risk, and single-product dependence justify a conservative purchase structure (lower upfront multiple + earn-out / holdback). If the numbers verify and the legal review is clean, this business is a strong candidate for a marketing-led operator who can turn organic proof into paid scale and launch higher-AOV products.
Immediate Questions To Ask The Seller (To include in your initial diligence outreach):
Why are you selling? (motivation influences price and transition risk).
Please provide 12-24 months of Shopify payouts & merchant statements.
Provide admin access (read-only) to GA/Shopify/email for verification.
Confirm number of unique customers vs orders — explain why customers > orders in the listing.
Provide trademark registration docs and confirmation of IP assignment.
Any prior or current legal complaints, regulatory enquiries, or cease & desist letters?
Confirm affiliate agreements and the identities of top-3 affiliates and their contribution to revenue.
Quick Risk-mitigation Checklist (Buyer bedside):
Hold 15–30% of the purchase price in escrow for 6–12 months to cover misstatements.
Include a 12-month earn-out for growth upside.
Require representations/warranty insurance or seller indemnities for IP and compliance.
Require a 30–90 day transition period & knowledge transfer.
Closing summary
This e-commerce business is a compact, extremely margin-rich digital asset with proven organic demand and visible upside if it can be turned into a higher-LTV product suite and monetized with paid channels. The primary barriers to a clean buy decision are data inconsistencies, regulatory exposure given the insurance-adjacent content, and single-product concentration. If you can validate the Shopify/payout records, confirm GDPR/legal safety, and secure appropriate contractual protections (escrow/earn-out), this asset looks like a good fit for an operator with marketing muscle — particularly one who can raise AOV/LTV before committing heavy paid budgets.
