Overview

This is a France-based direct-to-consumer travel products with its flagship product being a compressible/air-pumped travel backpack.

Financial snapshot (from seller / public data):

• Annual revenue: €283,160

• Annual profit: €248,517 (≈ 88% margin)

• Avg monthly rev: €23,596; avg monthly profit: €20,709

• AOV (reported): €136.00 (computed AOV = Revenue / Orders ≈ €127.84)

• Orders (total): 2,215 — Customers (reported): 5,723 — Email list: 5,603

• Asking price: USD $243,250 (≈ €206,022 using 1 EUR = 1.1807 USD)

Valuation multiples (based on asking price converted to EUR):

• Asking / Annual Profit ≈ 0.83x

• Asking / Annual Revenue ≈ 0.73x

Quick verdict: At face value the numbers show a very attractive short payback (asking price < annual profit). But the business is very young (1 year) and shows sharp dependency on viral/social spikes, unusual margins and a potential trademark issue around the AirVenture name all of which demand deep verification before proceeding.

Key insights (high-level)

1. Strong brand-first-mover storytelling. Product copy and the flagship product positioning are clear and consistent — the site markets a compressible travel backpack as the unique selling point.

2. High reliance on organic virality. The company reports daily content creation and that revenue spikes correspond with viral posts and Black Friday. This explains the big month-to-month swings in the monthly table (see Oct–Nov 2024 spikes). (Financial table shown above.)

3. Exceptionally high margin (88%) — verify. Margins this high in a physical-goods e-commerce business are uncommon and may reflect omitted costs (owner compensation, one-off income, or accounting treatment). Verify cost of goods sold, shipping, returns, fulfilment fees, advertising, and owner draw.

4. Customer & order data inconsistency. Reported orders = 2,215 while customers = 5,723 (and email list 5,603)  these numbers conflict (usually customers ≤ orders or orders ≥ customers). Request raw exports to reconcile.

5. External reputation mixed but mostly positive. Product page review counts and good product ratings exist; Trustpilot and site reviews show favorable product feedback but also shipping/delivery complaints.

6. Brand / IP risk — investigate immediately. The term “AirVenture” is used heavily on the product page and on marketing; however, “AirVenture” is a well-known registered mark associated with the Experimental Aircraft Association (EAA) and “AirVenture Oshkosh” (EAA) this could create trademark exposure depending on classes/territories and prior filings (potentially higher risk for US expansion). Legal clearance is required.

Detailed diligence:

1) Website performance & metrics (what we could observe + requests)

Observed (public):

• Modern product pages, clear imagery and video, social links and visible reviews good presentation and product-focused UX.

• Product page(s) show the AirVenture product with high review counts and sale price examples (public product pages).

Key metrics (missing / require seller documents):

• Website Speed: I did not run automated Lighthouse/GTmetrix tests during this review. Action: run Lighthouse & GTmetrix and request average page load time, TTFB, Largest Contentful Paint.

• Product variation / # SKUs: public collections show a small catalog focused on travel bags/accessories — based on site collections the SKU count appears limited (estimate: ~10–30 SKUs). Please request a confirmed SKU list & inventory sheet.

• AOV: Reported €136.00; computed AOV (total revenue / orders) ≈ €127.84 — small mismatch, needs reconciliation (discounts/refunds can explain). (See table above.)

• Customer Lifetime Value (CLTV): Not supplied. A quick proxy = annual revenue / customers = €49.50 per reported customer  this low figure and the customer/orders mismatch suggest the “customers” number may be subscribers rather than buyers. Request cohort LTV & repeat purchase frequency.

• Repeat customer rate / conversion rate / CAC: Not provided. Request GA4 (or Universal Analytics), ad account access, and merchant processor statements. Conversion rates & CAC are essential to scale with paid channels.

• Website design & brand: Solid, travel-first aesthetic; strong product demonstration; social proof present (site & external).

2) Financial reports (tabular) — summary & interpretation

(Interactive table shown above; below is the interpretation / highlights.)

Monthly pattern: Very small sales July–Sep 2024, major spike Oct–Nov 2024 (Black Friday + viral content), then tapering  classic virality-driven seasonality. See table above for month-by-month figures.

Margins & quality of earnings concerns:

Reported annual profit margin ≈ 88%. For a physical product e-commerce business that ships internationally, typical gross margins are much lower; either:

• COGS are booked unusually low (e.g., manufacturer billings not included), or

• Seller’s “profit” may reflect net of owner’s personal costs, or

• Many operating costs are being excluded (fulfilment, duty, warehousing, returns, marketing).

• Action: demand merchant processor statements (Stripe/PayPal), bank statements and supplier invoices to build a Quality-of-Earnings (QoE) workup.

Valuation math (converted):

• Asking USD $243,250 ≈ €206,022 (using 1.1807).

• Asking / Profit ≈ 0.83x (asking is ~0.83× last-12-month profit). Payback at reported profit ≈ 0.83 years (≈10 months). That’s attractive on paper but only if earnings are verified and sustainable.

3) Marketing (Paid & Organic)

Organic (strength): Seller reports daily high-quality content, social posting and viral hits producing several million views — this drives a large portion of traffic and sales. Social channels and content cadence are visible on the site.

Paid (opportunity): Minimal paid presence reported (opportunity): paid amplification + prospecting funnels (Facebook/IG/TikTok + Google) could smooth seasonality and reduce dependence on virality. Expect to invest to scale—need CAC & ROAS history to model paid scaling.

Efficiency: Unknown  no ad spend, ROAS, or Google Analytics data provided publicly. Request ad account access & past campaign performance.

4) Operational efficiency

Observed / reported:

• Operational model appears lean; seller estimates 10–15 hours/week to maintain content & social posting. This suggests owner-intensive content creation rather than automated operations. (Seller-provided.)

• Fulfilment: shipping complaints in reviews indicate occasional delivery issues / late shipments check fulfillment provider, shipping SLA, lead times and international shipping costs.

Action items (ask seller):

• Fulfillment workflow (in-house or 3PL), shipment lead times, average shipping cost per order, returns rate, refunds processing time, inventory aging report, supplier lead times / minimum order quantities, current stock levels and replacement cost.

5) Customer data & relationships

Public evidence: Good product reviews on product pages; external Trustpilot shows mostly positive product sentiment with some delivery complaints.

Gaps / requests:

• Raw customer export (orders with emails, timestamps, LTV, refunds, chargebacks).
  
  

• Cohort retention analysis (30/60/90-day repurchase rates).

• Email list health: active subscribers, open/click rates, unsubscribe and bounce rates.

• CS tickets: number, common issues, resolution time.

6) Legal & compliance due diligence

Items to verify immediately:

• Trademark/IP risk: The use of “AirVenture” in commerce is potentially problematic because EAA (AirVenture Oshkosh) has well-known trademark usage; if the mark is registered in overlapping classes or jurisdictions this could hamper U.S./global expansion or lead to takedown demands/cease-and-desist. LEGAL ACTION: get trademark clearance (EU, FR, US, WIPO, and key markets).

• Consumer law / returns / VAT: Verify VAT registration, historical VAT filings, and that returns policies meet French/EU consumer law.

• Privacy/GDPR compliance: site lists policies publicly verify data processing agreements, cookie consent and DSAs if a processor/3PL handles personal data.

• Contracts & IP assignment: ensure product designs or formulas (if any) are assigned, supplier contracts exist, and no outstanding litigation.

Challenges identified (summary)

1. Sustainability of earnings — heavy reliance on viral organic posts and a single product narrative leads to volatility.

2. Unusually high profit margin — warrants QoE to rule out omitted expenses or one-off items.

3. Data inconsistencies — customers vs orders vs email list mismatch  must reconcile.

4. Legal/IP risk — using the “AirVenture” name may invite conflict with EAA or other rights holders.

5. Fulfillment / delivery complaints — some buyers report late delivery/refunds, which could limit international expansion.

6. Single-channel concentration — organic social is the main engine; lack of diversified paid channels increases downside if organic reach drops.

Recommendations & next steps (practical, prioritized)

Immediate due diligence checklist (must-have before closing)

1. Quality of Earnings (QoE) — merchant processor statements (Stripe, PayPal), 12 months bank statements, VAT returns, profit & loss with line-item COGS and marketing spend.

2. Traffic & conversion proof — GA4 (or UA) access and Shopify/Shop system analytics; provide sessions, conversion rate, traffic sources and top landing pages for last 12 months.

3. Customer dataset & cohorts — full order export (order id, date, product, gross/net, shipping, returns/refunds), customer export, lifetime value by cohort.

4. Supplier & inventory — supplier contracts, lead times, current inventory valuation, production costs, MOQ, and any deposits.

5. Ad & email accounts — access to ad accounts and email provider (Klaviyo/others) for campaign history & metrics.

6. Legal/IP check — trademark search (EU/FR/US), proof of any trademark registration for product names, proof of ownership for brand assets, and any cease-and-desist history. If AirVenture creates risk, insist on legal indemnity or rebranding plan.

Commercial / negotiation suggestions

• Structure the deal to protect buyer: include an escrow/holdback or an earn-out tied to verified revenue for the first 6–12 months (e.g., 20–30% holdback for 12 months).

• Price floor: given one-year history and viral-dependence, consider negotiating initial offer below asking (e.g., 0.6–0.75x reported profit) with additional earn-out for verified sustained earnings. If QoE confirms sustainability, release additional payment.

• IP contingency: if trademark search raises clear conflict, tie purchase price adjustments or seller indemnities to IP-clearance results.

Growth opportunities (if purchase proceeds)

• Paid amplification funnel (convert viral content into paid scaling with lookalike audiences & TikTok/IG prospecting).

• Product bundling & consumable accessories to raise purchase frequency and AOV.

• Wholesale / B2B travel retail — partner with travel retailers or airlines.

• Internationalized sites (EN/FR/DE) + localized shipping to expand into EU/NA while testing markets with paid campaigns.

Conclusion — buy, pass, or dig deeper?

• Do not close sight-unseen. The paper math is very attractive (asking price < annual profit), but the combination of (1) one-year operating history, (2) extraordinary margins, (3) heavy dependence on virality, (4) data inconsistencies, and (5) potential trademark exposure justifies intensive verification.

• Recommended action: Proceed to document-stage diligence (QoE, legal clearance, traffic & merchant verification) and only then decide on final offer structure. If QoE/legal checks pass and revenue is verified, the deal can be rationalized at or near asking price; if not, use the risks to negotiate a lower upfront and add earn-out protections.

Final — Things you must request from the seller

1. Merchant processor statements (Stripe/PayPal) last 12 months.

2. Bank statements (company accounts) last 12 months.

3. Shopify (or platform) CSV export of all orders and customers.

4. GA4 / Analytics & Search Console access.

5. Ad account access (Facebook/Meta, TikTok, Google) and spend/ROAS history.

6. Inventory report and supplier contracts (cost per SKU, MOQs, lead times).

7. VAT/tax filings & incorporation documents.

8. Legal/IP docs (any trademark filings, registered marks, cease-and-desist history).

9. Fulfilment/3PL contracts and shipping SLA performance metrics.

10. Reason for sale and staff/owner time breakdown (confirm estimated 10–15 hrs/week).