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M&A Advisor on Ecommerce Valuations

Frank Kosarek, co‑founder of BizPort, explains that ecommerce valuations now hinge on seller discretionary earnings (SDE) rather than top‑line revenue, with multiples typically 2×–2.5× and up to 5× for subscription‑heavy brands. He notes that buyers prefer companies generating recurring sales, setting a practical entry point of $1 million annual revenue and attracting private‑equity interest around $30 million. Kosarek advises founders to track SDE monthly, maintain strong operational systems, and time exits before performance declines to secure optimal deal terms.