Thanks to its unique assortment, the store had a stable loyal audience that continues to make purchases even 1-2 years after the first order. Nevertheless, maintaining the current range required significant expenses that were not covered by the proceeds of $2M a year. There was a need either for marketing investments to significantly expand the client base or for a strategist with enough traffic to generate a sharp increase in revenue without adding up advertising costs.
Business: Revenue of $2M a year, negative profit, more than 3,000 orders per month.
Deal: 75% cash-out sale to a Russian strategist.
Deal Industry: Internet
Deal Type: Sale the company