Frequently Asked Questions
If you still have unanswered questions, please do not hesitate to contact us personally.
1. I would like to finance the purchase through a bank. How much equity do I need?This depends very much on the type of financing. We recommend to have at least 20-30% available as equity capital.
2. How does the brand transfer work on Amazon?
If it is an asset deal where only the brand is sold, the Sellercentral account usually cannot be transferred to the buyer. This means that the buyer needs his own account.
If the seller stores the goods in Amazon’s shipping centers (FBA), the products must be retrieved from the warehouse via return order and, if necessary, labeled with the buyer’s barcode. Afterwards, the products can be sent back to Amazon via the buyer’s Sellercentral account. Since the buyer is then the sole seller and new brand owner, he automatically gets the write permission for the listings.
All ratings and rankings are thus preserved.
3. What is EBITDA
We use the owner’s profit based on EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization), which is also called “Owner’s Cash Flow”. However, EBITDA often needs to be adjusted for smaller companies, as often a lower official EBITDA / net income is reported for tax reasons to reduce the tax burden.
To better illustrate this, we have a sample calculation at the following link:
4. Does the adjusted EBITDA include the salary of the managing director?Our calculation does not include the salary of the managing director. The reason for this is that everyone is paid a different salary. To enable better comparability, we have decided to adjust the salary for all companies. Other salaries of employees are of course excluded.
5. How is the evaluation of the listings madeWe have tracked and evaluated over 200 e-commerce transactions in the last 12 months. Thus, we know exactly which multiples are achieved on average in which price segment. In addition, we have daily conversations with investors to find out which criteria are important for them or what makes a company more valuable for them and what not.
1. What are the requirements to sell my business?
Your company should meet the following points:
- An annual turnover of at least 200,000€
- A margin of at least 10%,
- A sales history of at least 12 months
- A registered trademark Clean accounting with existing financial statements and BWA’s
2. What happens when I find a buyer myself.
A claim for commission does not exist if the contact between you and the buyer already existed before the publication of the offer, unless the contact is based on a previous mediation by Dragonflip.
You must provide us with these contacts for verification purposes before the listing is published. We confirm that no commission will be charged for the notified contacts. Otherwise, we must assume that the third party has become aware of the sales offer through the public advertisement and a commission claim arises. However, this is lower than our standard commission.
3. How much is the commission paid to Dragonflip?
Our commission for a successful sale is based on the amount of the achieved sales price.
For the calculation we use the Double Lehmann formula, which is the standard among business brokers and is calculated as follows:
10% of the first million €,
plus 8% of the second million €,
plus 6% of the third million €,
plus 5% from the fourth million €..
The minimum commission is 15,000€.
Example: A company is successfully sold via Dragonflip for 2.3 million €. The commission is calculated from:
10% of the first million = 100,000 €
8% of the second million = 80,000 €
6% of the third million = 18,000 €
So the commission is 198,000 € in total.
4. How can I increase the value of my business?
We have published a guest article on this topic at “Multichannel Rockstars”. You can read it at the following link: To the article
5. Who buys e-commerce companies
Depending on the selling price, different types of buyers act on the market. Currently, the distribution looks something like this:
Buyers in the price range < 500,000 €
- Buyers who buy a company for the first time (49%), entrepreneurs (30%), existing companies (19%)
- Motivation to buy a new job (52%) or horizontal expansion (21%)
Buyers in the price range € 500,000 – € 1,000,000
- Buyers buying a business for the first time (42%), existing businesses (33%), entrepreneurs (19%)
- Motivation to buy a new job (35%), horizontal expansion (25%) or vertical expansion (23%)
Buyers in the price range €1,000,000 – €2,000,000
- Existing businesses (34%), entrepreneurs (34%), first time buyers (21%)
- Motivation to buy a new job (38%), horizontal expansion (31%) or better ROI than other investments (24%)
Buyers in the €2,000,000 – €5,000,000
- Existing businesses (45%), first-time buyers (25%), entrepreneurs (15%),
- Motivation to buy a new job (40%), horizontal expansion (30%), or better ROI than other investments (20%)
Buyers in the price range € 5,000,000 – € 50,000,000
- Investment companies (48%), Existing companies (36%)
- Motivation to acquire a horizontal expansion (79%) or better ROI than other investments (14%).