2025.01.18 - Online Biz Acquisition Opps

Supplement Biz Making $1.47 Million

Author

Corey Philip
January 18, 2025

This is a big one. Supplement brands like this have high margin and high scale. I know of many people making a small fortune in the supplement world.

Nutritional Supplement eCommerce Brand - $1.47M SDE - 3.5x

This 4-year-old premium supplement brand focuses on science-backed products targeting energy, focus, and longevity. With $3.48M in annual revenue and $1.47M in SDE, the business enjoys 60% YoY growth, a 39% net margin, and a high 61% recurring revenue rate from over 2,000 subscribers. Its customer base, primarily aged 40+, provides an impressive $400 customer lifetime value (CLV) and $100 average order value (AOV).

Operations are streamlined, with the owner working just 10–14 hours per week on inventory forecasting and deal negotiations, while a marketing agency handles ads and retargeting a 50,000-name email database. The business boasts a strong direct-to-consumer presence, with 90% of sales through its website. Growth opportunities include expanding the product line, testing marketplace platforms like Amazon or Walmart, and leveraging the existing loyal customer base for product development.

Asking: $5,140,000

Corey’s Take: This is an incredibly well-positioned business with fundamentals that investors love. The premium pricing allows for strong differentiation in a crowded supplement market while commanding higher margins. Catering to a 40+ demographic is particularly smart, as this group has disposable income and is willing to invest in long-term health solutions. Premium products also tend to attract more loyal customers, which is reflected in the remarkable 61% recurring revenue rate.

The recurring revenue and CLV speak volumes about the quality of this business. At this scale, a sticky, subscription-based customer base like this is rare and highlights the brand's strong product-market fit. I’d consider this a major strength.

The marketing setup, managed by an agency, is perfect for a buyer who isn’t deeply skilled in marketing. However, the key question is whether there’s room to expand onto new platforms or if the business is already maxing out its advertising potential. A "bear case" would be if ads are already running across all major platforms at scale, leaving fewer easy wins for a new owner.

The workload numbers are somewhat arbitrary. While the seller may only work part-time, a new owner should expect to spend full-time hours early on learning the business and optimizing operations. That said, the outsourcing of manufacturing to GMP-certified facilities ensures the product is entirely hands-off, leaving the operator free to focus on growth strategies rather than production headaches.

Expanding the product line is a natural growth channel. The existing customer base provides a low-cost testing ground—an email blast about a new product can quickly validate demand before a broader launch. Marketplace expansion into Amazon or Walmart is another clear opportunity. Moving a successful DTC brand into marketplaces is far easier than the reverse, and these channels could bring in additional high-margin revenue with minimal effort.

The 3.5x valuation feels justified given the recurring revenue, high retention rate, and premium positioning. For a buyer looking to invest in a scalable, high-margin eCommerce brand, this business represents an attractive opportunity with strong fundamentals and multiple avenues for growth.

Reply

or to participate.