2025.03.03 - Online Biz Acquisition Opps

Rain Gear eCommerce Brand – $257K SDE – Asking $1M – 3.9x Multiple

Listing Type (?): Solid

A 12-year-old rain-resistant fashion brand selling stylish umbrellas, hats, and bags. The business operates through eCommerce and wholesale, with 30% of revenue from wholesale accounts. The company boasts strong gross margins (~75%) but a lower net margin (~25%), likely due to ad spend or high commission sales reps. Inventory and fulfillment appear to be outsourced.

✅ What I Like

• High Gross Margins – 75% gross margin indicates strong pricing power.

• Wholesale Channel – 30% of sales come from wholesale, adding stability.

• Outsourced Fulfillment – Asset-light and scalable.

• Viral Potential – Rain-resistant fashion is a perfect fit for influencer marketing.

• Proven Demand – $200K in sales in 4 hours from The Today Show proves mass appeal.

⚠️ Risks / Challenges / Questions

• Revenue Trend? – Is revenue stable or declining? No mention of recent growth.

• Brand Equity? – High-branded search volume could be a bullish indicator, but how strong is organic demand outside of spikes from media exposure?

• Overvaluation Risk – The Today Show revenue was included in valuation, but that exposure is not repeatable.

• Wholesale channel — seems a small portion of revenue for the way it is described in listing.

📈 Ways to Grow

• Leverage Social Media – Influencers and social ads are a no-brainer for visually appealing rainwear.

• Expand Wholesale – Further penetration into boutique stores, resorts, and gift shops.

• New Product Expansion – More fashion-focused rain-resistant products could boost repeat purchases.

[ View Listing]