You’ve built a store. It’s making money. Now you want to know what it’s worth.
The problem? Most advice online is either too vague or too complicated.
Here are 15 FAQs, answered in plain English.
Quick Answers (Top 5 Most Common Questions)
1. How much is my store worth?
Take your annual SDE. Multiply by 2.5x to 3.5x. That’s your range. The exact number depends on your LTV, traffic sources, and how much the business depends on you personally.
2. What’s the most important factor?
LTV (Customer Lifetime Value). Stores with repeat customers sell for premiums. Stores where customers buy once and disappear sell for discounts. It’s that simple.
3. How do I calculate SDE?
Start with net profit. Add back owner salary, one-time expenses, and personal expenses. The result is SDE—the total cash the business generates for its owner.
4. What multiple should I expect?
Most stores sell for 2.5x to 3.5x SDE. Exceptional stores with high LTV and diversified traffic can push past 4.0x. Weak stores might struggle to get 2.0x.
5. Can I get a free valuation?
Yes. Get a free valuation here. It’s data-backed and takes a few minutes.
Advanced Valuation Questions
6. Does my Shopify theme affect value?
Indirectly. A bloated, slow theme hurts conversion rates and user experience. A clean, fast theme suggests a well-managed business. Buyers notice.
7. How important is my email list?
Extremely. An email list generating 20-30% of your revenue is a massive asset. Buyers value lists at $1-$3 per engaged subscriber.
8. Does seasonality affect my price?
Yes. Buyers look at trailing twelve months (TTM), not your best quarter. A store that makes 80% of its revenue in Q4 is valued on the full year, not the peak.
9. What if my revenue is growing fast?
Growth commands a premium. A store growing 10% month-over-month can sell for more than a larger store that’s flat or declining.
10. How do ad costs affect valuation?
High ad dependence is a risk. If 80% of your traffic comes from Facebook ads and those ads stop working, your revenue collapses. Buyers discount heavily for this.
Timing & Process Questions
11. How long does a sale take?
30 to 90 days is typical. Amazon FBA businesses sell faster. Shopify stores take longer due to tech transfer.
12. What documents do I need?
P&L statements, tax returns, bank statements, traffic analytics, and inventory records. Clean, organized documents speed up due diligence significantly.
13. Should I use a broker?
For deals under $500K, you can often sell privately. For larger deals, a broker provides access to qualified buyers and better negotiation leverage.
Risk & Red Flags
14. What are the biggest turn-offs for buyers?
- Messy books: If numbers don’t match, buyers run.
- Owner dependence: If the business needs you 60 hours a week, it’s a job, not an asset.
- Platform risk: Amazon accounts with policy flags are scary.
- Concentration: One product, one channel, one customer.
- Declining trends: Revenue that peaked last year and is sliding.
15. How do I increase my value in 90 days?
Boost LTV with post-purchase emails. Diversify traffic with SEO and email marketing. Document your operations. Clean your financials. Every improvement moves your multiple.
Know Your Number Before You List
