Exit Preparation For
Risk Analysis Results Summary

Your overall risk score

Dear ,

Your business's risk score is determined by dividing the number of answers classified as low/medium/high risk by the total number of answers

Low Risk
Medium Risk
High Risk
Click on each section to view our detailed analysis
 
Additional Considerations For Your Business
  • Supply chain

    Don’t be at risk of running out of stock. Running out of stock not only leaves “money on the table” but it also hurts BSR. Buyers are very hesitant to acquire companies with supply chain problems.

    Have a full SOP on supply chain management, knowing when and how much to order so you will not be under or over-stocked. Have a contingency plan for any possible production problems with your supplier or shipping issues. Explore working with multiple suppliers.

    Maintain lengthy and well-established relationships with your suppliers. Buyers become concerned with rocky or new suppliers.

  • Financials

    Make sure you have monthly financials prepared on an accrual basis by a bookkeeper and a CPA.

    Understand the methodology for your landed costs calculation.

    Review and make sure that all your ASINs are profitable at the desired margin.

    Understand your financials and be sure to follow revenue and expense trends.

  • Shipping

    Know that even if your shipping is transferred DDP (delivered duty paid), you are responsible for the accuracy of HS codes for duty and tariff payments.

  • Amazon’s ToS

    Buyers are very concerned with accounts that are not compliant with Amazon’s ToS. Being non-compliant will affect the attractiveness of your business.

  • Defensibility

    Buyers like to buy defensible assets with product uniqueness, low seasonality, repeating clients, and evergreen attributes.

  • Ad Spend

    Understand whether your ad spend is well managed. You can use an agency if needed.

    Consider increasing ad spend to improve sales when launching new products or after a listing suspension.

    Be aware of all innovations and consider using influencers, Amazon DSP, or other solutions that can drive traffic.

You are welcome to contact our team of experts to discuss your results and find ways to reduce potential risks in your business.

Frequently Asked Questions

While this tool gives you a good indication about certain potential risks of your business and its preparedness for due diligence, it is designed to provide initial guidance on risk analysis. It is not a substitute for a full review and professional consulting of all aspects of your business. This tool covers many of the fundamental risks faced by Amazon and other e-commerce businesses, but there are other potential risks that are not referred to by this tool. In addition, the results report and the recommendations included in it are based on an initial inquiry only. They are not intended to replace a thorough professional review and consultation about the specific matters related to your business on these matters.
The tool is based on Fortunet’s experience from providing consultation services for hundreds of deals, guiding Amazon and other e-commerce businesses through their exit paths. In any case, you should use the report generated by this tool as general guidance only, and you are advised to directly consult with the relevant experts about the matters raised by this report and on other potential risks of your business, which may not be covered by this report. Our team will be glad to recommend or refer you to relevant subject-matter experts.
This tool aims to help you assess certain risks of your private label business, grade the severeness of these risks, and give you an initial guidance about the potential roadmap to addressing such challenges. If you are a 7–8 figure brand looking to learn about your business’s market value or about other considerations related to the potential sale of your business, you can contact us here for a free consultation with one of our experts.
The tips and recommendations in the report should help you better understand certain significant risks your business faces and how you can potentially handle them. Depending on the risk types and severity, you are advised to speak with relevant advisors. Our team will be glad to recommend or refer you to relevant subject-matter experts.
To assess the quality and value of a business’s intellectual property during due diligence, the strength and relevance of the intellectual property portfolio (such as patents and trademarks) are assessed. The strength is generally determined by the level of coverage, including relevant geographic coverage and the products’ span and differentiation. IP protection is considered valuable if it provides a sustainable competitive advantage.

About Fortunet

Founded in 2018, Fortunet is a leading investment banking firm specializing in mergers and acquisitions (M&A) transactions for premium e-commerce businesses & Amazon FBA businesses.

Fortunet represents FBA businesses, DTC brands, and e-commerce SaaS as well as service providers such as agencies, all with a singular focus of maximizing outcomes for the client and an unwavering commitment to the success of each and every deal.

Meet the team

Disclaimer: This risk evaluation tool is not intended to serve as a substitute for a specific consultation about your business’s potential risks and how to address them. In addition, this tool does not cover all the potential risks that your business may face. This tool serves as an initial analysis for informational purposes only and should not be relied upon as a definitive risk assessment. Fortunet is not responsible for any errors or omissions in the use of the tool and does not guarantee the accuracy or completeness of the results. The use of the tool is at the user’s own risk, and Fortunet shall not be responsible or liable for any damages or any other consequences whatsoever resulting from the use of this tool and the content of the report generated by it.

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Omer Yacoby Levine

Director M&A

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Seasoned professional specializing in cross-border investment banking & business development between Israel and Asia & Europe regions.  

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