Unregistered brand
No trademark, or one owned by someone else.
Ecommerce business valuation
Ecommerce business valuation: the legal checks behind the price
A multiple is only as good as the facts behind it. We test the legal assumptions in the valuation and protect the price in the agreement.
Discuss Your AcquisitionOverview
Why legal risk changes what a business is worth
Ecommerce businesses are usually valued on a multiple of profit (often SDE or EBITDA). That multiple assumes the earnings are real, transferable and sustainable.
Legal issues can undermine each of those assumptions: a trademark the seller does not own, a supplier contract that ends on sale, a platform warning, or unpaid sales tax. We are not valuers, but we identify the legal facts that should move the price or the terms.
Get Legal AdviceWhat It Covers
Legal factors that affect ecommerce valuation
The issues buyers should test before agreeing a multiple.
Revenue and add-backs supported by platform data, bank records and accounts, backed by warranties.
Buyer Checklist
Legal red flags that justify a lower price
Unverifiable add-backs
Owner expenses and one-offs without evidence.
Contracts that end on sale
Change-of-control or non-assignable supplier terms.
Platform warnings
IP complaints, policy strikes or past suspensions.
Historic tax gaps
Sales tax nexus or VAT registrations never made.
Pending disputes
Customer claims, chargebacks or competitor complaints.
Our Process
How we protect the price you pay
FAQ
Frequently asked questions
Most are valued as a multiple of seller's discretionary earnings (SDE) or EBITDA, adjusted for growth, stability, channel risk and transferability. Financial advisers or brokers set the valuation; legal due diligence tests the facts behind it.
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Unsure if the price reflects the risk?
Tell us about the business you plan to buy and where the deal stands. We will explain the legal support you need.