You created an ecommerce product that is top of its category. You faced constraints, learned new skills and juggled every detail: supply, manufacturing, Shopify, Amazon, advertising, shipping, and the list goes on.
The progress is great, yet you feel like your brand can grow so much more if only you had the capital, technology, expertise and network to expand it.
That’s where our team of entrepreneurs-in-residence comes in.
Whether you want to exit your business, partner with us to further grow it or test out your new product ideas in the market, we have options every step of the way so that you feel you have taken the most beneficial decision for you.
Your brand reaches new heights
Every buyer on this market claims to offer a fair valuation, a fast acquisition process as well as a rewarding exit. CINCHONA offered us all these and much more. As David (my co-founder) and I had more product ideas, the CINCHONA team gave us the mentorship and resources to prototype, test and launch a completely new product - from taste tests all the way to new packaging, branding and special offers. After the acquisition, we stayed as partners in this business and CINCHONA made sure to enhance our identity as innovators in the coffee market.
As our company expanded into two different categories (food and education), I was deeply impressed by how agile the CINCHONA team was at understanding these areas and upgrade the narratives of our brands in ways that appealed to new customer segments. It takes more than PPC advertising to grow a brand on and off Amazon and the brand builders at CINCHONA showed me what it means to treat a product as entrepreneurs themselves. We worked as partners after the acquisition to reach new channels and markets for the brands I created and, due to their performance, the earnouts exceeded my initial expectation.
Frequently answered questions
While Amazon is the number 1 ecommerce platform in the world right now and we value its distribution power, we see the greater advantage in spotting the underdogs who are going to be champions next season. And this can be done only by discovering brands that have the potential to grow within their Amazon category as well as on other ecommerce channels and more. So reach out to us if you feel your brand has what it takes to - as we like to say it - grow across geographies and generations.
We look at profits first and foremost as this is the best indicator of your brand’s evolution so far and its potential in the markets it has been trading in. We scout for businesses that have a revenue in the range of £500,000 and above and at least £120,000 and above in SDE / Profits. But if you're brand is on the up and up, we’ll take a look at any great business.
Depending on the size of the business at the moment of the first interaction with its founder(s), we have been acquiring ecommerce brands in a range of 3 to 5x profits (and, in certain cases, even more depending on how well you have grown your brand).
And remember: we do not only acquire. We invest in ecommerce brands and partner with their founders in a multitude of ways to grow the businesses.
The more information you can give us about your business, the better.
Ideally, we’d love a detailed P&L, an established history of PPC spend (pulling historical reporters beyond just the 60-90 day limit in brand analytics), an idea of your pricing strategies, information about your suppliers and compliance with FDA standards, etc.
But if you don’t have all of that readily available, we have teams that can help you get a complete picture of your business.
We generally like businesses that are doing 50-100% of their sales via Amazon.
That said, if you have a great business that is doing a significant amount of D2C sales, we will look at those, too!
Yes, the majority of our deals have an upfront payment component. We customise each deal so that it suits the next objectives of a brand’s founder(s), whether they want to exit the business completely, stay on and work as co-founders or collaborate with us to launch new products under the brand.
Based on these scenarios, we offer a combination of upfront payments, medium and long-term payouts and revenue share agreements as well as equity gains.
If you want to stay on and see your product ideas come to life, we can work together through our Creative Cofounders (TM) Program.
Furthermore, if you want to start a new business with our mentorship and support, you can benefit from our New (Ad)venture (TM) Program through which you can access our experts, our technology and our resources. An incubator meets tech hub meets global distributor type of environment. Pretty cool, right?