Private Ecommerce Valuation and Modelling Help
Hey guys and gals,
We have a client that might want to make an offer to a public firm that owns an ecommerce subsidiary. I have to build the model for that subsidiary.
There is no public info on it specifically but it is rather large ecommerce firm and I don't have much experience with this. I have done some research and understand the main drivers (AOV, Conversion Rates, CLV, etc.) but am finding it hard to build accurate assumptions.
As I mentioned, the target company is technically not public itself and the only data we have is through press releases form 5 years ago.
How should I go about estimating the conversion rates by medium and site traffic and other things like that?
What I have:
Revenue in 2015 ~ $2 Billion
Average Order Value 2014 ~ $130
Acquisition price by previous buyer ~ $900m (over 10 years ago)
Literally nothing else.
Any help is much appreciated.
How should I go about estimating the conversion rates by medium and site traffic and other things like that?
You can't.
And the main metric is LTV:CAC.
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