WholesalePet.com — Acquisition by EMERGE Commerce
B2B e-commerce marketplace connecting independent pet retailers with pet-product brands and suppliers, acquired by EMERGE Commerce, illustrating how a differentiated asset-light marketplace with recurring B2B relationships and limited inventory exposure can command a multiple above typical e-commerce businesses.
Acquirer
EMERGE Commerce
Year
2021
Guaranteed Consideration
US$16m
Revenue
US$3.7m
Adjusted EBITDA
US$2.8m
EBITDA Multiple
5.7×
Industry
B2B SaaS Marketplace
Transaction
WholesalePet.com operates an asset-light marketplace connecting more than 8,000 independent retail locations with over 400 pet-product vendors. Retailers order through the platform, while vendors supply the products directly, allowing WholesalePet.com to operate without holding inventory. In the 12 months to September 2021, the business generated approximately US$40m in gross merchandise sales, US$3.7m in revenue and US$2.8m in adjusted EBITDA. EMERGE Commerce acquired the company for US$16m of guaranteed consideration, equivalent to approximately 5.7× adjusted EBITDA. A further performance-based earn-out of up to US$9m was available.
Why the Premium?
- Asset-light marketplace model with no inventory holding
- Recurring merchant base of more than 8,000 retail locations
- Long customer relationships and strong retention
- Strong profitability with minimal marketing requirements
- Differentiated B2B e-commerce positioning
SME Takeaway
WholesalePet.com's revenue fell within the SME Multiples $1–$50M benchmark. The transaction illustrates how a differentiated e-commerce marketplace with recurring B2B relationships, asset-light operations and limited inventory exposure can command a multiple above the typical 2.5×–5× e-commerce sector range. The 5.7× multiple is based on the US$16m guaranteed consideration and approximately US$2.8m of adjusted EBITDA; the additional performance-based earn-out of up to US$9m is excluded from this multiple.
Disclaimer: Case study figures are based on publicly available information and are provided for illustrative purposes only. Transaction values, EBITDA figures and implied multiples may reflect different reporting periods, definitions and deal structures, and some multiples are calculated from disclosed figures rather than reported by the parties. They are not formal valuations, investment advice or a substitute for independent professional advice.