Sector: E-Commerce (Consumer Goods – Home & Lifestyle)
Transaction Type: Acquisition for regional expansion by growth-stage D2C brand
Location: New South Wales

Client Profile

A fast-growing Australian direct-to-consumer (D2C) brand in the homewares and lifestyle segment, backed by venture capital and operating primarily online. The business was seeking to acquire a complementary e-commerce business to expand its product mix and customer base, while consolidating operational logistics.

Challenge

The client had never executed an acquisition and lacked in-house deal capability. Specific challenges included:

  • No defined target universe or clear acquisition criteria
  • Inability to assess e-commerce financials and inventory risk
  • Uncertainty around brand and customer base integration
  • Limited experience negotiating with founder-led businesses

Cavari’s Role

Cavari was engaged to run a complete buy-side program, including:

  • Target definition and AI-driven discovery
  • Commercial screening and brand analysis
  • Financial review including stock obsolescence, seasonality, and margin trends
  • Synergy planning and deal negotiation support

Strategic Approach

We began by defining acquisition criteria across vertical alignment, brand equity, fulfilment model, and community engagement. Our AI sourcing engine scanned Australian e-commerce operators using digital signals (traffic, ad spend, cart tools) and public records.

Cavari presented a shortlist of nine aligned targets, of which three proceeded to diligence. The selected target operated a profitable Shopify-based business with strong repeat purchase metrics and a complementary audience profile.

We led financial modelling and commercial due diligence, quantifying uplift potential from fulfilment integration and marketing cross-sell. A flexible deal structure was negotiated with an upfront payment and a 12-month performance-based earn-out.

Outcome

  • Acquisition completed at 1.6x trailing revenue
  • 42% post-acquisition uplift in blended AOV across brands
  • Marketing CAC reduced by 23% via shared campaign strategy
  • Integration executed in six weeks with no operational downtime

Strategic Insight

In e-commerce, acquisitions are brand and data plays not just asset purchases. Cavari’s structured buy-side framework helps founders scale intelligently by aligning cultural fit, operational logic, and customer value creation.