Remote DTC Apparel Brand Sold for $600K, Closed 2 Weeks Early
Rachel Horner
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2 min read
About the Business
Industry: E-commerce – Direct-to-Consumer Apparel
Location: Remote
Size: $500K–$750K in annual revenue, $200K–$250K in cash flow
Sale price: $600,000 plus inventory (asking price: $690,000)
Listing to signed LOI: 77 days
Signed LOI to close: 56 days
The Challenge: One Founder, Two Businesses
The owner had started a second apparel business and wanted to focus on it full time.
“I believe [the brand] has immense potential to grow exponentially with dedicated operation but right now I have feet in two worlds.”
77 Days to a Signed LOI: Finding the Right Buyer
What happened at every stage
Valuation: Baton listed the brand at $690K, about 3.3 times cash flow, with inventory sold separately on top.
Buyer Outreach: Baton matched the listing to 429 buyers at launch, and 36 buyers viewed it. A first-time buyer who is herself the brand's target customer requested an introduction.
Offer Selection and Negotiation Support: Her first LOI came in at $575K, and her SBA pre-approval left no room for more cash at close. The Baton advisor recommended adding the $25K to the seller note with a personal guarantee, and the buyer agreed to $600K.
Diligence and Closing Support: Baton settled working capital and financing questions before the LOI, then ran weekly 15-minute check-ins and mediated inventory pricing. The deal closed 56 days after the LOI, about two weeks ahead of its target date.
The Results
The buyer is a first-time owner who took over the brand after the sale. Through Baton's process, the business:
Sold for $600,000 plus inventory, 87% of its asking price
Was financed with an SBA 7(a) loan, buyer equity and a seller note
Closed about two weeks early, 56 days after the signed LOI
What's next for the owner?
The owner planned to focus on her wholesale apparel business after a 90-day transition.
Advice and Lessons for Future Sellers
One serious buyer can be enough. A well-prepared buyer and a clear process got the deal done.
Use the seller note to close a gap. Moving $25K into the note reached the seller's price without breaking the SBA math.
Settle the hard terms early. Agreeing on working capital and financing before the LOI made diligence faster.