Ep 18 - Deal Decode : $2M Vape Shop in Toronto . Risk, Valuation & What to Ask the Broker
Description
In this episode , Eamonn Gamble and Robert Irwin analyze a $2 million vape shop for sale in Toronto—offering a step-by-step example of how to evaluate a small business acquisition using limited deal information.
Through a detailed SWOT analysis, they assess the vape industry’s growth potential, regulatory risks, competition, and the importance of location. Eamonn highlights opportunities in customer retention and recurring revenue, while Robert questions the valuation and stresses the need for reliable foot traffic data and three years of clean financials.
They walk through key steps for evaluating retail acquisitions, including:
Reviewing three years of financial data: revenue, EBITDA, and SDE
Assessing storefront location, foot traffic, and nearby competitors
Checking for regulatory compliance and risk of legal infractions
Judging the strength of the customer base and retention metrics
Validating whether a 4x SDE multiple is justified for a vape retail business
If you’re learning how to buy a small business, this episode offers practical insight into evaluating deal quality, asking the right broker questions, and avoiding overpaying in a regulated, competitive industry.
United States
