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Founded in 2015 to solve a simple but critical problem for people living with diabetes, this business has become a trusted provider of premium adhesive patches and accessories designed to improve the comfort, reliability, and longevity of continuous glucose monitoring (CGM) devices. The business operates on Amazon (over 95%) and via Shopify, offering a range of patches and accessories compatible with the leading CGM systems. What sets the business apart is its combination of product quality and use-case specialization. While many competitors offer generic adhesive solutions, the business has built a reputation for adhesive strength and reliability, with products designed to withstand exercise, swimming, and extended wear while minimizing skin irritation. As a result, the brand has established strong customer loyalty in a category that already benefits from highly recurring demand, creating natural repeat-purchase behavior (31% of revenue is repeat purchases) and high customer lifetime value. Looking forward, growth opportunities include expanding into adjacent diabetes accessory categories, launching products for upcoming to-be-released CGM devices, and international expansion. Additional upside exists in digging into more substantive lifecycle marketing and improving the subscription offerings, as well as exploring retail partnerships to broaden penetration into the rapidly growing diabetes and metabolic health markets. With evergreen and recurring customer demand, strong category tailwinds, and exposure to one of the fastest-growing segments in healthcare, the business represents a compelling opportunity to acquire a highly scalable brand serving an essential and expanding consumer need.
Why we like it
- Earnings quality is solid: $538,729 SDE on $1.72M revenue is a 31% margin, and the listing frames owner workload as low, which means the SDE is not disguised owner labor. At 3.16x and SBA pre-qualified, a buyer can finance most of the price and clear debt service comfortably from cash flow.
- Durability comes from the consumable nature of the product. CGM adhesives peel, sweat off, and get replaced on a recurring cycle, so 31% repeat-purchase revenue reflects real biological need rather than brand fashion. This is the rare Amazon brand where customers must come back.
- Market tailwinds are genuine and multi-year. CGM adoption is expanding well beyond Type 1 diabetes into Type 2 and general metabolic health, and every incremental sensor wearer is a new candidate for adhesive patches. The brand grows simply by riding device adoption it does not have to fund.
- The operator advantage is a low-complexity accessory sitting adjacent to a heavily regulated device category. You get the recurring demand of a medical consumable without the FDA burden, R&D cost, or capital intensity of making the sensor itself. That is an attractive spot on the value chain.
How to improve it
- Attack the subscription and lifecycle gap directly. With only 31% of revenue repeat despite an inherently recurring product, there is clear room to convert one-time buyers into Subscribe & Save and Shopify subscription cohorts. Even moving repeat revenue from 31% to 45% materially raises LTV and enterprise value.
- Launch patches for newly released CGM devices before competitors. Each new Dexcom, Abbott, or Medtronic sensor shape creates a fresh SKU opportunity, and being first to list the compatible patch captures the review flywheel early. Build a standing process to design and launch within weeks of each device release.
- Diversify off Amazon dependence. At 95%+ concentration on one channel, the business is one policy change or listing suspension away from a cash flow shock. Grow the Shopify DTC base, build an email and SMS file, and test retail placement in pharmacies to reduce single-platform risk.
- Expand into adjacent diabetes accessory categories. Insulin pump patches, sensor covers, skin prep wipes, and adhesive removers all target the same customer with the same buying behavior. Cross-sell to the existing base to lift average order value with minimal new customer acquisition cost.
- Pursue international expansion where CGM adoption is accelerating. Amazon marketplaces in the UK, EU, Canada, and Australia serve growing diabetic populations, and the product needs no reformulation. Replicating winning listings abroad is a low-cost lever on a proven catalog.
- Tighten pricing and bundle strategy. Multi-pack and bundle SKUs raise units per order and improve margin against Amazon fees. Test premium bundles for active users (swimmers, athletes) who value the brand's adhesion strength most and are least price-sensitive.
Diligence notes
- Verify the 31% repeat-purchase figure and the source of that data. Confirm whether it is measured from Amazon Subscribe & Save, matched email addresses, or Shopify accounts, and pull the actual cohort retention curves. The repeat rate is central to the valuation thesis, so it must be documented, not asserted.
- Scrutinize Amazon account health and concentration risk. Review the full history of listing suspensions, IP or safety complaints, account warnings, and reviews velocity. A single account tied to 95%+ of revenue is the primary point of failure in this deal.
- Examine supplier and manufacturing dependence. Identify whether the adhesive patches come from one factory, what the terms and lead times are, and whether any IP, tooling, or exclusive formulation protects against a supplier going direct or a competitor copying the product.
- Assess regulatory and product-liability exposure. Adhesive patches worn on skin near a medical device can trigger FDA classification questions, labeling claims scrutiny, and skin-irritation liability. Confirm current classification, insurance coverage, and any past complaints or adverse events.
- Test durability against CGM device changes. Because SKUs are tied to specific sensor shapes, confirm what share of revenue depends on legacy devices being phased out versus current-generation sensors. A device redesign could obsolete top SKUs, so understand the SKU-level revenue and roadmap risk.
Source
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