Listing ID: 1228
Canada - Relocatable
A very well established on-line health supplements business with strong repeat and referral business that is capable of being operated anywhere phone lines and internet exists. Currently operated from a home office, this business has been an exceptional money maker for the owner and there is potential to add an additional $60k - $100k to the bottom line with a proper transition plan. Contact us to learn more about this already mapped out plan. It is time for the owner to move on to other life ventures, however, strong support will be provided to ensure the success of the operations remain.
Some quick facts about this business:
- Almost entirely B2C
- No drop shipping and no 3rd party platforms for sales (No Amazon). 100% through existing web-site.
- 95% of sales are in USD
- 80%+ of sales are from within North America
- Approximately 50% repeat purchases.
- Less than 15 SKUs.
- Limited inventory Requirements (size wise) - approximately $150k in value required (5.5 turns per years).
- Operates from home office < 350 sft
- Committed staff (1 FT and 1 PT + FT Owner)
For someone who does not have time flexibility in their life to manage the needs of customers from outside America who are on a different timezone (approximately 20% of the business), or someone who does not have an interest in providing quality service (phone support), they will need to be thinking about outsourcing or hiring to assist with these important components of the business. Although staff of the company help manage all aspects, there are certainly times when the owner, today, is flexible with his schedule.
The sale is structured as a sale of 100% of the authorized and issued share capital of the company. Working Capital shall be adjusted at $0. By completing the NDA and becoming a qualified buyer, we'll be happy to send you a full Offering Memorandum that will answer most all of your questions.
Revenues have been growing at approximately 2.5% per year over the past 5 years:
2020 - 1,767,920
2021 YTD (as of June 30) =
Gross Profit = 43% average over past 5 years.
Maintainable Seller's Discretionary Earnings of $505K (does not consider uptick from proper transition plan)
Our expectations would be that an average deal would have approximately 60% financing, over 5 years, with annual payments of approximately $65,000.
* SDE - Seller's Discretionary Earnings are the pretax and pre-interest profits before non-cash expenses, owner's benefits, one time investments, and any non-related income or expenses. In addition, SDE may require that expenses be adjusted if a new owner will necessarily need to take on a new expense.
** Our expectations are for a minimum 35% down payment on the final negotiated purchase price, with the balance being financed over 6 - 7 years. For sake of example, we expect monthly payments of P&I to be approximately $11k per month, or $132k per year.
Home office: approximately 350 sft.
Financials have been normalized to consider a leased office environment of approximately approximately 500 sft.
Helping our clients achieve the greatest success possible requires completing a transaction beneficial to both buyer and seller. To achieve that success, we work exclusively with well-qualified individuals, delve into the unique needs of both parties and develop a strategic plan that will help generate excellent results.
Gateway Business Brokers places a priority on open, frequent and comprehensive communication with our clients. We promise to communicate and confirm expectations in a timely and courteous manner each and every time.
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