Listing ID: 66556
Business Overview
Valuation
This hotly sought-after acquisition is primed for greatness and won’t last long. With a truly unique product, large customer base, strong sales potential, high AOV, and unparalleled scaling opportunities, this reputable company could give any buyer an outstanding return on their investment. This business has the potential to be the next big jewelry brand and is on track to grow with the global market, making it a high-value target for any savvy business buyer.
Business Overview
This business is a direct-to-consumer (DTC) trademarked fashion/costume jewelry brand focused on ecommerce. Its products were created to revolutionize jewelry by updating the style of a popular specific type of jewelry and incorporating inspiration yet keeping meaning and personalization.
First to market with this unique jewelry concept/design and internally designed, this business has effectively created a defensive moat giving the company a competitive advantage in the jewelry industry. This trademarked brand jewelry is sold predominantly via its Shopify store and recently partnered with an experienced Amazon Company. Undoubtedly, Amazon will play a huge role in the brand’s growth. In the first few months, the business saw drastic week over week sales increases and plans to see continued significant growth.
Products are shipped from suppliers to a 3rd party fulfillment center. The company is operated by 2 owners working part-time managing the business. Additionally, there are 2 employees. It outsources all other functions of the business….manufacturing, 3PL, finance, digital marketing.
Costume Jewelry is in high demand and makes a great gift for just about any occasion. The vertical is a lucrative and evergreen sector, with sales projected to reach $480 billion by 2025. For these reasons, the chance to acquire an industry-leading company in the sector presents a unique and exciting opportunity to any potential buyer.
Key Benefits
• Trademarked brand
• First to market to revolutionize this unique jewelry
• High quality product with affordable mass market price point
• Unique niche product
• Huge opportunity for product expansion
• Huge brand community – 77K+ Instagram Followers, 18k+ Facebook Followers, 100k Email List and 35,000 SMS Text Subscribers
Financial
- Asking Price: $475,000
- Cash Flow: $60,524
- Gross Revenue: $1,609,873
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: 2018
Detailed Information
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:2
- Furniture, Fixtures and Equipment:N/A
Yes
Pursue Other Interests
There are numerous opportunities to scale this company a few of which include: • Continue growing the brand’s newly launched Amazon presence. • Invest in additional creatives for digital marketing ads • Launch Google Ads and other Social Media Advertising • Invest in influencer marketing to help promote the product on other channels
Additional Info
The business was started in 2018, making the business 4 years old.
Why is the Current Owner Selling The Business?
There are all kinds of reasons why people choose to sell operating businesses. However, the true factor vs the one they tell you may be 2 absolutely different things. As an example, they may say "I have too many other responsibilities" or "I am retiring". For numerous sellers, these reasons stand. But, for some, these might simply be reasons to attempt to conceal the reality of transforming demographics, increased competitors, recent reduction in earnings, or an array of other reasons. This is why it is very vital that you not depend completely on a vendor's word, but instead, make use of the vendor's answer together with your overall due diligence. This will repaint an extra sensible image of the business's present situation.
Existing Debts and Future Obligations
If the existing business is in debt, which many companies are, then you will certainly have reason to consider this when valuating/preparing your deal. Many operating businesses finance loans so as to cover points like stock, payroll, accounts payable, so on and so forth. Bear in mind that sometimes this can mean that revenue margins are too tight. Lots of companies fall under a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may additionally be future obligations to think about. There may be an outstanding lease on tools or the structure where the business resides. The business might have existing agreements with vendors that must be satisfied or may result in fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do businesses in the area draw in brand-new clients? Often times, companies have repeat clients, which form the core of their daily profits. Specific factors such as brand-new competitors sprouting up around the location, roadway construction, as well as employee turnover can affect repeat consumers as well as adversely impact future earnings. One important thing to take into consideration is the area of the business. Is it in an extremely trafficked shopping mall, or is it concealed from the highway? Clearly, the more individuals that see the business regularly, the better the chance to build a returning consumer base. A last idea is the basic area demographics. Is the business situated in a densely inhabited city, or is it located on the outside border of town? How might the regional mean family earnings effect future earnings potential?
