Business Overview

This is a business built in a niche. They purchase used smart phones in bulk and do basic repairs and sell them in bulk to resellers world wide. This is high demand and low availability. They are turning their inventory within 21 days. They have relationships with big suppliers to purchase the phones in bulk and then they have avenues to resell the phones worldwide. They have a office warehouse in Dallas where a handful of technicians grade and repair phones. This company is limited by working capital. While they only have used 300k in working capital they would have grown more if they used more working capital. This working capital is used to purchase the phones in bulk then you have 21 days before you get your money plus profit back. Under certain circumstances they could extend credit to credit worthy buyers and make more money. This business is rare way to take money and make money fast. While margins are low… It is “sure” money since the demand outweighs the supply. The only difference between EBITDA and Cashflow is the owners W2 salary and related taxes. This business has a saver Return on money than 99% of the typical businesses Sigma list for sale.

To get MORE INFORMATION – Please complete the NDA online at sigmamergers.com/nda and select “Smart Phone Distribution” in the dropdown. We have a CIM/Profile and video interview with the owner. DON’T complete the form here on this page go to Sigmamergers.com/nda and complete the form so you can get information within minutes. Once you see the “thank you” page…. Your email will ding with more information. Don’t wait days/weeks to get more info. Go to sigmamergers.com/nda and complete the form. No one will call you. We just send you a link to get more information 24/7/365.

Financial

  • Asking Price: $2,500,000
  • Cash Flow: $634,851
  • Gross Revenue: $12,003,070
  • EBITDA: $505,851
  • FF&E: $5,000
  • Inventory: $100,000
  • Inventory Included: Yes
  • 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:6
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

The business has it's own office/warehouse but the entrance goes thru the other business that the owners own. The business can be easily moved since there are NO walk in customers. It can be located anywhere.

Is Support & Training Included:

YES, AS needed. This is based on the buyer and their prior knowledge of the industry.

Purpose For Selling:

Serial entrepreneurs. They own several businesses and this one is growing fast!

Pros and Cons:

They say there is none Since the demand is so high for the product. We cover this more in the CIM/Profile

Opportunities and Growth:

The sky is the limit. We have a link to an article in the CIM from industry research that believes this industry is going to grow dramatically over the next 10 years. GET IN NOW!

Additional Info

The company was established in 2018, making the business 4 years old.
The transaction shall include inventory valued at $100,000, which is included in the listing price.

Why is the Current Owner Selling The Business?

There are all kinds of reasons people decide to sell operating businesses. Nonetheless, the true reason vs the one they say to you may be 2 totally different things. As an example, they may claim "I have way too many various obligations" or "I am retiring". For numerous sellers, these factors are valid. However, for some, these might just be excuses to try to conceal the reality of transforming demographics, increased competition, current reduction in revenues, or a range of various other factors. This is why it is really essential that you not rely totally on a vendor's word, however instead, make use of the seller's response along with your overall due diligence. This will repaint an extra reasonable picture 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 need to consider this when valuating/preparing your offer. Numerous companies finance loans in order to cover items like inventory, payroll, accounts payable, etc. Keep in mind that occasionally this can suggest that revenue margins are too small. Lots of companies fall under a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may likewise be future obligations to consider. There might be an outstanding lease on equipment or the building where the business resides. The business may have existing agreements with vendors that need to be fulfilled or might lead to penalties if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do operating businesses in the location bring in brand-new consumers? Often times, businesses have repeat clients, which create the core of their everyday profits. Certain factors such as new competition sprouting up around the area, roadway building, and staff turnover can affect repeat consumers and also negatively impact future profits. One vital point to consider is the placement of the business. Is it in a very trafficked shopping mall, or is it concealed from the main road? Certainly, the more individuals that see the business regularly, the better the possibility to develop a returning client base. A last thought is the general area demographics. Is the business situated in a largely populated city, or is it located on the outside border of town? Just how might the neighborhood typical household income impact future income potential?