Business Overview

Business Description:
A US BASED COMPANY THAT HAS CREATED A STRATEGIC ALLIANCE WITH GLOBALLY RECOGNIZED BRANDS AND SUPPLIERS WITHIN THE WORLD OF APPAREL, FOOTWEAR, HANDBAGS, FRAGRANCE, SPORTING GOODS AND HOME GOODS. 

Working as an extension to many brands, the company has developed a model where they handle all sales, distribution, packaging and day to day operations while creating a revenue stream of Gross Margin Dollars directly back to a to a brands P&L  The company has global reach with customers not only in the United States, but in Canada, Mexico, Japan, Korea, Taiwan, and Australia. 

The company maintains vendor numbers with Costco USA and Costco International, as well as, Walmart/Sam’s Club and a handful of big box retailers within the Pacific Rim.     
The company is also very active in the “grey” market/secondary market and works directly with both Costco and Sam’s Club’s Alternative Sourcing Channels to help supply brands they cannot source directly.  Twice a year the Company attends an invite-only meeting with Costco International where product is presented and booked on the spot.

Historical Summary:
The Company has been in business for over 16 years and has been profitable every year since the 1st year.  Having a proven niche and being a leader within the industry the business continues to be sort after by more and more companies.

Financial

  • Asking Price: $5,500,000
  • Cash Flow: $1,101,779
  • Gross Revenue: $8,119,651
  • EBITDA: N/A
  • FF&E: N/A
  • Inventory: $374,000
  • Inventory Included: N/A
  • Established: 2005

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
Is Support & Training Included:

Complete support & training will be provided.

Purpose For Selling:

Seller has other business interests.

Pros and Cons:

Very Limited

Opportunities and Growth:

Unlimited

Additional Info

The venture was established in 2005, making the business 17 years old.
The deal doesn't include inventory valued at $374,000*, which ins't included in the suggested price.

Why is the Current Owner Selling The Business?

There are all kinds of reasons people choose to sell operating businesses. Nevertheless, the real factor and the one they tell you might be 2 entirely different things. For instance, they may claim "I have too many various commitments" or "I am retiring". For many sellers, these factors are valid. But, for some, these may simply be reasons to try to conceal the reality of transforming demographics, increased competitors, current reduction in profits, or an array of other reasons. This is why it is very important that you not depend absolutely on a seller's word, yet instead, utilize the vendor's response combined with your general due diligence. This will paint a more reasonable image of the business's current situation.

Existing Debts and Future Obligations

If the current business is in debt, which lots of companies are, then you will certainly need to consider this when valuating/preparing your deal. Lots of businesses borrow money in order to cover points such as supplies, payroll, accounts payable, and so on. Bear in mind that occasionally this can imply that revenue margins are too tight. Many companies fall under a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may likewise be future obligations to take into consideration. There may be an outstanding lease on tools or the structure where the business resides. The business may have existing agreements with suppliers that have to be fulfilled or may result in penalties if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do operating businesses in the area draw in new consumers? Most times, businesses have repeat customers, which form the core of their daily profits. Specific variables such as brand-new competition sprouting up around the area, roadway building and construction, as well as personnel turn over can impact repeat customers and adversely impact future earnings. One crucial point to consider is the placement of the business. Is it in a highly trafficked shopping center, or is it hidden from the main road? Obviously, the more people that see the business regularly, the higher the opportunity to construct a returning customer base. A last thought is the basic location demographics. Is the business situated in a densely populated city, or is it located on the edge of town? Exactly how might the local mean house earnings impact future revenue prospects?