Business Overview

This operating Cannabis facility is licensed for infusion and distribution and has an extremely valuable pending Costa Mesa non-store front delivery permit. The delivery permit is expected to be issued in April 2022. Seller white labels vapes, pre-rolls and cold press concentrates. Buyer can easily expand the product line and distribution business in the current facilities. Major equipment included in the purchase are an Ice-wash, two Freezers, a Press, an Oven, a Van and a SUV. NDA and POF Required.



  • Asking Price: $2,499,000
  • Cash Flow: N/A
  • Gross Revenue: N/A
  • FF&E: N/A
  • Inventory: $165,000
  • Inventory Included: N/A
  • Established: 2020

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:5,283
  • Lot Size:N/A
  • Total Number of Employees:7
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

5283 sq. ft building with 15 parking spots and one roll up door. Lease at $17,593 NNN with escalations expires July 14, 2023; has two five year options to renew at market. Power is 1000 Amps and Water and Sewer from City of Costa Mesa. 15 parking spots. Gated with security fence around the perimeter.

Is Support & Training Included:

Owner will stay on to transition the operations to buyer.

Purpose For Selling:

Owners focusing on other businesses.

Pros and Cons:

Seller's Cannabis pending cannabis delivery permit will be among the first group issued by the city of Costa Mesa, allowing for early market entry. As other Orange County cities allow cannabis businesses, Seller's distribution business could be expanded to take advantage of this growth.

Opportunities and Growth:

Located close to major freeways in Orange County allowing for quick and efficient delivery and distribution to heavily populated coastal areas.

Additional Info

The company was founded in 2020, making the business 2 years old.
The deal won't include inventory valued at $165,000*, which ins't included in the suggested price.

The company has 7 employees and resides in a building with estimated square footage of 5,283 sq ft.
The building is leased by the business for $17,593 per Month

Why is the Current Owner Selling The Business?

There are all types of reasons individuals choose to sell businesses. Nonetheless, the genuine factor vs the one they tell you may be 2 absolutely different things. As an example, they may claim "I have too many various commitments" or "I am retiring". For lots of sellers, these factors are valid. But also, for some, these may just be reasons to try to hide the reality of transforming demographics, increased competitors, recent decrease in revenues, or an array of other reasons. This is why it is really vital that you not count totally on a seller's word, but rather, make use of the vendor's response combined with your general due diligence. This will repaint a more reasonable image of the business's existing situation.

Existing Debts and Future Obligations

If the current company is in debt, which lots of businesses are, then you will certainly need to consider this when valuating/preparing your deal. Numerous businesses finance loans with the purpose of covering points like supplies, payroll, accounts payable, so on and so forth. Bear in mind that sometimes this can imply that profit margins are too thin. Lots of companies come under a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may additionally be future obligations to take into consideration. There might be an outstanding lease on equipment or the building where the business resides. The business might have existing contracts with suppliers that have to be fulfilled or might cause penalties if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Just how do operating businesses in the area bring in brand-new consumers? Most times, businesses have repeat customers, which form the core of their everyday earnings. Particular variables such as brand-new competition growing up around the area, roadway building, as well as employee turnover can influence repeat customers and also adversely influence future incomes. One vital point to think about is the location of the business. Is it in a very trafficked shopping center, or is it concealed from the highway? Obviously, the more people that see the business regularly, the greater the opportunity to build a returning consumer base. A last idea is the basic location demographics. Is the business situated in a largely populated city, or is it located on the outside border of town? Exactly how might the local average house earnings impact future earnings potential?