Business Overview

Seller manufactures and distributes CBD rich tinctures, salves, balms, lotions, sprays, capsules, vapes, gummies, bath bombs, bath salts and face serum & creams online and through retail outlets. Seller also manufactures and distributes THC rich tinctures, salves, balms, lotions, sprays, tinctures, capsules, vapes, bath bombs and salts through AZ licensed dispensaries. Seller was founded as a hemp based company in order to fulfill the need for effective, legal CBD-rich products. It later partnered with a large AZ Dispensary in order to bring effective THC rich wellness products to the market. Seller has consistently grown its net revenues with minimal marketing, through word of mouth and kept costs low with efficient operations. 50% of purchase price up front and Seller will carry the remainder for 2 years at 7% interest. NDA and POF Required. Arizona Broker is Karen Marie Muller AZ #BR687753000

Financial

  • Asking Price: $4,999,000
  • Cash Flow: N/A
  • Gross Revenue: N/A
  • EBITDA: $800,000
  • FF&E: $100,000
  • Inventory: $280,000
  • Inventory Included: N/A
  • Established: 2010

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:2,000
  • Lot Size:N/A
  • Total Number of Employees:3
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

Seller rents 2,000 square feet of manufacturing and distribution space for $2,500 per month including utilities. In addition, Seller leases space at a large Arizona dispensary in order to manufacture THC wellness products under the dispensary license and then distribute them at the dispensary and to other dispensaries. All arrangements are month to month.

Is Support & Training Included:

Current key team of employees can stay and/or assist on a transition. Minimal to no owner oversight needed for day-to-day operations if current employees are retained.

Purpose For Selling:

Retirement

Pros and Cons:

Since its founding, Seller's brands have received multiple awards and recognition for their uniquely formulated health and wellness products. Years of research went into developing proprietary formulations, whereas many CBD companies simply use white labeled products. Brand names used are federal and local trademark protected.

Opportunities and Growth:

Growth in sales has been organic through word of mouth. There has been no sales and marketing budget and no SEO purchased for CBD website sales. Implementing a sales and marketing budget/team would be the next logical step to achieve higher sales. Expanding to other states, distribution deals or franchises are all possibilities that should be considered by a buyer. Seller recently recently expanded into 5 dispensaries in Missouri and is working to establish a marijuana kitchen in order to also offer edibles in Arizona.

Additional Info

The business was founded in 2010, making the business 12 years old.
The transaction doesn't include inventory valued at $280,000*, which ins't included in the suggested price.

The business has 3 employees and is located in a building with estimated square footage of 2,000 sq ft.
The property is leased by the company for $2,500 per Month

Why is the Current Owner Selling The Business?

There are all types of reasons individuals choose to sell companies. Nevertheless, the genuine reason vs the one they say to you might be 2 completely different things. For instance, they might claim "I have way too many other responsibilities" or "I am retiring". For many sellers, these factors are valid. But also, for some, these might just be excuses to attempt to conceal the reality of altering demographics, increased competitors, recent reduction in profits, or a variety of various other reasons. This is why it is very essential that you not rely totally on a seller's word, yet instead, use the vendor's solution combined with your overall due diligence. This will paint a more realistic image of the business's current circumstance.

Existing Debts and Future Obligations

If the current company is in debt, which numerous businesses are, then you will have reason to consider this when valuating/preparing your offer. Lots of businesses take out loans with the purpose of covering items like supplies, payroll, accounts payable, so on and so forth. Remember that sometimes this can imply that revenue margins are too thin. Many businesses come 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 think about. There might be an outstanding lease on equipment or the building where the business resides. The business may have existing contracts with vendors that must be satisfied or might cause fines if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do companies in the area attract brand-new customers? Many times, businesses have repeat customers, which develop the core of their daily revenues. Specific factors such as new competition growing up around the location, roadway construction, as well as employee turnover can influence repeat customers as well as adversely influence future earnings. One essential thing to think about is the placement of the business. Is it in a highly trafficked shopping center, or is it concealed from the main road? Undoubtedly, the more individuals that see the business often, the higher the chance to construct a returning client base. A final idea is the general area demographics. Is the business located in a largely inhabited city, or is it located on the outside border of town? Exactly how might the neighborhood median home income effect future earnings potential?