Business Overview

Successful Oakland, California Cannabis Delivery Service, located near the airport and convenient to all freeways. Seller has strong and growing revenues in a competitive market due to highly targeted marketing based on pricing and emphasis on customer service. A highly trained dispatch team operates with time and cost efficiency. Seller is open to a creditworthy Buyer note, but most of the purchase price must be in cash. NDA and POF required.

Financial

  • Asking Price: $1,599,000
  • Cash Flow: N/A
  • Gross Revenue: $1,600,000
  • EBITDA: N/A
  • FF&E: N/A
  • Inventory: $30,000
  • Inventory Included: N/A
  • Established: 2019

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:400
  • Lot Size:N/A
  • Total Number of Employees:12
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

Located in a gated and secure facility with 24/7 security. Parking lot on site.

Is Support & Training Included:

Owner available to train for transition. Can manage business on a longer term basis at market rates.

Purpose For Selling:

Focusing on Other Assets.

Pros and Cons:

Seller focuses on value based products and consistently markets to its customers through text campaigns offering attractive pricing. Strong vendor relationships help sustain Seller's product offerings. Seller invests heavily in training dispatchers and drivers, as part of its focus on service and operational efficiency. Seller benefits from recent reduction by city of Oakland in the gross receipts tax to 5% Medical, 6.5% Non-Medical for similar grossing cannabis businesses.

Opportunities and Growth:

Seller targets under served bay area localities in order to establish a market presence and customer loyalty. This strategy has driven Seller's growth and created anchors for further growth. This geographic reach would well compliment a buyer with other depots or retail locations.

Additional Info

The business was founded in 2019, making the business 3 years old.
The transaction shall not include inventory valued at $30,000*, which ins't included in the suggested price.

The company has 12 employees and is situated in a building with approx. square footage of 400 sq ft.
The property is leased by the company for $986 per Month

Why is the Current Owner Selling The Business?

There are all kinds of reasons individuals choose to sell operating businesses. Nevertheless, the real reason and the one they say to you might be 2 absolutely different things. For instance, they may claim "I have a lot of various responsibilities" or "I am retiring". For numerous sellers, these factors stand. But also, for some, these might just be justifications to attempt to conceal the reality of transforming demographics, increased competition, current decrease in revenues, or an array of other factors. This is why it is extremely important that you not depend totally on a seller's word, but rather, make use of the seller's solution in conjunction with your overall due diligence. This will repaint a more realistic image of the business's existing situation.

Existing Debts and Future Obligations

If the existing business is in debt, which lots of companies are, then you will certainly have reason to consider this when valuating/preparing your deal. Lots of companies take out loans with the purpose of covering points such as inventory, payroll, accounts payable, and so on. Remember that in some cases this can mean that earnings margins are too tight. Lots of organisations come under a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may also be future commitments to consider. There may be an outstanding lease on equipment or the structure where the business resides. The business may have existing agreements with suppliers that should be met or might result in fines if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do businesses in the location attract new consumers? Often times, operating businesses have repeat clients, which form the core of their day-to-day earnings. Certain aspects such as new competitors growing up around the area, road construction, as well as employee turn over can influence repeat consumers and negatively impact future profits. One essential thing to take into consideration is the area of the business. Is it in a highly trafficked shopping center, or is it hidden from the highway? Obviously, the more individuals that see the business regularly, the better the opportunity to develop a returning customer base. A last idea is the general area demographics. Is the business situated in a largely inhabited city, or is it located on the outskirts of town? Exactly how might the regional median family income effect future income prospects?