Listing ID: 77325
Business Overview
This is a commercial online property with rapidly growing sales as well as growing net income in the area of online sales of parts to RV owners. Our Client operates in a rapidly expanding market, with a solid retail hold on selling products from one of the biggest manufacturers in the industry.
This online business is very lucrative. Our Client is an online drop shipper for a major manufacturer’s RV appliances and associated parts. The website sells water heaters, furnaces, ranges and all parts associated. According to the Seller “The day consists of placing orders through my distributor and answering customer service questions via email. I have all of the manuals and parts diagrams needed to answer customer service questions and lead customers to finding the correct part.”
Assisting customers is all done through email and a live chat window. If the owner does not have the answer for a customer they are directed to the manufacturers contact page for further assistance. When a customer needs to return an item, the necessary information is sent to the distributor and they handle the return once they have received the item.
?
Our Client’s operation has arrived where it is by making the platform easy to navigate while providing exceptional customer service. The RV industry lacks in customer service so simply helping customers find what they need has been a driving force. The strategy has been very successful. Word of mouth on the excellent customer service has helped spread a sterling reputation and rapidly increase sales and revenue.
The online property has developed many strengths and advantages. These include:
Knowledge of the products and understanding of customer needs, customer service, proven track record, ease of operations, extremely low overhead costs, no inventory to manage, minimal employees required, specific to one of the largest manufacturers in the industry, strong foothold in the online retail sector, large growth opportunity
Our client owns all processes, and websites which they will transfer in full to a buyer.
Our client’s “ready to go,” profitable web site, tech, and relationships will enable a buyer to be up and running immediately.
NDA is required to secure comprehensive Confidential Information Memorandum (CIM) crafted by ProNova Partners.
Financial
- Asking Price: $1,000,000
- Cash Flow: $110,000
- Gross Revenue: $340,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- 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:2
- Furniture, Fixtures and Equipment:N/A
As needed – specific terms for transition support can be negotiated. The Seller wishes to facilitate a successful and smooth transfer of the Business.
Other business interests
The RV market has exploded with soaring sales being driven by Covid, among other things. Our Client’s Web site and structure will allow the buyer to tap into this market via the Web immediately.
Additional Info
The venture was established in 2018, making the business 4 years old.
Why is the Current Owner Selling The Business?
There are all types of reasons why people choose to sell companies. Nevertheless, the real reason and the one they tell you might be 2 completely different things. For instance, they may claim "I have a lot of various responsibilities" or "I am retiring". For numerous sellers, these factors stand. However, for some, these may just be justifications to attempt to conceal the reality of transforming demographics, increased competitors, current reduction in profits, or a variety of other factors. This is why it is really crucial that you not depend completely on a vendor's word, but instead, utilize the vendor's response together with your overall due diligence. This will paint a more sensible picture of the business's current situation.
Existing Debts and Future Obligations
If the existing entity is in debt, which lots of companies are, then you will certainly have reason to consider this when valuating/preparing your deal. Numerous operating businesses borrow money with the purpose of covering items such as supplies, payroll, accounts payable, so on and so forth. Keep in mind that in some cases this can suggest that profit margins are too small. Lots of businesses fall under a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may likewise be future commitments to take into consideration. There might be an outstanding lease on tools or the structure where the business resides. The business might have existing contracts with suppliers that must be fulfilled or may cause penalties if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do companies in the area bring in brand-new clients? Many times, companies have repeat consumers, which develop the core of their everyday earnings. Particular factors such as new competition sprouting up around the area, roadway building, and also staff turnover can influence repeat customers and also negatively influence future earnings. One essential point to think about is the placement of the business. Is it in a very trafficked shopping center, or is it hidden from the highway? Clearly, the more individuals that see the business on a regular basis, the greater the chance to develop a returning consumer base. A last thought is the general area demographics. Is the business located in a largely inhabited city, or is it situated on the outside border of town? Exactly how might the local average family income effect future income prospects?
