Listing ID: 80744

Business Overview

Owner of a successful vapor distribution business is looking to sell 20% in the company for $400,000

This is an opportunity for a passive investor (or active if desired) to buy into a newer, fast growing company that already has great sales and systems in place. The company is based out of Seattle Washington and has had great results there but they are looking to expand into new markets. They are selling Equity to raise money in order to scale faster by purchasing more inventory, hiring more sales reps, and expanding to more cities.

The business was started in January 2021. Currently sales are growing by about 40 to 60% per month. This month the business will do over 100k in sales. The numbers shown above are a conservative projection for 2023. The owner is Looking to raise money at a 2 million Dollar valuation today to help him scale the company and expects that by the end of 2023 the investors share in the company will have increased in value by at least 500% on top of the cash flow they received from the business (over 30k/ month by the end of 2023 based on projections).

Seller is flexible on how the deal is structured and is willing to receive a portion of the money at closing and have the rest available as a line of credit he can draw against.

For more info on this opportunity call or text Mitchell @(360) 949-2161

Financial

  • Asking Price: $400,000
  • Cash Flow: $1,807,353
  • Gross Revenue: $14,975,149
  • EBITDA: $1,355,515
  • FF&E: N/A
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: 2021

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:4
  • Furniture, Fixtures and Equipment:N/A
Purpose For Selling:

Growth and expansion

Pros and Cons:

Expanding business in a recession proof industry

Additional Info

The venture was founded in 2021, making the business 1 years old.

The company has 4 employees and is located in a building with approx. square footage of N/A sq ft.
The property is leased by the company for $0.00

Why is the Current Owner Selling The Business?

There are all sorts of reasons individuals resolve to sell businesses. Nevertheless, the genuine factor and the one they say to you might be 2 completely different things. For instance, they might state "I have a lot of other commitments" or "I am retiring". For many sellers, these reasons stand. But, for some, these may simply be reasons to try to conceal the reality of altering demographics, increased competition, recent decrease in profits, or an array of various other factors. This is why it is extremely crucial that you not count completely on a vendor's word, however rather, use the seller's answer combined with your total due diligence. This will paint a much more reasonable picture of the business's existing scenario.

Existing Debts and Future Obligations

If the existing company is in debt, which numerous businesses are, then you will have reason to consider this when valuating/preparing your offer. Many operating businesses take out loans so as to cover things such as stock, payroll, accounts payable, etc. Bear in mind that sometimes this can imply that profit margins are too tight. Lots of companies come under a revolving door of taking loans as a way to pay back other loans. Along with debts, there may likewise be future obligations to think about. There may be an outstanding lease on equipment or the building where the business resides. The business might have existing contracts with suppliers that need to be met or may lead to charges if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Just how do companies in the area draw in brand-new clients? Often times, businesses have repeat customers, which create the core of their day-to-day earnings. Specific factors such as new competition growing up around the location, road construction, as well as employee turn over can influence repeat clients and adversely impact future earnings. One vital point to take into consideration is the placement of the business. Is it in an extremely trafficked shopping center, or is it concealed from the main road? Undoubtedly, the more individuals that see the business on a regular basis, the higher the chance to construct a returning customer base. A last idea is the general location demographics. Is the business situated in a densely inhabited city, or is it situated on the outside border of town? How might the regional median household earnings influence future earnings prospects?