Business Overview

A well-known and very well established Chicagoland food gift distributor has laid a strong foundation for its new owners to continue to prosper.

The owners have designed a turnkey operation that includes manufacturing, distribution and attractive gift baskets for all to enjoy.

Key Investment Highlights:

* Company has delivered top line revenue and bottom line profitability since introducing its new expanding distribution model in 2019; 2021 projected revenues and seller’s discretionary earnings are expected to more than double that two years ago.
* Food gift items include baked goods and fruit; since introducing its fruit line two years ago that has now grown to over 50% of its revenue stream.
* Items can be purchased at any one of its 4 Chicagoland stores or same day local delivery to the front door.
* Seamless process in place with call center that integrates impeccable delivery service (15 drivers) to its 6 county delivery area.
* Flowers – both in store and delivery – to be added to its gift items in the very near future.
Business has been operating for nearly 5 decades. Second-generation owner that has changed the business model for continued growth over next ten years.
The gifting business model has been setup with call center or lead generation through multiple web sites. DTC distribution and back office fulfillment are key to this food processing model.
This business model has been established for a number of years. Adding new products will be key to growth down the distribution model. An easy, turnkey process moving forward.

Financial

  • Asking Price: $3,500,000
  • Cash Flow: $826,591
  • Gross Revenue: $3,786,830
  • EBITDA: N/A
  • FF&E: $81,111
  • Inventory: $16,700
  • Inventory Included: N/A
  • Established: 1983

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:68
  • Furniture, Fixtures and Equipment:N/A
Is Support & Training Included:

4 weeks

Purpose For Selling:

other interests

Additional Info

The company was founded in 1983, making the business 39 years old.
The deal doesn't include inventory valued at $16,700*, which ins't included in the asking price.

Why is the Current Owner Selling The Business?

There are all kinds of reasons people resolve to sell operating businesses. However, the genuine factor and the one they say to you might be 2 completely different things. For instance, they might state "I have way too many various responsibilities" or "I am retiring". For lots of sellers, these reasons stand. But, for some, these may simply be excuses to try to hide the reality of altering demographics, increased competition, recent decrease in revenues, or a variety of other reasons. This is why it is very crucial that you not depend entirely on a vendor's word, however rather, make use of the vendor's answer combined with your total due diligence. This will repaint a more realistic picture of the business's existing circumstance.

Existing Debts and Future Obligations

If the current business is in debt, which many companies are, then you will need to consider this when valuating/preparing your deal. Numerous companies take out loans in order to cover points such as supplies, payroll, accounts payable, so on and so forth. Bear in mind that sometimes this can imply that revenue margins are too tight. Lots of organisations fall under a revolving door of taking loans as a way to pay back other loans. Along with debts, there may also be future commitments to consider. There might be an outstanding lease on tools or the building where the business resides. The business may have existing agreements with suppliers that must be fulfilled or might result in fines if canceled early.

Understanding the Customer Base, Competition and Area Demographics

How do companies in the location bring in brand-new consumers? Many times, businesses have repeat consumers, which develop the core of their daily profits. Certain factors such as new competition sprouting up around the area, road building, as well as personnel turnover can affect repeat consumers and negatively influence future incomes. One vital point to take into consideration is the location of the business. Is it in a highly trafficked shopping center, or is it hidden from the main road? Certainly, the more people that see the business often, the greater the possibility to develop a returning consumer base. A final idea is the basic area demographics. Is the business placed in a densely populated city, or is it situated on the outskirts of town? How might the neighborhood average house earnings effect future revenue prospects?