Business Overview

This expansive hemp operation gives you control, prestige and efficiency from soil to sales. Complete with patents and intellectual property, this fully vertically-integrated, industry-leading Company provides plant strains and certified processes that allow you to sell your own unique and high quality products, as well as white label and extract for other brands and clients worldwide. Company includes multiple ag operations, manufacturing facilities, design/formulation, bottling, warehouse and shipping capabilities. Consistently providing reliable and quality service to its clients has won this Company a wide and loyal client base. While 2020 was a difficult year, it allowed the company to grow its brand, processes, product line and territory. Professional management team, on-site engineers, scientists, carefully-trained employees, intellectual property, extensive catalogue of trade-marked products, real estate, facilities, cutting-edge equipment, and full-line inventory included. This Company will provide you a solid platform investment (or bolt-on to existing entity) in a fast growth industry as a top player.

Financial

  • Asking Price: N/A
  • Cash Flow: N/A
  • Gross Revenue: $15,400,000
  • EBITDA: $3,000,000
  • FF&E: $5,200,000
  • Inventory: $2,800,000
  • Inventory Included: Yes
  • Established: 2012

Detailed Information

  • Property Owned or Leased:Own
  • Property Included:Yes
  • Building Square Footage:N/A
  • Lot Size:N/A
  • Total Number of Employees:35
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

Several pieces of real estate. Efficient, highly functional, state-of-the art manufacturing plant, shipping, testing, quality control, etc.

Is Support & Training Included:

Owner will provide support to successfully transition the company for up to 3 months at no charge. Consulting agreement thereafter.

Purpose For Selling:

Retirement

Pros and Cons:

Company has certifications and a long list of intellectual property that sets it apart from competitors. Company is the market leader.

Opportunities and Growth:

Minor and synthetic cannabinoids, (i.e. Delta-8, Delta-9 and others) are, and will continue to be, very solid income generators as recreational markets (“essential businesses”) continue to grow. Nationwide FDA approval of CBD will create massive opportunities. Continue growing white-label clients, moving deeper into international markets.

Additional Info

The company was founded in 2012, making the business 10 years old.
The sale does include inventory valued at $2,800,000, which is included in the suggested price.

The business has 35 employees and resides in a building with estimated square footage of N/A sq ft.

Why is the Current Owner Selling The Business?

There are all types of reasons people resolve to sell businesses. Nevertheless, the real reason and the one they tell you may be 2 totally different things. For instance, they may say "I have a lot of other commitments" or "I am retiring". For lots of sellers, these factors stand. But also, for some, these may just be justifications to try to conceal the reality of changing demographics, increased competitors, recent decrease in profits, or a range of other reasons. This is why it is extremely vital that you not depend completely on a vendor's word, yet rather, utilize the vendor's solution together with your general due diligence. This will repaint an extra realistic image of the business's present circumstance.

Existing Debts and Future Obligations

If the existing entity is in debt, which many businesses are, then you will certainly need to consider this when valuating/preparing your offer. Numerous operating businesses take out loans in order to cover things like stock, payroll, accounts payable, etc. Remember that in some cases this can indicate that revenue margins are too small. Lots of businesses come under a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may also be future commitments to think about. There may be an outstanding lease on equipment or the building where the business resides. The business may have existing agreements with vendors that need to be satisfied or may lead to charges if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do businesses in the area draw in brand-new customers? Often times, businesses have repeat customers, which develop the core of their day-to-day earnings. Specific elements such as new competitors sprouting up around the location, roadway building, as well as personnel turn over can affect repeat clients and also adversely impact future profits. One essential point to consider is the location of the business. Is it in a highly trafficked shopping mall, or is it hidden from the main road? Undoubtedly, the more individuals that see the business regularly, the higher the opportunity to construct a returning client base. A final idea is the basic area demographics. Is the business situated in a densely populated city, or is it located on the outside border of town? How might the neighborhood typical household earnings impact future earnings prospects?