Founded in 2016, the target is an established name brand in the Nutritional Supplements space in the European Market. The brand is a known leader on the Amazon platform in the EU and UK, providing consumers with high quality Vitamins and Supplements and other Health & Wellness Consumable products across a number of subcategories, including Vitamins, Probiotics, Collagen, Protein Powders, Omega Fish Oils and Superfoods, such as Manuka Honey and Matcha Tea. The Company has very favorable terms established with high quality suppliers and is in a ripe position to scale, both in the European marketplace, as well as in the United States. The company is not only growing year over year, but also continues to grow monthly, since inception.
An ideal buyer for this company is one that is currently selling on the Amazon.com market in the United States and is looking to expand into the European market. By acquiring this brand, a buyer can easily take their brand into the European market, and bring the target brand into the United States. A perfectly synergistic opportunity.
Scale opportunities are widely available, with the entire Amazon-US marketplace still waiting to be tapped. The seller just began expansion into Amazon US in May 2020 with the test launch of one SKU, with many more to follow. With very little maintenance or experience, this could be a real gem for someone looking to jump into one of e-commerce’s hottest verticals.
Work hours are light for this company. Current owners work just 10-15 hours per week under current operations. Daily tasks generally include overseeing 2 Virtual Assistants, limited customer service and basic analysis of financials. All inventory is stored at Fulfilled by Amazon (FBA) facilities so there are no warehousing needs or the normal operating expenses associated with running a warehouse (employees, rent, utilities, etc.).
Scaling opportunities here are immense – the most obvious being the untouched market of North America. The Company just launched in the US, after completing the groundwork to obtain US trademarks for the brand, as well as Amazon US brand registry, US FDA registration and a local US address. The Company has another launch in the US scheduled June 2020. A buyer will get products ready to ramp up and scale to realize the potential even in the US.
Founded in 2016, the company has grown to TTM Sales through April 2020 of over £1.36 million and earnings of £296,000, all net of VAT expenses of approximately £100,000. In May of 2019, the Company began an initiative to change the business model to increase margins. Through detailed analysis of ad campaigns, the Company was able to reduce ad spend from upwards of 20% of sales to a new run rate of just 6% of sales by September 2019, drastically increasing margins. At the same time, the refined ad focus has much more effectively driven sales growth. Q1 of 2020 alone posted a 60% Sales increase over Q1 of the prior year. Given this significant change in cost structure, the Company is being valued on a TTM with a partial forecast through August 2020.
