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Middle Market Biohacker Nutritional Supplements Brand – 60% Repeat Order Rate – 60% Net Margins – 100% DTC eCommerce Sales – 1M Monthly Website Visitors

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Website Closers® presents a unique opportunity to acquire a Growth Oriented, Middle Market Nutritional Supplements Brand that has become one of the world’s leading suppliers of health products—well-known for their scientifically backed supplements that help reduce or even reverse the impacts of aging on humans.

Biohacking, also known as human enhancement, is the process health-conscious people use in making incremental changes to their bodies, diet, and lifestyle to improve their health and well-being. Biohacking ranges from efforts to improve brain function to faster weight loss.

Since the global pandemic, the emphasis on health, wellness, and a strong immune system has come into focus globally, and combined with breakthrough anti-aging science, has created a new super- category of supplementation that is already colossal with limitless growth potential.

The anti-aging market is expected to be worth $421 Billion by 2030 and is one of the fastest-growing verticals in the world. Its popularity is unsurprising, as supplements can now help tangibly reverse people’s biological age, and as the news spreads, so does the enthusiasm and sales volume. This brand entered the sector like a wrecking ball and is enjoying fruitful results beyond conceivable projections. It is at the forefront of a tremendously exciting future.

Revenue has grown steadily over the past 3 years, and despite this aggressive growth, the company has still maintained impressive 60% net margins, which is unheard of in the Supplements Industry as a whole. Much of this stems from the company’s Average Order Value of $520, which shows that consumers are willing to pay a premium for the opportunity to potentially extend length of their life. And this $520 is not a onetime expense – they also average a 60% Repeat Order Rate, which is an unprecedented level of Recurring Revenue for a Health Company.

Sales are 100% direct-to-consumer and made either as a one-time purchase or on a subscription model, with the latter patently triggering repeat customers and annual recurring revenue. The company averages around 1 Million visitors to the site every month.

6,800 subscription customers account for $5 million in annual recurring revenue, reducing customer acquisition costs, extending the average lifetime value of a customer, and further contributing toward the bottom line. The combination of lower churn, high margins and AOV make this a very special business that is a unicorn within its industry.

Products are selected based on a combination of scientific literature—typically translated into Layman’s terms by highly qualified medical and scientific professionals, independent advice from an advisory board, and feedback from creators and customers. As a result, demand for all SKUs is substantial, as sales metrics attest. The company takes a particular interest in the Science behind the ingredients they use in their products. They have developed an impressive array of research and made it available to the public so that users of their products can rest easy knowing that the products they are putting into their body actually make a difference.

The founder has cultivated excellent relationships with primary suppliers and copackers, who have proven trustworthy sources and fantastic partners. Many frogs were kissed before finding them, providing new ownership with yet another valuable asset.

Once manufactured, all products are tested at the source and again by US Labs. Only GMP facilities are utilized, ensuring optimal quality and consistency.

The trademarked brand sells under its private label with a few exceptions and offers some proprietary formulations, in addition to its pure, single ingredient supplements. They sell to a global audience, driven by the US market, which accounts for 70% of sales. These orders, of between 250 and 300 daily, are primarily dispatched from the company’s 4,000-square-foot warehouse and office space in the UK, and the balance are shipped from the company’s EU based 3PL.

A US manufacturer is already up and running and the business is currently testing a US based 3PL in the country, which at current volume, will save around $90,000 in monthly delivery costs to North America while lowering minimum orders and improving speed of delivery for US customers. Inventory for European distribution is sent to a 3PL from the same company in the Netherlands. However, management is looking to begin migrating UK manufacturing to Europe to reduce costs and refine logistics in a similar fashion.

Despite minimal marketing, the website attracts 1 million monthly visitors, with the majority of customers acquired organically through word-of-mouth referrals. Over the past few months, management has launched a paid advertising strategy that is yielding quick, positive results and a new ownership has infinite potential to pursue an aggressive digital marketing strategy and boost sales dramatically.

Existing efforts comprise three primary avenues:

  • Management has only recently scaled paid advertising, and the endeavor is showing promising results.
  • Affiliate-style influencer marketing has also been implemented on a small scale, with 5% commissions paid for sales. The team has recently systemized this program, which will likely pave the way for substantial growth in the future.
  • Finally, email marketing to a database of 75,000 subscribers has proven fruitful, with a 50% open rate and solid conversion rates. There is plenty of room to refine campaigns and achieve outstanding returns.

The typical customers are 45 or older, primarily from North America, and evenly split between genders. They are in the middle to upper-income brackets, given the average order value.

Sales remain strong throughout the year in this evergreen niche, with subscriptions contributing healthily through recurring orders and revenue.

Minimal working capital is required because orders are paid for at the time of sale, advertising spend is minimal, and the business has exceptional margins.

The owner enjoys an incredibly light workload of only two hours weekly, focusing primarily on more significant decisions such as strategy, partnerships, and supporting the CEO.

The existing team is motivated to remain with the business post-acquisition should a buyer wish. This proficient staff includes core members such as the CEO, Supply Chain Manager, Head of Enterprise, and Support Team Manager.

The owner is fully committed to ensuring a seamless transition and is available to stay on as an advisory board member to assist with continued growth and profitability.

This Health Brand is Represented by:

WebsiteClosers.com

Middle Market Business Brokers

WC 3194

Asking Price
$ 125,000,000
Cash Flow
$ 17,564,000
Gross Income
$ 29,211,402
Year Established
2020
Employees
10

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