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SBA Pre-Qualified eCommerce Brand in the Drainage Systems Vertical – 10% Down Payment for Qualified Buyers – Contracts with Home Depot & Lowes

Pending

Website Closers® presents an SBA Pre-Qualified eCommerce company that has enjoyed substantial growth by marketing drainage products and accessories to homeowners or for commercial use. We have put this business through our network of Lending Partners to position the business to already be pre-qualified for lending. Buyers need only put down 10-15% of the entire deal as a down payment with the balance amortized over an entire decade … all at historically low interest rates.

With proprietary products only manufactured for this business and no others, they have been riding the wave of new residential and commercial construction. The U.S. real estate market is on fire and expected to continue growing, giving them increasing sales and making this brand the premier supplier of a wide selection of trench drains. The field for different types of drainpipes – including plastic, concrete, steel, and others – is expanding rapidly today. The field has experienced significant development in recent years and is projected to grow solidly thanks to an increase in home and commercial construction projects as well as  the need to address aging pipes in older houses and office buildings. Plastic drainage pipes are progressively becoming the preferred option of drainage pipe material, giving this brand a considerable advantage moving forward.

Their products meet diverse needs. For the past five years, this brand has marketed plastic drainage products on their eCommerce website with a high AOV of $300. Their products, including pipe adapters and new stainless-steel grates, are only manufactured for them, giving this brand a highly specific solution for homeowners or commercial property managers experiencing drainage issues. This exclusivity grants them the necessary edge to pull the drainplug on others in the field, creating the moats necessary for a new owner to come in and focus on scale, rather than competition.

Their water drainage products offer solutions to a wide range of problems, including drainage issues in front and back yards, patios, driveways, sidewalks, and pools, with the bonus of buyer assistance for every step – from selection to installation. This expert mix of high-quality products and white-glove customer service has enabled sales to soar as the organization has grown to more than 50+ SKUs.

Products are sold in top home improvement stores. While the brand has sold its products directly to homeowners, they have a rapidly sales mix among major wholesale retailers who specialize in home improvement products. Right now, 60% of gross revenue is coming from Home Depot, with an additional 20% from Lowes. These two retailers have become contracting customers, meaning they are steady repeat customers, and the brand’s multiple products are sold in stores across the country operated by these two retailers. What a great opportunity for a buyer of this business to offer new products to these established, hard-to-get relationships. Considering the long life of these products—over ten years—having contracted wholesale partners is vital for generating healthy, continuous revenue.

In 2021, the brand expanded even further to sell its products on Amazon, which is now an additional 20% of sales. The company now makes a healthy 50 shipments per day in the spring, summer, and fall, and 20 shipments each day during the winter months.

Their brand recognition is strong. With an exclusive product sold on major home improvement sites as well as on Amazon, the company has built up strong brand recognition. Sales have been trending higher year over year, to the point where the company now stocks $600,000 worth of inventory at all times, with new orders placed on a monthly basis.

The brand has accomplished this without a traditional marketing plan, which offers a significant avenue for boosting sales moving forward. Today, the company has new products in the pipeline, ready to be launched, and has a sound, fully developed business model to handle all aspects of sales, managing orders, and fast and efficient shipping. In January 2022, the company will start using Fulfillment by Amazon for orders.

A shrewd buyer has an exceptional opportunity here to oversee an exclusive product available in two of the largest home improvement stores in the country, enjoying repeat orders and rising profits. Contact Website Closers today to discover more about this terrific opportunity.

This eCommerce Retailer is Represented by:

Website Closers

Tech, Internet & eCommerce Business Brokers

Listing ID: WC2530

Asking Price
$ 2,500,000
Cash Flow
$ 433,350
Gross Income
$ 1,495,591
Year Established
2016
Employees
1

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    or by phone: (800) 251-1559

    800-251-1559