Website Closers® presents a highly proprietary CPG Brand that is offered via eCommerce and Wholesale Sales Channels. The brand offers a large selection of probiotics, cosmeceuticals, and nutritional supplements to its growing audience. The brand is also very sticky with its customers and elicits significant product reviews that help the business continue to grow organically.
The business has gone through our lender network and is pre-qualified for SBA Financing. Qualified Buyers can purchase this business with a 10% down payment, amortizing the SBA Loan over 10 years at attractive interest rates.
With a main product line developed by an award-winning microbiologist, the company has successfully marketed these proprietary products to consumers that are excited to find a solution to their particular health needs. This has become a lucrative formula for the company, with consistent $1M+ sales, operating on both Amazon and its exact match domain website on the eCommerce side, and roughly 20% of the business going to wholesale accounts.
Probiotics have become an enormously lucrative product, with the global probiotics market now valued at $77.12 billion and projected to grow to $115 billion by 2029. Rising awareness of the health benefits of probiotics, particularly improved gut health and digestive function, has boosted the growth of the market across the globe. This brand has a 15-year track record appealing to customers interested in taking a proactive approach to their health, and many of those customers have become long-term buyers, giving this company an impressive 45% Repeat Customer Rate.
Being able to provide natural, non-pharmaceutical solutions has enabled this company to enjoy not just thriving DTC sales, but also a rising percentage of B2B sales to retailers that market probiotics and nutritional supplements. Those wholesale accounts are now 20% of the company’s gross profits, achieved even though the company has very minimal ad spend.
The company enjoys strong sales year-round on its Amazon platform with no seasonal impact, and has low working capital requirements, two other factors that should demonstrate to a buyer what a strong investment this acquisition will be. This business is also pre-qualified for SBA funding, with financing available with as little as 10% down for qualified buyers.
Business Broker Takeaway
Our analysis of this business revealed several key value propositions for a buyer looking for online companies bringing in a healthy profit, growing in a strong vertical, and with the ability to scale quickly. We anticipate buyers will recognize that value for 3 important reasons:
1. Proprietary SKUs. The company’s biggest seller has been its original probiotic, and they benefit from a preferential relationship with the exclusive distributor in the U.S., which also provides them with Preferential Pricing. Additional products are now bundled with their original and professional formula probiotic, developed by both their chief microbiologist and other supplement vendors. With the original formula probiotic having won numerous International Supplements Awards, their reputation is stronger and has become recognized within this booming field.
2. Unique Advantages. This company enjoys significant advantages that competitors can’t match. They maintain a branded website domain that is well-established and enjoys high search engine traffic. Their exclusive relationship with their supplier means they benefit from the marketing campaigns and promotions done by the manufacturer. Their licensing agreement also enables the company to purchase their products at a bulk price point below wholesale pricing.
3. Growth Opportunities. There are multiple ways to scale this operation quickly. The company could develop new relationships with wholesale customers while expanding its product line by introducing white-label supplements The company could expand its sales channels to include not just additional sales platforms (Walmart, Jet) but also social media sites such as Facebook and Instagram. Additional marketing tools – video marketing and influencer campaigns – would also be highly effective at driving sales to new heights.
The Company
This branded eCommerce company is 15 years old, with strong customer demographics today. Their products appeal to men (54% of buyers) and women who range in age from 18 to 54. Their supplier researches and develops products using only natural ingredients, which has made them popular with customers who want safe and effective supplements that don’t require a physician’s prescription. Better Nutrition Magazine has recognized their products as well, with their main Probiotic receiving the magazine’s Best Supplement Award for the past seven years in a row.
At an Average Order Value of $114, sales remain healthy throughout the year, peaking during the holiday shopping season.
The company has grown to 75 SKUs, including their bundles, which appeal to buyers because they are 100 vegetarian, dairy and gluten free, and devoid of added chemicals.
Operations
The current ownership works an average of 25 hours per week. Numerous tasks that the owner manages —including overseeing orders and shipments, managing inventory, and supervising marketing – could be handled by VAs or contractors.
The company maintains around $30,000 worth of inventory and usually reorders its main probiotic SKU twice a month to keep up with orders.
For a prospective buyer, it’s noteworthy that less than 2% of the company’s profits are invested in advertising, but the brand still has an active and successful marketing campaign. Those tools include PPC ad spends on Google and Bing, an email newsletter sent out to an email database with 11,000+ subscribers, and partnerships with prominent nutritionists and health professionals who promote their products on their videos.
Organic traffic generated from these promotions has been strong, with 8,000+ unique monthly visitors coming to their website every month.
The brand also benefits from the manufacturers’ existing customer list, customers they can market directly to.
Additional digital marketing tools are available to a buyer to scale this brand, including social media marketing, affiliate campaigns, and the launching of customer loyalty programs to boost sales.
With such a hefty customer base, the loyalty of so many of their buyers, and the ability to rapidly grow this automated business, the buyer has the luxury of knowing that the market for probiotics and nutritional supplements is only getting stronger, so this well-established brand is ideally positioned to ride that financial wave.
