The target is every Internet Entrepreneur’s dream – a highly profitable, fully branded and trademarked eCommerce Business with sales channel diversity and plenty of runway ahead. This consumer products retailer sells a broad line of water and air filtration products under multiple brand names. All products are branded and some are proprietary to the company. The filtration products range from well water filtration bundles to single counter top filters and everything in between. Products meet NSF/ANSI 58 standards.
This company’s books & records are clean, making it a prime target for an SBA-backed 7(a) loan to assist with the acquisition where a qualified buyer would only need to put 10-15% Down to acquire this business – an opportunity to achieve an ROI very quickly.
Amazon represents roughly 60% of sales mix, with eBay accounting for the bulk of the balance. The company also has sales through Walmart as well as its own website, but these sales are minimal at this time and represent low-hanging fruit opportunities for additional growth. Sales have grown from $1.31 million in 2017 to $1.55 million in 2018, with TTM earnings of $550,000 through December 2018.
Currently, the company has approximately 300 listings on Amazon and eBay, shipping most of the product from its own warehouse in just a few hours per day with an average order size of $127. Most, if not all, of this process could be outsourced to Amazon FBA and a 3PL if desired. The company has just touched the surface of where its potential, and using the power of Amazon and SEO, can be scaled in a number of different directions almost immediately following acquisition.
The value propositions for this company are clear:
– Profit Margins are far higher when selling your own, branded product line
– Multiple Brands to help with quicker scale
– Highly desirable, lower competition product lines
– Consumer filter products tend to have high repeat customers
– Over $500,000 in earnings
– The company continues to grow on Amazon and has the ability to quickly scale on Wal- Mart and other channels.
– A network of Affiliates could be added to sell the products via the Website.
– The products could also be sold to distributors and other retailers at wholesale.
This company has everything smart entrepreneurs, investors and lenders are looking for in an M&A opportunity: High Growth, Proprietary Product Lines, Great Ratings & Reviews, Highly Scalable and Clean Numbers.
