Online Reseller For Sale with $2.7 Million in Sales

1743

Amazon and eBay reseller with a 56% profit increase over the last year. This business earned its owners profit of over $151,000 in its 2nd full year of operation with a recognized search name on Amazon for specialty toys and games.
Easily operated from anywhere, the inventory is sourced by the current business owner and held at the fulfillment warehouse offsite. The total cost of company-owned inventory housed elsewhere is $207,489 before markup. Inventory turns more than 13x each year.
To ensure a smooth transition for an incoming owner, the current Seller will provide 90 days of training and support to the incoming buyer. The Seller has started a new project that is requiring additional capital, hence the reason for the sale.
Profiting more than $151,000 in 2015, a new owner could operate this business absentee with one employee, pay all debts and still profit $77,696 in the first year.

Financial Overview
List Price: $465,000
Gross Sales
2015: $2,714,989
2014: $1,667,515
2013: $533,035
Owner Profit/Cash Flow
2015: $151,568
2014: $66,032
2013: $34,710
YOY Growth: 56% sales growth from 2014 to 2015
Profit Margin: 5.58%
Multiple: 3.1 *Multiples range from 1-5, with the average being 3
Valuation: 2015 Cash Flow x Multiple = Price
$151,568 x 3.1 = $469,860

Assets Included in Purchase: $207,489
Intangible Assets: two established domain names, 5 star Amazon Seller Account with 7,541 customers, top rated eBay Seller Account with 1,196 reviews
Inventory: $207,489 (at cost, not resale value) – inventory turns over 13 times each year; this inventory is unaged and all sellable
*amounts may vary
Business Information
Years in Business: 2
Location and Service Area: Online Retailer
Number of Clients: More than 7,500
Reason for Selling: Started a business in 2015 that is requiring major capital
Seller Training Period: Up to 90 days
Growth Opportunities: Add other retailers
Current Owner’s Responsibilities: Owner-Operator; financials provided have accounted for a non-owner employee to be paid $45,000 annually to perform shipping and reporting functions

Funding Example
Purchase Price: $465,000
12.5% Buyer Down Payment: $58,125
17.5% Seller Financing: $81,375
70% Bank Loan: $325,500
Net operating income in year 1 after debt service equals $77,696 when applying the above funding scenario.

Facilities:

Online Retailer

Growth Potential:

Add other retailers

Training/Support:

Up to 90 days

Seller Financing:

17.5% Seller Financing: $81,375

Sale Reason:

Started a business in 2015 that is requiring major capital