This long established ecommerce business is a B2B custom manufacturer of branded apparel, accessories, gifts and promotional products. Founded in 2012, this internet business has established a presence in this specific niche and continues to thrive with YoY sales and earnings growth of 8% and 22%, respectively. With revenue coming from B2B clients, the company has maintained average gross profit margins of nearly 55% over the past two years and net profit margins of 41% during the same time span as the products sold offer exceptional flexibility for overall price markup. However, even despite the success over six years operating the business, there are several immediate growth opportunities which the owners, who are looking to retire, have not taken advantage of.
Since the company’s inception, it has placed an overall focus on providing the highest quality products at the lowest possible prices, which has resulted in an extremely loyal and captive customer following, as is underscored by the company’s impressive 85% repeat business rate. With more than six years in business, they have developed a presence within this specific niche and have a proven track record of consistent cash flow to show for it. Additionally, the company’s attractive business model allows for a low working capital structure with minimal fixed overhead expenses as the owners do not maintain inventory and place all vendor orders only when their customers order the products. This “just-in-time” inventory model eliminates the working capital and inventory requirement, common to most ecommerce retailers, and instead increases the profitability and ROI of the business. Ultimately, this turnkey business can be relocated anywhere in the US and is a high-quality acquisition opportunity that offers plenty of potential growth and upside for overall return on investment.