BUSINESS FOR SALE
CafeWorld is a fictional brand that represents an active, existing business for sale in Ontario. A fictional brand was created to protect customers and vendors during the sales process. The actual company will be revealed to potential buyers that express interest and ability to complete the acquisition with NDA.
Contact jayditrich@gmail.com
Overview
- Price: $660,000
- Trailing 12 months: $580,000 revenue with $220,000 gross profit
- Approximately $500/month in fixed overhead (servers+subscriptions)
- Average 47% Year-Over-Year Growth
- Consumer packaged goods and foods = “recession proof”
- Sales exclusively to Canadian market
- Average 1 hour/day of administrative work (phone+email)
- Pick/pack done by existing staff, making better use of current labour
- Diversified customer base
- 95% B2C
- Stream of new customers from automated Marketing programs
- 11,000+ customer database with 300+ new customers each month
- Existing demand for new product lines to current customer base
- Increase in shipping volumes through acquisition leads to decrease in shipping costs for existing business
- Increase in purchase volumes from suppliers through acquisition leads to increased purchase discount and makes it easier to hit minimums
WHO IS THIS FOR
This business is a perfect acquisition for foodservice importers/disitributors/retailers that carry similar product lines. There are no employees, leases or contracts to take over - this is as simple as showing your current employees how to pick and pack into boxes then sticking a system-generated shipping label on.
B2B companies: the huge number of customers and new customer acquisition program diversifies your customer base away from relying on few key large accounts and provides security against customer attrition. Reducing the impact of losing customers makes your company more valuable.
B2C companies: the increase in sales volumes via acquisition may be the "bump" required to renegotiate terms with importers/vendors, or even go direct to the manufacturer, substantially increasing margins.
Product Spoilage: For all CPG and food-industry companies, additional volumes means higher turnover and less product spoilage due to "bad dates", where writing off even 15% of inventory may mean a 100% loss in profits from the other 85% of inventory.
Master Distributors / Importers: Controlling the online search results and conversations for brands you carry provides additional value to the brands, and gives you the opportunity to support your key retailers with additional sales volumes. Alternatively, direct to consumer sales provides full retail markup on products sold, instead of marginal mark up to retailers.
While there won't be perfect overlap with which product lines are carried, this represents an opportunity to bring on new lines with existing sales volumes. For lines that are considered "competing" with your core brands, this is an opportunity to convert existing customers to the brands you specialize in.
Shipping Rates: Adding hundreds of shipments per month to your shipping volumes decreases shipping rates across all other shipments within your own business.
Decreased Competition: Purchasing CafeWorld is a rare opportunity to eliminate a competitor in the market, protecting future profit margins and decreasing competition. This reduced risk makes your company more valuable.
Synergies Summary
- Reduced product spoilage
- Decreased shipping rates
- Decreased competition
- Decreased impact of customer attrition
- Increased purchase discounts
- Increased efficiency of current labour
- Increased influence of brands
- Direct feedback from customers
E-Commerce Theory
E-commerce is simply a store optimized for online sales. The metrics that are important online and the factors that make a store successful often overlap with traditional brick-and-mortar businesses, but a number of factors make absolutely no sense in a traditional business, which is why many companies that invest huge sums of money building an online presence never get any traction.
Consultants are always an option, but without the background knowledge there's no way to know whether they're blowing smoke or can actually accomplish what they're promising. Anyone who gets paid whether you succeed or not doesn't have your interests aligned with theirs.
Buying a running e-commerce business with a proven system eliminates the thousands of hours of set up time and lets you hit the ground running. The enormous amount of real-world data generated each month lets you make smart business decisions about where to invest your money for best ROI.
Increasingly, small and mid-size business are turning to online searches to find vendors and has been a source of new commercial customers for CafeWorld. These are typically independently owned foodservice retailers looking for a specific product line in an are that is not well served by foodservice distributors, making them good long-term, low-maintenance customers. They will frequently ask for other product lines that they don't currently have a reliable supplier for.
Reason for Selling
Owner is interested in pursuing other interests.
May be open to partial sale to forward-looking company with strong digital team.
Questions?
I'd love to answer them and update this page as needed, send an inquiry at jayditrich@gmail.com
For specific questions about product line overlaps with your business, reach out to me and I'll generate a report detailing what percentage of sales directly overlap.