Online Distributor of Industrial Supplies

United States

Asking Price: On Request
Business For Sale Details
Listed on Apr 23, 2024

Description:
The Company is a worldwide ecommerce provider of new, refurbished, and pre-owned industrial supplies and equipment. Through various developed channels and industry brokers frequently used in acquiring its inventory, the Company has become a leader in providing an alternative, lower cost sourcing option for the global manufacturing base and resellers.

Key Aspects:
• Consistent Growth: Revenue and adjusted EBITDA grew at compound annual growth rates (CAGRs) of 19.2% and 30.8% respectively, from 2020 through 2023
• Strong Margins: Adjusted EBITDA margins averaged approximately 52% over the last four years
• Low Return Rates: The Company maintains a low product return rate, with a rate of 4.2% or less, which is notably lower than the 10- 20% industry average according to the owner
• Reputable Brand: Established brand presence with customer base and is a Top-Rated seller on third-party ecommerce platforms

Opportunities:
• Expand Services Offered: A maintenance repair overhaul (MRO) facility, could increase revenue by $500,000 or more per year, according to the owner
• Increase Marketing Spend: Search engine optimization (SEO) in the Company’s websites and develop a mobile-friendly online presence to attract more customers to the Company's website
• Expand Ecommerce Analyst Team: Hiring more ecommerce analysts for faster product processing
• Diversify Product Range: Acquiring lower-margin products and adding additional high margin inventory to diversify product options and increase revenue
• Broaden Sales Channels: Expand to sell on Walmart, Target, and other third-party marketplaces

Headquartered:
• West Coast, U.S.

Current Markets:
• The Company serves the industrial, automotive, and automation industries in the U.S., U.K., Middle East, and Asia. U.S. sales make up approximately 85% of the Company’s revenue.

Real Estate:
• The owner manages the Company remotely from a headquarters location in the Southwest U.S.
• The Company operates day-to-day from several adjacent facilities totaling 26,000 sq. ft. located in the Midwest, U.S. The facilities are owned by an affiliated entity and management would be willing to negotiate a long-term lease post-sale.

Shareholder Ownership:
• The owner is seeking a full exit to explore other ventures and spend more time with family.
• The owner is willing to remain with the Company for a predetermined period of time to help facilitate a smooth transition of ownership.

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Financials (USD)

Asking Price Not Disclosed

Cash Flow $3,277,000

Sales $5,814,000

Deal Terms

Represented by broker? Yes

Buyer Fee? Available On Request

Seller Financing? Available On Request

Willing to co-broke? Available On Request

Principals only? Available On Request

Franchise? Available On Request

Management will stay? Available On Request

Relocatable? Available On Request

Real Estate? Available On Request

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