B2B Wholesale & Distribution: Legalized Consumable

This B2B business has two primary client types: smaller wholesalers
and direct to shop owners. They focus mainly on Distribution and
Logistics to other smaller wholesalers which make up 59% of their
revenue, while 38% is sold Business to Business to multi location
owners; less than 3% is sold direct to the consumer and this is
intentional for research and development purposes. Services include
wholesale, coordinating manufacturing, packaged development with
fulfillment, and arranging logistics through 3rd party freight. They
operate out of a 12,000 sq. ft. distribution facility in Southern
California with a new distribution space in Florida which was added in
2023 to keep up with the growth and demand. The operations are
managed by the leadership team which includes a CFO, General
Manager, VP of Sales, and Retail Lead, with 2 Manufacturing Leads,
Warehouse Lead, 4 Warehouse Associates, 5 In House Sales Reps,
24 Packagers, and 19 Outside Sales Reps. They do not have any
drivers, all are outsourced. The goal for selling is to expand with a
Strategic Buyer or Equity Group who can bring strong business
acumen. The owner will remain on board for 4-5 years and is willing
to do a 35% carry or equity roll combo as a sign of their vested
interest in the business’s success.
This business is priced at $37,000,000, producing a strong profit
margin! Another growth area is in manufacturing, bringing it in house
to boost productivity. Currently there are 36 States who have
recognized these Low-Dose consumables as a legal product and
there are projected to be another 7 states that will follow suit in the
next 6-9 months. The business does not sell any traditional cannabis
products but rather regulated hemp which allows them to legally sell
across state lines.