Summary: 
Cash Flowing close to $400,000 in the online retail market
Business Type: 
online businesses
Location: 
Nebraska
Price: 
$1,700,000
Sales Revenue: 
$3,828,285
Cash Flow: 
$396,485
Realestate Included: 
No
Inventory: 
$316,208
Employees: 
8
Internal Listing:: 
RET016
Reason for Sale: 
Other business ventures

Cash flowing close to $400,000 in the online retail market, this web-based children’s store has been established for over 10 years. This company has built a legion of fans, demonstrated by more than 29,000 “likes” on Facebook. 2015 saw impressive sales numbers topping $3.8 million, a 20% increase over the previous year.
At present, 65% of orders are drop-shipped from the vendor and 35% sent from the 4,000 square foot warehouse in the Omaha area. Eight employees handle order intake and shipping while and marketing and customer service are outsourced to an offsite team. Included in the purchase is $69,095 in equipment, $316,208 in inventory and a $31,606 website redesign already in progress.
Generating an average ticket price of $65.58 and targeting a 20-65+ female demographic, the company is well-diversified. Sales come from not only the branded site but also from partnership sites including Walmart, Macys, Amazon and EBay.
An incoming Buyer with a 15% down payment would receive a Net Operating Income of $140,403 after all business expenses and loan payments are made.

Financial Overview
List Price: $1,700,000
Gross Sales
2015: $3,828,285
2014: $3,169,641
2013: $3,314,135
2012: $3,488,254
Owner Profit/Cash Flow
2015: $396,485
2014: $254,877
2013: $250,159
2012: $121,751
YOY Growth: 20% sales growth from 2014 to 2015
Profit Margin: 10%
Multiple: 4.3 *Multiples range from 1-5, with the average being 3
Valuation: 2015 Cash Flow x Multiple = Price
$396,485 x 4.3 = $1,704,885

Assets Included in Purchase: $416,909
Equipment: $69,095
Intangible Assets: $31,606 website redesign in progress (already paid for); mailing database that generated $177k of revenue in 2015
Build-out: $20,311
Inventory: $316,208 (rotates up to 33x each year)
*amounts may vary
Business Information
Year Established: 2005
Location: Currently warehoused in Omaha, NE but can be relocated anywhere
Average Daily Site Visits: 5,500
Average Ticket Price: $65.58
Lease: 4,000 square feet @ $2,500/month
Employees: 7 FT, 1 PT handling orders and goods shipping
Reason for Selling: Other business ventures
Seller Training Period: Up to 3 months
Growth Opportunities: Partnerships with other sites; use site as a reseller for other entities, build name-brand clothing line
Current Owner’s Responsibilities: Owner runs passively with majority of the time focused on other business; views reports from out-of-town

Funding Example
Purchase Price: $1,700,000
15% Buyer Down Payment: $255,000
10% Seller Financing: $170,000
75% Bank Loan: $1,275,000
This bank loan can be partially collateralized by the hard assets of the business, including $69,095 in equipment and over $300,000 in inventory.
In the above example, an incoming Buyer would receive an annual Net Operating Income (NOI) of $140,403 after all business expenses and loan payments.

Contact The Author of This Listing

Please include your contact info (Phone Number, Address, etc) and other important information.
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.
8 + 1 =
Solve this simple math problem and enter the result. E.g. for 1+3, enter 4.
By submitting this form, you accept the Mollom privacy policy.