For Sale: Beauty Supply Distributor - Profitable, M-F 9-5 - San Francisco Bay Area

Description About This Posting: Beauty Supply Distributor - Profitable, M-F 9-5

This well-established business is the exclusive West Coast distributor of some of the leading brands in personal care products, including for nails, body, skin, and hair, and tools for professionals in the spa, hair salon, and nail care industries.

Over 25 years in business, they sell to professionals, retailers, distributors, and online vendors. The business is highly profitable and easy to run, with hundreds of long-term recurring customers. They are selling mainly to sub-distributors and large volume customers that include specialized "big-box" retailers and selling organizations including online sellers using a variety of selling platforms and personalized internet stores.

Annual sales are approximately $930,000, with Seller's Discretionary Earnings ("SDE") of about $182,000+. The company maintains an efficient, affordable office/warehouse space in the San Francisco Bay metro area. However, the business is easily relocatable almost anywhere in northern California.

There is an opportunity that a new owner may choose to explore to expand in the direct-to-consumer online market, with two competitive advantages: (1) distributor level wholesale costs, and (2) extensive availability of product inventory two of the biggest impediments to retail online marketing.

The two owners currently operate the business without employees, with available experienced per diem helpers available to assist on an occasional basis. It definitely could be run on a semi-absentee basis, or by one owner-operator with a clerical/shipping assistant.

Physical assets include all office and warehouse furniture and shelving; computer systems, printers, and server; phone system, etc. Intangible assets include trade name(s), web site(s), and several inter-related domain names.

There are over 1,000 customer contacts in the database, with more than 200 active, and more than 100 ordering monthly or more frequently. Almost all customers are wholesalers, distributors, or retailers; any direct-to-consumer sales are minuscule and inconsequential. The majority of orders are in the $5,000 to $20,000 range, with the average sale being about $6,000. This is a business-to-business, Monday-to-Friday, '9 to 5' enterprise.

The owners spend nothing on marketing and sales generation; all the sales activity and growth is purely organic and supported by the advertising of manufacturers. A prospective buyer could increase sales (and profits) by employing modest advertising, marketing, and sales efforts. Tangible Assets ('FF&E') at replacement cost: $50,000+.

The business is run from a 2,500 sq. ft. warehouse/office space (that may also be used for retail, if wanted), with an assumable rent of $3,600/month, including CAM charges. The business can also be relocated and operated from a different location.

The Transaction will be for the purchase of the entire business. The asking price is $479,000 (~2.6X SDE / ~50% annual gross), plus then-current inventory at cost (approximate value: $200,000). Sellers will provide all necessary training and support for a seamless and easy transition. Some seller financing may be available for a qualified buyer with adequate collateral. The transaction would include the transfer of all tangible and intangible business assets, including but not limited to all FF&E, customer database, vendor relationships, website(s), domain name(s), phone numbers, trade name(s), intellectual property, etc.; but, not including A/R, A/P, cash-on-hand, lease security deposit, and business entity (unless the LLC itself is purchased), with inventory acquired at a to-be-negotiated cost-basis price.

Bonus: The purchaser of the business will have the option of also acquiring another business owned by the same principals as part of the same transaction. This business is comprised of two valuable assets: (1) an online sales platform with existing SEO; and (2) a proprietary beauty care line, including trade secrets, vendor/supplier information, customer base, and trademarked branding.

Note: All data on this business are provided by the Seller for information purposes only, and no representations are made by the Broker as to accuracy. The Broker has made NO independent verification of the data contained herein. The Broker represents the Seller and does not represent the Buyer. The Buyer is advised to perform independent due diligence and seek the advice of professionals prior to purchasing the Business.

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