Medical Supplies Retailer - 15 Years Old - SBA Eligible

Executive Summary

Upward Exits represents an eCommerce retailer in the drug and alcohol testing market. This business sells drug testing kits primarily to businesses. 

This business was founded by two partners in 2003 as a testing facility and soon found success selling online. Many of the businesses clients are businesses that have been purchasing from the site or calling in orders for a number of years.

One partner has since bought out the other, successfully operated the business himself and is ready to retire.

IndustryToxicology / Medical devices
Business Modele-Commerce
Time Commitment (from seller)15 Hrs./ Week
Age15 Years
12 mo. Profit$192,000
Asking Price$550,000 + Inventory 
Approximate Inventory$10,000
Valuation Multiple2.85 X

Marketing

Unlike almost all other e-commerce businesses, this business is not heavily focused on marketing. It only has a couple of it’s products listed on Amazon, one listed on Google shopping and has done no social media advertisements. Since it operates primarily as a B2B retailer and has been around for over a decade, the business has a sizable book of clients that provide residual income.

Deal Structure

Unlike most digital businesses, this business will qualify for an SBA acquisition loan to a creditworthy buyer. This provides both a cash payment for the seller and favorable financing terms for the buyer. The cost of inventory can be held back for a period of time if necessary.

Opportunities & Risks

The buyer has maintained the business but has not put any resources into marketing or growing it.

  • The website(s) need to be redesigned
  • New B2C advertising channels can be utilized. Amazon, Social media, SEO, etc.
  • B2B sales channels such as trade shows, direct mailers and targeted email marketing will likely be the first step for the businesses growth

Buyer Profile

This business lends itself to a wide array of buyers but will likely sell to a career changer or portfolio company. Career changers will like the business because it has a much higher degree of safety than most e-commerce businesses based on age and residual clientele. Portfolio companies will like that the business has a residual customer base, great supplier relationships and has untapped growth potential when they are able to invest time and expertise on digital marketing and web design.

Summary

IndustryToxicology / Medical devices
Business Modele-Commerce
Time Commitment (from seller)15 Hrs./ Week
Age15 Years
12 mo. Profit$192,000
Asking Price$550,000 + Inventory 
Approximate Inventory$10,000
Valuation Multiple2.85 X

Operations

The seller currently runs the business himself on ~15 hrs./week. He fulfills orders himself but a buyer could utilize the services of a third party logistics company (3pl) to streamline order fulfillment and eliminate the need for a warehouse. A number of the businesses suppliers have also showed willingness to fulfill the orders on a drop ship basis.

Finance Overview

The seller has utilized quickbooks as well as the services of a professional accountant. The majority of the seller’s discretionary earnings are shown on the tax returns which will help a qualified buyer obtain financing through our SBA lending partners or other participating financial institutions.

Reason for Sale

The seller started the business over a decade ago with a partner performing drug testing for businesses in their community. He has seen the business grow and change over his years at the helm and is ready to retire and focus his energy on other projects.

Request More Information

This business is under a signed letter of intent. We keep the listing on the market until due diligence closes.