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Packaging & Wholesale of Holistic Goods: Owner will stay 5 years and carry 40%

Fulfillment and distribution to smaller wholesalers – with multiple distribution centers!

CASH FLOW
$9,835,970

Specifications

  • Revenue
    $30,002,723

  • Cash Flow
    $9,835,970

  • Inventory
    $3,881,595

  • Location
    Orange County, California

  • Service Area
    Across the United States, 35 states legalized low dose CBD/THC, with more coming. They ship the nicotine-related products to all 50 states.

  • Reason for Sale
    Expand with a Strategic Partner or Equity Group who can bring strong business acumen and who may want to grow into manufacturing, bringing it in house to boost profit margins.

  • Profit Margin
    36%

  • Employees
    39: CFO, General Manager, VP of Sales, Retail Lead, 2 Manufacturing Leads, Warehouse Lead, 4 Warehouse Associates, 5 Sales Reps, 24 Packagers

  • Industry
    Manufacturing/Fabrication

Boasting sales of $30MM, this B2B business has two primary client types: smaller wholesalers and direct to shop owners. Services include wholesale, coordinating manufacturing, packaged development with fulfillment, and arranging logistics through 3rd party freight. This team includes a CFO, General Manager, VP of Sales, Retail Lead, 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. 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. The current owner recently reinvested significant amounts of time and money into expanding operations, including moving to a distribution center twice the size to handle the growth. They operate out of a 12,000 sq. ft. distribution facility in Southern California. In 2023 they added another distribution center in Florida. 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 40% carry or equity roll combo as a sign of a vested interest in the business’s success. 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.

This business is priced at $49,000,000, producing a 30% profit margin! There are 43 well-known and respectably sized Private Equity Groups and dozens of publicly traded companies that own very similar businesses! Another growth area is in manufacturing, bringing it in house to boost productivity.

 

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210 N 78th St. 2nd Floor
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The Firm makes no warranties or representation in consideration to the information provided above. All communication regarding this business must occur directly with The Firm Advisors, LLC. The Firm is not a real estate brokerage and does not sell real estate. The Firm solely advises on exit strategy.