This online retailer, established some 15 years ago, has an excellent reputation with its customers, suppliers and principle outlets (Ebay and Amazon). Its name is one of the best-known in the industry.
The sale of this business represents a unique opportunity to purchase a substantial online retail business, significant in the motorcycle, motocross and cycling sectors and with very significant opportunities for substantial growth – ‘low-hanging fruit’. The vendor wishes to retire from the business.
The website features around 250 different brands including some of the biggest in the sectors in which it operates. However, very little product is sold via the retailer’s website and this is one of the many opportunities for growth. Instead, the majority of sales come via Ebay trading from 1 of the oldest established Ebay shops. Amazon is also an important outlet albeit there is also an opportunity to grow this ‘leg’ substantially as well by exploiting the opportunities represented by ‘Fulfilment by Amazon’.
The business is housed in a series of rooms on 2 levels in an old industrial property. There are 4.5 administrative staff including the vendor and 2 full and 2 part time staff in the warehouse. The purchaser will be expected to relocate the business as soon as possible after Completion. It is thought that the whole operation could be rehoused in less than 1000 sq ft. The business could be relocated anywhere in the UK.
Over the past 4 years the turnover has ranged between £1.5M and £1.7M. Adjusted Profit before the owner’s costs in the current year are expected to come in at c £80K. It was about double this in 2014/15 with the key determinant being the attention the owner is able to give to margin control. At current levels, stock is probably valued at around £100K.
The Guide Price for the Assets and Know-how and Good will is £249,950K plus stock at valuation. Apart from stock, the assets comprise computers and shelving. The vendor will provide handover support for up to 6 months on a remote basis.