Back to Listings Ecommerce Woodworking Tool Retailer - 14yr Track Record, 55% Gross Margins

Asking Price : $750,000

Annual Gross Revenue : $1,251,960

Annual Net Profit : $357,808

Profit Multiple : x2.10

Inventory Value: -

R-Index : 168

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From the Broker

This unique ecommerce business specializes in the sale of high quality hand tools.  Founded in 2002, this long established and very profitable niche retailer offers hand planes, carving tools, sharpening stones, chisels and gouges, hand saws, measuring & marking tools and timber & log tools. The company’s business model has been instrumental in allowing for an attractive working capital structure that requires minimal fixed overhead expenses.  The business has processed over 100,000 orders since inception and their “A+” rating with the Better Business Bureau is just one example of the company’s prestigious reputation.  The owner has placed an overall focus on providing the highest quality products at the lowest possible prices, while providing top-notch customer service.  The result has been an extremely loyal customer following, as is further illustrated by the company’s impressive 30% repeat business rate.

This business has established a strong presence within their niche and has continued to produce 55% gross profit margins and 25% net profit margins.  Even with a proven 14 year track record of consistent cash flow, this business continues to thrive in 2016 and there are several immediate growth opportunities that give this business substantial potential moving forward. This easily relocatable business can be operated from anywhere in the U.S. and only requires approximately 2,000 sq. ft. to maintain the inventory and operate the business.  While the seller has certainly enjoyed the reliable cash flow produced by this business, he has another unrelated opportunity available and thus needs to sell this asset.  Ultimately, this high quality acquisition opportunity represents an outstanding value with a generous return on investment and has been priced to sell at only 2.10x cash flow.

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Listed By

Sale Pending: No

First Seen: Tue, Nov 15th 2016

Last Updated: Sat, Oct 21st 2017

Rhodium Weekend 2015
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