B2B Wholesale & Distribution: Legalized Consumable

Business Overview:

This B2B business has two primary client types: smaller wholesalers and direct to shop owners. 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. Services include wholesale, coordinating manufacturing, packaged development with fulfillment, and arranging logistics through 3rd party freight. They operate out of a 12,000 sq. ft. distribution facility in Southern California with a new distribution space in Florida which was added in 2023 to keep up with the growth and demand. The operations are managed by the leadership team which includes a CFO, General Manager, VP of Sales, and Retail Lead, with 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. 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 35% carry or equity roll combo as a sign of their vested interest in the business’s success. This business is priced at $37,000,000, producing a strong profit margin! Another growth area is in manufacturing, bringing it in house to boost productivity. 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.

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Property Features and Assets:

Inventory: $3,149,880 with Deposits of $285,486

Lease: 12,000 sq. ft. facility in Orange County, California. They moved in 2022 to add more space due to growth. Additionally, they added a distribution center in Florida in 2023

Reason for Selling:

Expand with a Strategic Buyer or Equity Group who can bring strong business acumen and who may want to grow in manufacturing, bringing it in house to boost profit margins. Kindly ask the seller for more information.

Additional Details:

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