Wholesale Distribution Biz in Hudson County-33101

Not Disclosed, NJ
Hudson County

Asking Price: Annual Revenue:
$2,500,000 $7,500,000

Wholesale/Distribution: Non-Durable Goods

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RE: Wholesale Distribution Biz in Hudson County-33101 Broker: Gerald Nimberg

Quick Facts

Asking Price: $2,500,000
Annual Revenue: $7,500,000
Net Profit: Not Disclosed
Cash Flow: $500,000
Total Debt: Not Disclosed
FF&E: Not Disclosed
Real Estate: Not Disclosed
Year Established: 1988
Employees: 7
BBN Listing #: 96274447
Broker Reference #: 33101

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Business Overview:

There is flexibility in the price to the extent a Buyer will allow the Seller the opportunity to expand the business on a shared profit, Royalty or commission basis. The Expansion Plan would, of course, have to be developed by both parties. THIS IS A RECESSION PROOF BUSINESS. OTHERS SAY IT, WE MEAN IT. This well-established, high volume 30-year old Company distributes Canned Goods, Paper Products, Cleaning Supplies, Household Needs and General Merchandise to Supermarkets, Grocery Stores, Bodegas, Restaurants and Cafes. Customer orders are placed by phone; picked by the Company at night and delivered the Next Day. Product is shipped COD; payment is made by check (20%) or credit card (80%). Delivery fees are charged - either fixed fees, or percentage based depending on the customer. The Company's supplier provides the Company with more than $7. 5 million worth of Inventory annually at prices that are at or below typical wholesale costs. And, the supplier provides the Company Rent Free Space, Access to its vast warehouse of Inventory; Access to its enormous customer base (35,000 merchants); Bi-weekly promotions; financial incentives to move product ($8 to $10 million credit line), and often added Supplier price discounts and Incentives. Thus, the Company to be acquired enjoys the following: No occupancy Costs; that is No Rent and Utility Costs, No Warehouse Costs; that is No Inventory and Storage Costs, No Carrying Costs; that is, an $8 to $10 million credit line and two weeks to pay for items which are bought and delivered COD, No Promotional Costs; that is No Costs to grow its customer base. The Company's costs are limited to the distribution. It services 5,000 active customers who buy on average $2,500 per delivery. It employs six drivers, six helpers, four pickers, four commissioned sales reps and it utilizes eight box trucks and an office staff of three.Expansion-further development of this Company is planned following necessary improvements:Technology: It does everything by hand and in order to grow and really profit, it needs an on-line ordering system and a back-office data capture and record keeping billing system. Niceties would include the installation of a payroll system to help manage the expected growth in manpower.Management: Professional credit and financial analysis. This Company had been two-thirds larger several years ago when it extended credit; but, it did so without professional credit analysis and suffered several sizable bad debts. Its response was to eliminate all extensions of credit and, in doing so, it reduced its revenues from $12.5 million annually to its current $7.5 million. Thereafter, a Buyer can expand the business in the following ways:(i) Establish Analysis and extension of credit on a case-by case basis; (ii) Enter the New York market by establishing a hub in NYC with a company that distributes a similar or a compatible product line; (iii) Sell to Institutions such as hospitals, nursing homes, assisted living, hotels, jails, schools; i.e, anywhere where people are housed or fed, (iv) Bulk Purchases: Buying in bulk items that move quickly and are deeply discounted for resale to its vast customer base.

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Reason for Selling:

Other Interests.

Additional Details:

  • The property is leased.
  • The owner is willing to train/assist the new owner.
  • This is not a homebased business opportunity.
  • This is not a franchise resale opportunity.

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