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General Line Grocery Merchant Wholesaler |
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| Listing ID: 53451 |
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| Listing Details | |
| Industry: | General Line Grocery Merchant Wholesalers |
| Title: | General Line Grocery Merchant Wholesaler |
Listed Price: |
$1,600,000 |
Total Sales: |
$19,000,000 |
| Owner Cash Flow: | $600,000 |
| Financing / Terms: The business qualifies for an SBA 7 (a) loan of $1,000,000 and seller monies. Wells Fargo SBA Lending will provide the first lien debt financing. |
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| Reason for Sale: Lifestyle Change |
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| Training & Support: The owner will stay on as long as the buyer needs his assistance within reason. If the time period exceeds a certin period a consulting agreement will be entered into with a reasonable amount of compensation. |
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| Executive Summary | |
| Business Description: The business wholesales cigarettes, candy, and beverage products to newsstands, convenience stores, delis, and lobby stores. In total, the business services 250 accounts and 80% of its business derives from Manhattan stores located between down-town and 90th Street. The business also maintains a small account base in Brooklyn, Queens, and the Bronx which makes up 20% of its business. The product mix is broken into 3 categories: 1) Candy; 2) Beverage; 3) Cigarettes. Cigarettes, which is a source of 70% of the business’s revenue, has 3.5% gross profit margins and serves as a draw for its customers to buy other higher margin items. Candy constitutes 20% of the business’s revenue and includes chocolate products, gum, m&ms, snickers, Oreo cookies, cookies, mints, pop tarts, cereal, twizzlers, and other candy products you would see at a newsstand or convenience store. In addition, sold within this category is general merchandize items such as batteries, film, and small cameras. Typically, both general merchandize and candy items are sold at 12% to 15% gross profit margins.The 3rd profit center is the sale of soda which includes the sale of pepsi, coke, and other beverage items such as vitamin water, red bull, and Gatorade. Gross profit margins for this line range from 15% to $20% and this line constitutes 10% of sales. The business is operated with a full time working owner and 9 employees which include 2 drivers, 2 helpers, 3 warehouse people, and 2 administrators. Salaries range from $400 per week to $500 per week. On average, the business operates with $500,000 of inventory and carries $300,000 in Accounts Receivables (within 60 days). Typically, the business does not extend much credit to customers. Most of its deliveries are executed through COD. Also, its inventory moves very quickly since its customer orders are consistent. All orders are taken before 9:30 a.m. in the morning. At the moment, the business does not sell via cash and carry. Upon making a deal with a new owner, the owner has agreed to leave $100,000 worth of inventory in the warehouse and help build credit relationships with the business’s current suppliers to fully stock the warehouse once the new owner takes over. |
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| Historical Summary: The business was established in 1998 originally by 5 partners. Overtime, the current owner bought his partners out to become the sole owner. |
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| Competition: There are quite a lot of sub-jobbers in this industry. However, most business growth with word of mouth or acquisitions. Ornic growth provides some obstacles but is a great way to obtain new business. It is a commodity product but pricing will vary upon service and reliability. |
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| Potential for Growth: Hire salespeople. Target Uptown Manhattan and other 4 Boros. Sell other items such as phone cards. Do acquisitions focusing on the expansion of the core products that constitute the net profit margins of the business which namely are beverages and candies. |
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| Operations | |
Year Established: |
1998 |
| Days & Hours of Operation: | 7a.m. to 7p.m. (Monday thru Friday), 8a.m. to 4p.m. (Sat) Closed on Sunday. |
| Number of Employees: | 9 FT |
| Location | |
| Type of Location: | Not Specified |
| Square Footage: | 4500 |
| Facilities / Location Description: 4,500 square including basement. |
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| Monthly Rent: | $3,300 |
| Lease Expiration: | 2/6/2012 |