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Extremely Profitable Multi-location e-Cig Retailer
NCListing DetailsOffice ID: RETAIL8
Status: Sold
Listing Broker: Jeff Snell, M&AMI, CBI, ABI
Listing Price: $0
Gross Revenue: $2,134,912
12 Month Forecast: $5,100,000
Inventory: $400,000
Inventory Included: Yes
FF&E: $100,000
FF&E Included: Yes
Sales Structure: Asset Sale
Seller Financing: Yes
Seller is willing to consider a component of seller financing consistent with typical commercial lending and SBA guidelines. Seller forecasts $5,000,000 in sales over the next 12 months not including the wholesale business activities with a minimum of $1,000,000 in net profit.  Actual transaction price will be adjusted based on actual inventory, annualized revenue and net profit at time of sale. The wholesale business is not included in this listing and is available for an additional cost.
Reason for Sale:
Owner wants to focus on his e-Cig wholesale distribution business.
Seller will provide complete training and support during negotiated transition period.  Seller will sign a non-compete encompassing e-cigarette and related products sold at retail.  If buyer also acquires the wholesale operations Seller will sign a similar non-compete encompassing wholesale sales.
OperationsYear Established: 2011
Form of Ownership: S Corp
Employees (full-time): 41
Employees (part-time): 6
Managers: 9
Business Hours: M-F 9am to 9pm, Sat 10am-6pm, Sunday 12pm to 6pm
Business Description:
The business sells a wide variety of electronic cigarettes, e-liquids, batteries, as well as related supplies and accessories via retail storefronts and online via their e-commerce enabled website.  Each location keeps approximately $20,000 of inventory on hand with 30-40 products offered in multiple colors/options plus over 100 different E-liquid flavors. Electronic cigarettes, also known as e-cigarettes, are a tobacco alternative with no smoke, tar or carbon monoxide making them preferable to tobacco based products and able to be used in more locations. The products are higher end, and often US made resulting in a higher quality range of products that create loyal repeat customers. Net margin averages 50% of sales.  
Historical Summary:
The business was started in September 2011 from a single location.  Since that time the company has continued to grow exponentially via new store openings, product diversification and online sales approaching 10 locations.
Owner Qualifications:
Current owner is not technically absentee, but is only working on the business ~20 hours per week.  New owner should have general retailing experience, accounting, marketing, HR and purchasing experience (or be willing to hire for these skill sets). Some familiarity with websites, search engine optimization, pay per click advertising a plus.
This business is the marketshare leader in the areas which they are located.  The industry is exploding and first movers and established operators are likely to stay ahead of those that are just contemplating the business opportunity.
Potential Growth:
Current owner is opening new locations as fast as locations can be identified and leases signed.  Current owner is also operating a wholesale division currently with ~20-25 retail customers which may be available for acquisition depending upon buyer interest and terms. Buyer could use the retail and wholesale operations to launch a national franchise system.
LocationType of Location: Strip Center
Real Estate for Sale: Yes

This business is approaching 10 retail locations in North Carolina as well as an attractive e-commerce website.  All properties are leased with typical leases having 2 years remaining on average.  Average size is 1,400 feet.  Since customers seek out retailers of these products locations do not require expensive high traffic locations.

The company also does business online via their e-commerce enabled website.  Accepted payment types are Visa, Mastercard, AMEX, Discover and PayPal.

Last Updated: Dec 18, 2017 / 11:53 AM
Financial Information Current As Of: Apr 6, 2014 / 2:04 PM