PRICE: $ 450,000
CASH FLOW: $150,753
Profitable, Competitive, Flexible, and Lots of Growth Potential
For over a decade, this dry good distribution company has been delivering local and national favorites to very small and large retail companies. It primarily focuses on dry goods for the food industry. This company has a great reputation and a wide variety of products. The company was purchased several years ago, and the owner kept the existing client base. The current owner will stay around for a smooth transition to allow for the next new owner to provide the same excellent opportunity.
While there are no contracts forcing customers to stay with the business, this dry good distribution company delivers a solid product distribution solution and a unique niche that is welcome by both the product suppliers and the retail establishments that rely on them.
The company rents warehouse space close to the owner’s home. There is a three-year lease, but it allows for 60-day notice for the tenant to be released from lease obligations. This will allow for a new owner to move the warehouse to a location convenient to them. Refrigeration units are not needed for the current product line. All products are stored on pallets and shelving. The storage area includes pallet jacks, shelving, and other basics for maintaining an orderly warehouse. The current area is not very significant in size and can probably be replaced with about 1000 ft.² of similar space.
Lease rate: $950/month
One advantage over the competition is that this dry good distribution business is small, agile, and resourceful. The owners listen to what the clients need and try to bring in the most requested products. They also keep an eye on what’s happening in the marketplace and try to develop new relationships with special vendors.
Most of the competition are much larger companies that don’t have the flexibility for the manpower to listen to the clients.
There are several ways to grow this business. One would be to find new clients that want to provide their products. Stay in touch with the food shows and local food markets are other ways to grow. For example, when the owners were on vacation outside the state, they checked in with other small businesses, which led the owners to discover new products to bring into local businesses.
Additionally, there are lots of small businesses that they’ve yet to call on. Stopping in person, especially at locations that are on the way from one existing business to another, is a great way to find new clients.
The owner is ready and prepared for full retirement. Will sign non-compete and will help in the transition of ownership of the business.