A strongly profitable and well positioned online retailer of high quality products for the home and garden is exclusively being marketed for sale by Morton Christie Ltd.
The business was set up by the current owners as a lifestyle business to bridge a gap until full retirement. However, the rate of its success has denied the owners the level of work / life balance they were seeking from the venture, which has encouraged them to accelerate plans to sell the business and allow new owners to sustain the current levels of growth.
The business is currently located in Warwickshire but is easily relocatable. It sells almost exclusively to the end user and operates a pseudo drop-shipping model, with payment taken ahead of purchasing the product from suppliers. It therefore only holds a nominal level of stock and is strongly cashflow positive. It does however typically undertake delivery of high value orders itself, providing a ‘white glove’ delivery and installation service to the customer. Thus the business differentiates itself from its garden centre competitors on range and price, while differentiating from pure online businesses on delivery and customer service. Notably the product range is one that is not well suited to the pallet distribution model, which provides the business with further protection.
The company is currently managed and run by the 2 owners, with ad hoc subcontract support as required. The available information memorandum identifies the replacement resource required to replace the vendors (and associated cost) should the purchasers wish to operate the business at a more ‘hands off’ level.
Sales are expected to reach £675k in the current year, delivering profits before owner drawings of c £250k. The conservative forecast for next year is sales of £600k and profits before owner drawings of £220k. The slight reduction in sales reflects the reality of an uplift in demand as a result of Covid in 2020, but the vendors are also mindful that in the latter half of 2020 sales were suppressed by supply chain constraints (again due to Covid) and that reputation, customer service and SEO work also continues to drive organic growth in the business.
The guide price for 100% of the shares of the company is £475,000 and the business will be sold with a debt free, cash free Balance Sheet. The acquisition will suit both trade buyers looking to extend their product range or strengthen their online presence, or private individuals or small teams looking to purchase a profitable online retail business with significant further scope for development.
Enquiries should be directed to Morton Christie Ltd at firstname.lastname@example.org. Please do not attempt to contact the vendor direct.
Is this business relocatable: