Fulfillment And Distribution To Wholesalers Of Holistic Goods For Sale

They focus mainly on Distribution and Logistics to other smaller
wholesalers which make up 59% of their revenue, while 38% is sold
Business to Business to multi location owners; less than 3% is sold
direct to the consumer and this is intentional for research and
development purposes. Boasting sales of $30MM, this B2B business
has two primary client types: smaller wholesalers and direct to shop
owners. Services include wholesale, coordinating manufacturing,
packaged development with fulfillment, and arranging logistics
through 3rd party freight. The current owner recently reinvested
significant amounts of time and money into expanding operations,
including moving to a distribution center twice the size to handle the
growth. They operate out of a 12,000 sq. ft. distribution facility in
Southern California. In 2023 they added another distribution center in
Florida. This team includes a CFO, General Manager, VP of Sales,
Retail Lead, 2 Manufacturing Leads, Warehouse Lead, 4 Warehouse
Associates, 5 In House Sales Reps, 24 Packagers, and 19 Outside
Sales Reps. They do not have any drivers, all are outsourced. The
goal for selling is to expand with a Strategic Buyer or Equity Group
who can bring strong business acumen. The owner will remain on
board for 4-5 years and is willing to do a 30% carry or equity roll
combo as a sign of a vested interest in the business’s success.
This business is priced at $39,500,000, producing a 30% profit
margin! Another growth area is in manufacturing, bringing it in house
to boost productivity. Currently there are 36 States who have
recognized these Low-Dose consumables as a legal product and
there are projected to be another 7 states that will follow suit in the
next 6-9 months. The business does not sell any traditional cannabis
products but rather regulated hemp which allows them to legally sell
across state lines.