E-Commerce Sales of Work at Height & Fall Arrest Gear
80% of sales are through Amazon!
With 80% of sales through Amazon, this e-commerce business has customers spanning the country and is currently managed by the owner from a home office. With over 12,000 customers nationwide, the company offers a variety of work at height and fall arrest gear for customers in various fields of work, including fire departments, military, FBI, industrial, and the movie/music industry. Examples of customers in need of these products: wind turbine technicians, cell tower climbers, stadium/arena rigging technicians, mid-to-high rise window cleaners, scaffolders, roofers, construction workers, firefighters, lighting technicians, steelworkers, and glaziers. The owner manages all sales & order processing full-time, while one part-time employee spends 2 hours/day packing orders into boxes. A unique software system is in place that integrates orders from various locations automatically. Although the company represents $15M worth of 3,000+ products on their website, it only carries $65k-$85k of inventory at any one time, with inventory moving & changing on a daily basis. With this highly automated system, the business can process 50 orders in under an hour.
Using 5 primary vendors, the owner orders inventory on a daily basis, with up to 15 purchase orders per day. It can take 2-4 days to get that inventory, and it moves quickly once received. After processing a customer’s order, the system generates the invoice & label, the item is boxed, and all orders are picked up from the home office by FedEx and UPS Postal Express on a daily basis at no charge.
Although some clients order directly through the company’s own website, approximately 80% of orders are through Amazon, and around $6k in sales per month are through eBay. Priced at $782,000, this ecommerce business truly has the potential to triple in revenue. A new owner could invest in more inventory and increase the number of vendors; with the right strategy in place, sales would go through the roof.
Year Established: 2012
Location: Currently run from Arizona; business could operate from anywhere
Service Area: Nationwide
Products: Headlamps, repelling ropes, friction savers, body harnesses, rescue pulleys, harness vests, rigging plates, cable anchor straps, carabiners, safety bars, etc.; website represents $15M worth of inventory
Customers: Military, FBI, fire departments, industrial, (building maintenance, high-rise window washing, cell towers, wind turbines), movie/music industry (stadium rigging, stunts, etc.)
Lease: No commercial space necessary; business is run from a home office
Reason for Selling: Pursuing other ventures
Personnel: 1 FT (Owner) sales & order processing, and 1 PT (packaging items: 2 hours/day)
Seller Training Period: 2 months
Growth Opportunities: Invest in more inventory, increase vendors
Current Owners’ Responsibilities: Sales & order processing
Assets of Business
- Assets: $65k-$85k
- Inventory on Hand: Ranges from $65k-85k; this amount changes frequently
- Intangible: Over 12,000 customers, demand for products is extremely high, customer base includes military, fire departments, industrial, and movie industry professionals, etc.
Cash Flow Analysis
|Description of Financial Statement||Tax Return|
|Net Income Shown on Financial Statement||$-50,899||$19,647||$21,985|
|Auto Expense||$922||$1,259||$766||Personal Expense|
|Meals & Entertainment||$458||$585||$218||Personal Expense|
|Business Services||$230,506||$264,165||$190,682||Paid to owner|
|Seller's Cash Flow = Total Addbacks + Net Income||$180,987||$285,656||$213,651|
|Profit Margin||14.93 %||20.24 %||17.71 %|
Offer Price: $
% Buyer Cash Down at Closing: $
% Seller Carry Back via Promissory Note: $
year term at a rate of %
% of Purchase Price secured by Buyer and Seller
Total Bank Loan Need: $
% of Purchase Price
Desired Loan Type:
Desired Bank Terms: year term at a rate of %
Total Business Assets, Inventory, and A/R: $
Total Undercollateralized Loan: $
|Monthly Payment to Bank:||$|
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|Total Monthly Debt Service:||$|
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Fixed Charge Coverage Ratio
The bank will require a minimum ratio of 1.5 to be lendable.
3-year average cash flow
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Buyer's Net Operating Income (NOI)
The amount of money the Buyer will retain as profit.
3-year average cash flow
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Buyer's Return on Investment (ROI)
The rate of return on the Buyer's down payment.
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