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Fri, Feb 28 2020 10:03:05 AM  |  /

Well Established & Profitable E-Cigarette/Vaporizer Business

Business Id:000387     |    Reference: EB064
Leasehold Price:
£600,000.00
Business Description

Well Established & Profitable E-Cigarette/Vaporizer Business
Ref. EB064
Location : East of England
Asking Price : £600,000 (plus NAV)
Turner Butler has been appointed to invite offers of purchase for this established and highly profitable specialist vaping business that has an excellent customer base and established retail and website presence.
This business was set up by the owner 7 years ago Having worked with a number of global manufacturers and carrying out extensive international due diligence, the owner established a business to provide the best vaporisers and the finest naturally derived flavours in the market as well as a range of accessories and support.
The business has grown predominantly through word of mouth and repeat business. All the staff are experienced advisers in the vaping industry and have a wide breath of knowledge on specialist products.

 
Business Information
Turnover:£1,200,000.00 Annually
Property Status:   Leasehold
Is this business relocatable: No
Business Sector: Miscellaneous businesses, Off Licences
Statistic Information
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Business Profile
Equipment: The company has all the necessary infrastructure for a new owner including financial software, till systems and an online shop and payment portal.
Key strengths: • Having successfully traded for many years this business has built up an enviable reputation based on service. • Superb customer base. • Impressive levels of customer retention and repeat business. • Great retail presence across 5 sites including shopping centres. • Excellent profitability • Significant scope for further expansion • Excellent staff
Key Opportunities: The vendor has built a good team of sales people who have established a solid track record with impressive profits. The model is simple and proven. The company has five retail outlets, a warehouse and a fully functional online shop. There are numerous opportunities to develop further sites and the owner has a track record and proven model to mobilise sites further sites quickly and with minimal costs. There are many other opportunities for growth both within the current retail sites and expanding into further sites. There is an opportunity to increase sales through strategically located retail outlets with adjacent car parking. There are also numerous opportunities for retail ‘pods’ to be located in prominent retail shopping centres. The online shop could be further developed with specialist video tutorials and link building to other forums.
Financial performance: The business is being offered for sale on a going concern basis, all financial discussions will take place directly between the vendor and all interested parties under the auspices of Turner Butler. The business achieved turnover circa £1.2m per annum last financial year. Resultant gross profits circa £400,000 per annum. Adjusted EBITDA was circa £200,000. Equally impressive figures have consistently been posted over previous years as the business enjoys high levels of repeat business from its loyal customer base. All tills and sales equipment owned by the business is included within the sale price.
Asking Price: The Asking Price of £600,000 plus Net Assets is for 100% of the issued capital of the company. The final selling price will have a £1 for £1 adjustment for any rise or fall in this benchmark Net Asset figure of £230,000 at completion.
Advertising and Marketing: The business has historically relied on repeat business and a large percentage of turnover is from existing clients. The owner has invested funds into a dedicated website which consistently produces between £2,000 and £2,500 sales per month. Given the nature of the product there are strict regulations and restrictions on certain forms of advertising. Further marketing efforts could be developed with online tutorials, blogs and vaping forums.
Growth and Expansion: Key growth areas are expanding the retail shops where there is outside parking Expansion of retail ‘pods’ in shopping centres where footfall is high. Expanding the advice and chat forums on the current website to drive more traffic to the online and retail shops This is an ideal opportunity for a specialist bolt on to an existing vaping business or as a stand alone investment.
Premises:
Business Hours: Monday – Sunday with various opening times depending on the outlet ranging from 8 to 8 or 10 to 4.
Employees: The business has 12 staff – 2 in the warehouse dealing with the website and handling orders and 10 retail staff.
Support and Training: The current owner would be happy to provide full support at handover and may be prepared to stay on for a further period should a new owner so require subject to negotiation.

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