People ask me all the time, “Can you really buy a business with no money out of pocket?”
The answer is YES, we see these deals all the time! Here is a perfect example of one such business available right now...
Business type: E-commerce/FBA in the Beauty/cosmetics space History: Sales as high as $2,300,000 in###-###-#### Last 12 month sales $645,000 Assets included in deal:* Full currently operational business with existing DTC, FBA and wholesale customer
* $2.6 million retail value of inventory
* $1 million in pending wholesale PO's
* Email database of 8,000 customers
* Robust Amazon seller account with multiple established products, and with flagship product showing 4 Star rating with over 800 reviews
Asking price for this business? Just $749,000!
How to buy this business for zero money out of pocket? Pre-close: #1 $550k Secure short term loan to help you buy out existing owner. (Inventory based financing or asset based financing) You can pay this loan off in 6 months (see below) #2 Secure $200k in revenue based financing (RBF) against current revenues of business
DEAL DONE, with NO money out of your pocket!How to pay back the acquisition debt in 6 months?
Post close: #1 $200k by utilizing net profit from finalizing the pending $1 million in wholesale PO's using PO factoring to get the deal done fast with no money out of your pocket to fund inventory production #2 $600k in profit from selling existing $2.6 million in inventory #3 $48k from emailing third party offers to existing email list (We average $1 per month per email in pure profit)
Just these three activities will generate you $848k total cashflow!
This simple acquisition process pays off your initial acquisition loans so you own the business free and clear, puts an extra $100,000 in your pocket, and you've got a thriving direct to consumer business in your portfolio!
PS – Here is a link to the actual business for sale if you want to take a closer look at it: https://www.westboundroad.com/clean-beauty.html
Sign in to see all replies.
Create an account.