Listing ID: 4521 Last Refreshed: 07/05/2019 Total Views: 9174
The Seller is seeking to sell, a profitable online retail and / or physical store (the “Business”) selling international premium beauty products from top international brands.
Financials & Selling Price
§ The Business has year-to-date (YTD ‘Jul 2017) revenue S$410,764, projected to $1m by calendar year end. YTD gross profit stands at $182,617, averaging $26,088 per month.
§ Inventory on hand as at 16 Aug 2017 amounts to a unit quantity of 48,440 and is value of S$259,944, with sales value of S$462,700 at current market prices.
§ Asking price of seller is $550,000
§ Products consist three flagship brands (with exclusive distributorship) namely Medavita (Italy), Organic Surge (UK) and Trilogy (NZ).
§ Other major brands distributed by the Seller are Albabotanica, Annasui, Avalon, Avene, Bobbibrown, Christiandior, Fancl, Fresh, Jurlique, Kaloo, Nuxe, Puressentiel, and T.Leclerc.
§ The Seller, through 14 years in the trade, has established privileged purchasing relationships with its major inventory suppliers based in HK and elsewhere, enabling the sourcing of its inventory at well below market levels.
§ The Buyer has the option to add to the said brands and to expand the Business’s offerings at its discretion.
Seller currently supplies and / or sells its products to:
1. End consumers through its physical retail store;
2. End consumers through its online stores which include Redmart, Qoo10 (“powerseller”), Zalora and Lazada, with a fan base consisting 17k followers; and,
3. Island-wide wholesale supply chain currently serving retail stores such as Metro, Watsons, Robinsons, Unity, Atrium, numerous general trade stores and over 200 beauty and hair salons throughout Singapore, with whom the Seller has fostered and established a long running supply relationship.
Reason for Sale – Conflict of Interest
The Seller has exclusive rights in Singapore to certain brands in APAC region. One such brand which the Seller has distributed for the past 14 years has been so successful in the region (Singapore is the global #2 selling store) that its European based MNC owner decided to merge with and acquire (M&A) the Singapore operation. This re-established its Singapore target as a wholly owned subsidiary, and in the process hiring the Seller as MD and also retaining her entire team in the process. Due to conflicts of interest arising, Seller can no longer own or operate said stores after the M&A deal is concluded.
Key Strengths of the Business
§ Solid and sound track record, company having been in operation since 2003 (14 years)
§ Established strategic supplier relationships in place (for purchase of inventory)
§ Singapore-wide wholesale agreements in place, to supply retail stores such as Metro, Watsons, Robinsons, Unity, Atrium, numerous general trade stores and over 200 beauty and hair salons
§ Stock level at cost valued at S$259,944 with sales value at current prices at S$462,700
§ Physical store rental will be approx. $14-15k p.m., leasing directly from landlord and not Seller
§ Online store in Qoo10 with power Seller status (- providing lowest tier 9% cut Qoo10) – and with 17k active followers
§ 2-3 staff operation at physical retail store
§ No warehouse space required due to physical store
§ YTD sales total to Jul 2017 - $410,764
§ Approx. 6-month sales total - $522,140 (Oct 2016 to Mar 2017)
§ Total assets - $ 259,946 – mainly consisting of current assets (inventory) with short term resale value (@ NRV) of $462,700 (as of 31 Jul 2017)
§ Net liabilities of S$328,761 will be absorbed and written off by Seller prior to sale
Conclusion - Summary of Benefits
§ Purchase price negated by significant inventory on hand of $259,946 with immediate resale value of $462,700, meaning seller is only in fact paying a mere premium of $290,000 over net assets and $87,300 over NRV of assets
§ Transfer of all suppliers and sources
§ Significant established wholesale relationships with large Singapore based retailers such as Metro, Watsons, Robinsons and Unity, amongst many others
§ HK based product supplier arrangements with significant discounts and preferred relationships
§ Owner / Seller will stay on as independent consultant for term of six (6) months
§ Transfer of website, online accounts, and all other physical and online media collaterals, and operating systems providing a ready-to-run business operation from day 1
Annexures (provided by formal expression of interest)
§ YTD management P&L
§ Oct 2016 to Mar 2017 management sales figures
§ Financial Statements of the retail store for the FYs 2014 to 2017 (4 financial years)
§ Detailed inventory listing as of 16 Aug 2017
Notice of Disclaimer
All of the above data is strictly provided for informational purposes only and may not be construed as investment, financial, or legal advice, and is provided on an as-is basis free of any warranties and / or representation whatsoever, whether express or implied. Buyer shall undertake all due diligence checks before making any purchasing decision.