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Name:
#519 Rapidly Growing CBD National Operation
Categories:
Health Care
Region:
Colorado Front Range
Industries:
Wholesale Trade; Distribution; Health Care
Segments:
Health
Asking Price:
TBS
Down Payment:
TBS
Revenue:
$2,697,319  
Adj. Profit:
$760,418  
Adj. Profit Type:
Seller's Discretionary Earnings  

Rapidly Growing CBD National Operation - This company is a major player in the CBD oil business. It has become an industry leader with its own complete product line that is sold nationally on a wholesale basis, online, and through its own retail stores. The company’s growth has been exponential: 2018 revenues of $2.7 million increased by 363% over 2017. Year-to-date 2019 revenues are anticipated to exceed $4 million, with EBITDA to exceed $1 million. Internal value drivers also include high profit margins, diversified customer base, and exceptional vendor relationships. The company operates with a long-term strategy that includes franchising its brand and products throughout the United States. Multiple franchises have already been sold. Business highlights include: high quality product line, distribution channels already established, professional operation, in-house sales team, and strong online presence. The company does not grow or process the hemp. Contact Ron Brasch. BUSINESS SUMMARY

Notes of Explanation:
  1. TBS = "To Be Suggested"
  2. Seller's Adjusted Profit

The Seller's Adjusted Profit is a calculation showing the cash flow generated by the Business for the most recent tax year, unless otherwise indicated, by adding back to the net profit those costs that are discretionary to the Seller. These costs could include the owner's salary and benefits, interest paid on the seller's notes/debts that are not assumed by the buyer, non-cash expenses such as depreciation (in appropriate situations) and amortization, and certain non-recurring or unusual expenses. Details of the Adjusted Profit calculations are available in each presentation package and in our files.

"An Economic Basket"

Another way of viewing the Seller's Adjusted Profit is as the historic economic basket of benefits available to the new owner so he can:

  1. Pay himself an appropriate wage commensurate with the skill required to manage the business.
  2. Service any debt incurred to purchase the business.
  3. Receive a reasonable rate of return on the down payment invested. (The appropriate rate of return depends on market conditions and the size of the business. For smaller transactions the rate of return on investment is not usually a significant factor in the valuation.