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Cash Flows $1.35M Solid on $3.8M in Sales, Can Double Locations ASAP.

Denver, CO (Denver County)

Seller Financing Available
Cash Flows $1.35M Solid on $3.8M in Sales, Can Double Locations ASAP.
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Asking Price: $2,700,000

Cash Flow: $1,350,000

Gross Revenue: $3,800,000

EBITDA: $1,350,000

FF&E: $95,000

Inventory: $310,000*

Established: 2012

*not included in asking price.

Cash Flows $1.35M Solid on $3.8M in Sales, Can Double Locations ASAP.

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Business Description

100% Absentee-Owned Vape/Ecig. Biz. 8 Retail Locations

Cash Flows $1.35M Solid on $3.8M in Sales. Up 20% every year. Owner lives 800 miles away - 100% absentee-owned.

8 Retail Shops, absolutely 5-Star, A++ locations. We ARE the "Starbucks" of Vape Shops. CF $1.05M on $3.8M Solid, Largest 8 Retail Vape Locations, Just $2.2M
Vaping is NOT part of the tobacco/smoking problem-it's part of the solution. 10s of millions have been able to quit smoking because Vaping has worked for them. "It is the lesser of 2 evils", per the FDA Director.

100% Absentee-Owned Vape/Ecig. Business for Sale, Denver Colorado, Largest Vape/Ecig Retailer in the Rocky Mtn. Region - 8 locations throughout the Colorado Front Range.

2018 Cash Flow over $1,050,000 on sales of just at $3,800,000 (est.)
2017 Cash Flow was $817,073 on sale of $3,594,933
2016 Cash Flow was 721,069 on sales of 3,166,724
2019 Cash Flow projected at over $1,200,000 on sales of over $4,900,000

“We are the Starbucks of the Vape/Ecig Industry”.
8 of the best strategically-located retail locations throughout the Colorado Front Range. All locations are the extreme opposite of “head-shops”. They are all in A+ prime retail locations and all shops are impeccably-designed and outfitted for the best appearance and experience.

100% absentee-owned, the owner lives full time with his family 800 miles away, 12 key employees run everything, with 22 employees overall. “We don’t think anyone has ever offered 8 locations with consistent branding in what we feel are A+ surroundings that are just as classy, comfortable and brilliant as any Starbucks location”, states the owner.

Sales Price: $2,700,000 but the seller will carry $500,000.
The owner who is 100% absentee-owner has built something great and has taken it as far as he wants to. All 8 locations are highly successful, and the seller is clear that his incredibly profitable business model and great brand can be cloned into many other cities in the Rocky Mountain Region as well and many more locations throughout the Front Range of Colorado. The seller seeks the right person to take the company to the next level since he has all locations running very well. This transaction is perfect for a private equity group, a knowledgeable operator, or a larger company that knows how to take a solid business model and replicate it in other cities and leveraging the time and talents of others. The owner/seller is NOT the person to take on this next phase since he works full time managing a great deal of real estate he owns. In short, this is perfect for a large PEG that missed out on the Medical/Recreational Marijuana boom that started 3-4 years ago in the West.

Please email to request and receive entire electronic sales packet with 4 years of income statements, tax returns, balance sheets, and a detailed video of the entire operation and a full interview with the owner on all aspects of this offering.

We have many exclusive products and the lowest pricing with suppliers in the industry: We have the absolutely finest quality E-Cig/Vapor Products and exclusives supplier relationships throughout the Front Range. Our supplier relationships alone are worth a fortune to a new owner wanting to expand rapidly. The seller spent a great deal of time and energy identifying the finest Vapor units and vapor products that are being developed in California, many western states, and all over the world. Today, this company holds between 15 and 20 state-wide and regional exclusives for some of the highly-recognized products and brands in the entire E-CIG/Vapor industry. He has negotiated aggressively to obtain the lowest pricing available in the industry because of his bulk purchases ($120,000 last month alone), which is of course because of his buying power and retail sales volume.

The industry in Colorado and throughout the majority of United States is in the very beginning stages of development and growth (California is the only well-established state at this point for E-CIG/Vapors.). Of the few brick-and-mortar retail locations that exist today, they are comprised of small, independent, mom-and-pop shops that we compete with. Because most-all retail competitors that we compete with are single locations, they simply don't have the sales volume and the buying power that we have today with our 8 high-volume locations producing approximately $317,000/month in sales. Therefore, we have a substantial competitive edge in our wide array of product offerings, and we are also able to maintain the strongest statewide exclusives with fine vapor products with consistent suppliers. To summarize, our supplier exclusives and relatively low product costs are an enormous benefit to the new owner if they seek to expand to 10, 15, or even 20 locations over the next 1 to 2 years.

All 22 employees live by 2 mottos. PCC & BFB. The first stands for Professionalism, Customer Service & Consistency. The second stands for Building Future Business. We make sure that every sales transaction implements PCC & BFB thus helping not only maintain customer loyalty but it also helps us grow organically faster. There are a few things that can be done to increase revenue and double sales. Simply stated, we need more locations. At this point we have all the numbers crunched and systems in place so increasing sales and revenues is achieved by adding locations to existing infrastructure. Another option to increase sales/revenue that we may do in 2019 is buy out the smaller competition. Acquiring 2 or 3 locations with underdeveloped potential is the goal. With our superior profit margins, overall more efficient overhead, a larger variety of products & better customer service we can turn any vape shop with a good location into a very profitable location.

We feel we have the Biggest name in Vapor and Strongest Branding in West. To our knowledge, we are not aware of another company in the West (including California) that has as many as locations, with the wide array of products like we do. We sell it all: Eliquids, vapor units, starter kits, accessories, batteries, chargers, vapor tanks with every flavor and nicotine strength/level imaginable. We have a website with the most extensive choices with an-easy-to-follow shopping-cart-filling programs for on-line shoppers.

An Annuity for the Future: We are building an “annuity”; a steady stream of predictable income from a loyal customer base by doing a great job up front of taking a “consultative approach” to establishing a long-standing and loyal relationship with our customers. We already have over 50,000 documents customers who have purchased units and products from us in just the past 2 years. These loyal customers will provide a steady/predictable income stream to the company for many years to come. We have done a great job of taking the extra time of educating our customers on E-CIG/Vapor benefits vs. cigarettes and gaining their trust. All this effort helps them explore what works best to achieve whatever cigarette-quitting goals they have. To summarize, we are an excellent alternative to help smokers quit. No one that we know has the branding and professionalism that we offer in an otherwise mom-and-pop-type new industry.

As stated, all locations enjoy a solid stream of steady customers throughout the full day, 7 days/wk. In fact, immediately after we have opened each of our 8 locations, they were instantly profitable. This is because the current owner has done an aggressive job of establishing the lowest overhead and COGS with suppliers possible. Also, he has done a great job of negotiating the lowest lease rates with all landlords. This way, regardless of the initial foot traffic in the first 1-2 months of being open, we are assured to being far more profitable than we otherwise would be.

We are NOT part of the Vice/tobacco problem, we are the “solution”. We are NOT a "Vice" product: If you have a problem with buying a “VICE” company like booze of Marijuana, this is the “opposite” of a vice company. We are NOT part of the cigarette problem; we are part of the solution. Vaping is the fastest-growing ‘anti-vice, anti-smoking’ product in the world today says many of the business articles below. The DEMAND for any product that helps people quit smoking has, and always will be tremendous. There was approximately $80BB in cigarette sales worldwide in 2018.

Industry Regulations: Of course, one of the first things that come to mind when considering the purchase of one of the largest vape/ECIG companies in the West would be what about the regulatory environment, what about the FDA and the growing epidemic of Vape -pipe and oils usage? Quite honestly unless you’re in this industry you wouldn’t really know about the current regulations and proposed regulations that are likely to come over the next couple of years. The owner’s general statement that this industry and this business “has nothing to worry about”. Of course, this is a very bold statement, but this comprehensive sales packet provides enormous about information about the current regulatory apartment and where it’s going.

We will cover this in greater detail below, but simply put, the FDA in the regulators in general or putting their emphasis on the manufacturers of these juices and oils. It must be made clear here that this company is strictly a retailer of these products and performance no manufacturing or packaging whatsoever. The only regulations that this company and other retailers must comply is simply that they cannot sell to teenagers under the age of 18. This company has the reputation of being the poster child for running the cleanest operation and has never sold to anybody under 18 years old in their history. As you’ll see below the seller is emphatic that these 8 locations run the cleanest and tightest operation in the country. everything is documented in the sale is never taken place without a valid driver’s license and matching credit card, if used.

There ARE some retailers that will likely be impacted in the coming years such as gas stations, convenience stores, and mom-and-pop small retail outlets who make their own oils and juices. These retail shops will likely not survive the regulations and will be close down because they cannot prove their compliance not selling two underage kids. This is great news for us, we applaud the regulations because it simply means all these consumers will come to us.

An exact quote from FDA Commissioner, Scott Gottlieb on 9/12/18. “E-cigarettes may present an important opportunity for adult smokers to transition off combustible tobacco products and onto nicotine delivery products that may not have the same level of risks associated with them”. Mr. Gottlie is an ex-smoker and has gone on record many times to state that vaping is a way for “adult” to transition from smoking, a great alternative. BUT HE IS DEAD SET AGAINST “TEEN” VAPING USE.
Historically the Vape/E-Cig industry has been fragmented with individual “mom-and-pop” locations that look like pawn shops or classless smoke shops in quality. We serve the highest-end echelon of vape users and smokers who seek to quit. Simply put, “we have the largest chain (8 locations), finest image/branding, and products in the entire west”, claims the seller. Truthfully, 10-15 years ago the industry was still in its infancy and wasn't professionally established. During the last 15 years or so the industry has exploded at a faster rate than the medical and recreational marijuana Industry, which of course is here to stay in growing rapidly, see Wells Fargo industry projections.

Because the industry is so established and here to stay, there have been some substantial roll-ups of smaller companies like ours in other states throughout the country. For instance, Philip Morris/Altria paid approximately $150 million for 108 retail vape shops in the East. Likewise, Vapor Shark purchased approximately 120 vape shops in multiple states. The big tobacco companies and other big players have been getting into the market in the last few years by gobbling up multi-shop companies like ours and they wouldn’t be doing that if they felt the industry was in peril, or even in question. Cigarette sales are in decline so they are shifting to vape/ecigs See here:

https://www.forbes.com/sites/greatspeculations/2015/07/24/will-e-cigarettes-be-the-knight-in-shining-armor-for-u-s-tobacco-stocks/#746248996fe9te a vapor that is inhaled. In a sentence, we are NOT e product”; as a point in fact For Sale:
The cigarette industry is falling off rapidly. The E-Cig industry has exploded as an effected alternative to smoking and has helped millions of people GET OFF cigarettes permanently. In short, our vapor product and our “exclusive” vapor-related products are the best in the entire country, bar none, the seller insists. The growth in cash flow from $200,000 in 2013 to $1,100,000 in 2018 speaks for itself. It has been a straight line up in sales, GP, and cash flow.

Source, copy paste to browser https://www.grandviewresearch.com/industry-analysis/e-cigarette-vaping-market

Please email to request and receive entire electronic sales packet with 4 years of income statements, tax returns, balance sheets, and a detailed video of the entire operation and a full interview with the owner on all aspects of this offering.

Sincerely,

Paul Olsen
Business Sales | Valuations | Mergers and Acquisitions
We Sell Businesses Quickly and Quietly and for Top Dollar.
Main: 303-382-1900 Cell: 303-522-2034
999 18th Street, Suite 3000, 30th Flr. Denver, CO 80202
www.companybroker.com

Detailed Information

Location:
Denver, CO
Inventory:
Not included in asking price
Employees:
22
Furniture, Fixtures, & Equipment (FF&E):
Included in asking price
Financing:
Seller Carries $500,000
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Paul Olsen

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