They focus mainly on Distribution and Logistics to other smaller
wholesalers which make up 59% of their revenue, while 38% is sold
Business to Business to multi location owners; less than 3% is sold
direct to the consumer and this is intentional for research and
development purposes. This B2B business has two primary client
types: smaller wholesalers and direct to shop owners. Services
include wholesale, coordinating manufacturing, packaged
development with fulfillment, and arranging logistics through 3rd party
freight. The current owner recently reinvested significant amounts of
time and money into expanding operations, including moving to a
distribution center twice the size to handle the growth. They operate
out of a 12,000 sq. ft. distribution facility in Southern California. In
2023 they added another distribution center in Florida. This team
includes a CFO, General Manager, VP of Sales, Retail Lead, 2
Manufacturing Leads, Warehouse Lead, 4 Warehouse Associates, 5
In House Sales Reps, 24 Packagers, and 19 Outside Sales Reps.
They do not have any drivers, all are outsourced. The goal for selling
is to expand with a Strategic Buyer or Equity Group who can bring
strong business acumen. The owner will remain on board for 4-5
years and is willing to do a 20% carry or equity roll combo as a sign of
a vested interest in the business’s success.
This business is priced at $37,000,000, producing a strong profit
margin! Another growth area is in manufacturing, bringing it in house
to boost productivity. Currently there are 36 States who have
recognized these Low-Dose consumables as a legal product and
there are projected to be another 7 states that will follow suit in the
next 6-9 months. The business does not sell any traditional cannabis
products but rather regulated hemp which allows them to legally sell
across state lines.
Ad#:2409252
