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13-Year-Old Specialty Hand Tools Business | 96% YOY SDE Growth

United States
Manufacturing and Transformation
Company Data
Price
$14.6M
21%
Revenue
$15.6M
Top 10%
Profit
$3.3M
4X
Business Overview
About the Company
40% Repeat Revenue on Branded Site, Positive YOY Trends Launched in 2010, this business has paved its way to the top of its niche over the last 13 years as one of the leading omni-channel, inventory-based ecommerce providers of specialty hand tools that primarily serve the Woodworking and Woodturning markets. Incredible brand reputation is represented with 45% of direct traffic coming through the branded website. The branded website represents 43% of total revenue and has been a growing channel in recent years due to branding efforts, which adds stronger defensibility. In addition, ~40% of revenue to the branded website is from repeat customers. Amazon represents 53% of revenue across channels, and no one SKU currently represents more than 4% of revenue. With a proven history of solid earnings, this business has experienced 15% YoY revenue growth and 96% YoY net profit growth. Numerous additional growth opportunities alongside the ongoing built-in growth levers exist, including pursuing SEO to a well-aged and reputable domain (this hasn’t yet been implemented), capitalizing on an exclusive affiliate opportunity with one of the largest brands in the US (see package for details), adding new suppliers, launching new private-label products that are currently in the pipeline, expanding and scaling social media, scaling PPC spend, and optimizing email campaigns to 95,000 existing subscribers. According to Allied Market Research, “The global woodworking tools market size was valued at $8.95B in 2021 and is projected to reach $13.3B by 2031, growing at a compound annual growth rate of 3.9% from 2022 to 2031.” The current owners spend 40 hours per week each managing the business. The operations are straightforward with strong SOPs and a turnkey team. The owners are willing to provide full training and support to ensure continued success and are open to ongoing part-time consulting post-transition if needed. Key Benefits: Impressive Growth Trends: The company has seen 15% YoY TTM revenue growth and 96% YoY SDE growth. Premium, Defensible Brand: This brand offers a diverse yet cohesive product range in a passion- driven space which includes 2,700 SKUs, with ~50% of those being private label and no one SKU currently representing more than 4% of revenue across its branded website and Amazon. The brand is very well known in its niche, which is represented by 45% of traffic coming directly to the branded website. Growth Opportunities: Outside of the built-in growth that is currently being experienced, additional growth is possible through launching new products and suppliers, expanding social media campaigns, scaling existing PPC, adding SEO strategies, and implementing an exclusive affiliate program available to them. The brand is positioned well for continued scalability. Repeat Customers: The website has an outstanding ~40% repeat customer rate in the TTM. Reputable Brand/Mature Business: This 13-year-old e-commerce brand has over 50,000 positive reviews. Strong SOPs: Written SOPs are one of their core team values, and a comprehensive employee handbook has been in place for the past four years. Email List: They've captured an audience of 95,000 email subscribers, which has driven 12% of total TTM revenue.
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