SBRI - Southbridge Business Resources, INC.
SBRI - Southbridge Business Resources, INC.

Buying Club - Consumer Fulfillment Acquisition and Expansion

 

Southbridge is pleased to present an excellent investment opportunity that offers high returns starting in year one in a project with a proven management team acquiring a 31 year old company that features exciting immediate growth opportunity.

The company is a highly respected membership buying service. It offers members the opportunity to buy directly from manufacturer’s bypassing the normally marked up retail and even wholesale prices available. The company has 12 licensees / franchisees as well as company owned outlets. Details of this huge industry are covered within our enclosures.

The acquiring management team has an extensive success record in franchising and consumer fulfillment services. The team has a tremendous model for growth that includes enhancement of membership through an ongoing comprehensive membership marketing program, enlargement of the financing of the membership program through proven manageable methods, a complete e-commerce program, offering of a greater range and variety of products or services, and a rapid franchising improvement and growth program.

The company projects 3-fold growth in year one of acquisition reflecting in a net operating profit of 30+ per cent. This growth is validated by a seasoned management group that can expand four basic revenue disciplines while creating brand name and national market exposure, thus creating an extremely lucrative exit strategy at year end of year three (projected 500% ROI). The 4 key revenue disciplines are:

  • Controlled franchise growth
  • Rapid membership growth
  • Financing of membership
  • Highly Enhanced product and service offerings in convenient forums such as e-commerce

 

Unique Feature:  

Membership sales – current revenues and residual income business model.

 

Market: 

Unique wholesale shopping for Consumers through localized service centers and E-Commerce.

 

Current Size of Market: 

Over $500 million.

 

Potential Market:

1.67 billion or 2% of existing $70+ billion of shopping club/warehouse club.

 

Unique Aspects:

Immediate franchise growth opportunity for over 500 units, only 150 exist.

 

Key Differentiators:

No large retail space or inventory, unit costs below $150,000.

 

Initial Cash Flow:

$750,000 annual.

 

Discretionary Cash Flow:

25% of annual revenue.

 

Security/Collateralization:

Accounts and notes receivable, inventory, equipment and franchise residual income.

 

Net Asset Value:

$3,300,000 to include value of franchises

 

Management:

Solid team in place, key growth management identified.

 

SALE PRICE $3,300,000 - Stock Purchase

 

 

 

 

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