Issue link: http://deals.uberflip.com/i/1433150
The Company is engaged in the wholesale distribution of soft drinks, automotive oils, lubricants, antifreeze, additives, functional fluids, and other general merchandise to gas stations, wholesale distributors, repair shops, and convenience stores. In 2020, revenue was derived from beverages (62% of sales), automotive fluids/oils/antifreeze (20%), deicers/windshield water solvent (9%), general merchandise (5%), and miscellaneous products (4%). The Company's geographic market includes Illinois, Wisconsin, and Indiana. Its ongoing marketing strategy includes weekly email marketing, biannual catalogs, postcard mailings, and social media. The Company is also technology-focused with an Online Ordering System. Company Strengths • Superior Name and Reputation: The Company has a long- standing reputation as a leading convenience store distributor in the area. • Loyal and Diversified Customer Base: The Company currently has around 900 active accounts, a 90% repeat business rate, and customer concentration of no more than 7% with any one account. • Strong Supplier Relationships: The Company has long- term relationships with a diversified vendor base. These relationships enable consistent sourcing capabilities. • Skilled and Tenured Staff: The Company has skilled and tenured personnel who can run the day-to-day business with minimal owner presence. • Excellent Growth: The Company experienced growth in EBITDA at a CAGR of 50.4% between 2018 and 2020. • Management Continuity: Owner is willing to stay with the Company during an extended transition period in order to ensure a seamless transfer of ownership. Business Expansion Opportunities • Underlying Industry Strengths: Convenience stores have a recurring and recession-resistant business. • Market Expansion: The Company could leverage its current strengths and vendor relationships to expand into other high-margin market segments such as snacks, cigarettes, tobacco, and liquor. • Online Expansion: As the Company is an authorized dealer for many name brand products, it can easily expand into online market share with minimal investment. • Minimal Capital Investment: The Company's operations are not asset-intensive, and capital expenditures of only $10,000 per year are anticipated in the pro forma period. Prasad 'Pat' Karcherla, Senior M&A Advisor Deal # 64562 Tel: (630) 708-2408 Fax: (972) 232-1132 Email: pkarcherla@generational.com | www.Generational.com I www.DealForce.com For more information, please sign the Confidentiality Agreement DISCLAIMER: All information contained in this document has been provided by the subject company to Generational Equity and while believed to be correct has not been verified. Accordingly, Generational Equity makes no representations or warranties as to accuracy and truthfulness of such information. The recipient hereof acknowledges that Generational Equity shall not be liable for any loss or injury suffered by said recipient in any way connected to the delivery by Generational Equity of this document. At all times Generational Equity and its affiliate network members is an agent for the seller and not for the buyer. Generational Equity's fees are paid by the seller. Beverages & Automotive Lubricants Distributor Midwest/Great Lakes Region, US 2021 Est. Revenue $ 5.2MM | 2021 Est. EBITDA $280K+ Highlighted Investment Considerations The Company was founded in 2011, is registered as an S-Corporation, is currently staffed by 1 part-time and 11 full-time employees, and operates from a 9,250-square foot warehouse facility. It is committed to ensuring the quality of its products and service remains at the highest level of satisfaction during each stage of the business, including the arrival of materials from suppliers, re-packaging and storage at the facility, and customer delivery. This Offering is Pre-Qualified for SBA Financing. Click here to learn more.