Survivalist Essentials Box of the Month Club – E-Commerce Subscription Business With Persistent Recurring Revenues
Predictable, Consistent Revenues with 36% YOY Growth in Subscription Revenue
Specifications
Price: $1,350,000 + Inventory |
Revenue: $3,046,500 (Forecast ‘22) |
Cash Flow: $328,600 (Forecast ‘22) |
Location: Virtual/Online |
Service Area: U.S. Focused |
Profit Margin: 36%+ |
Employees: None. Outsourced. |
Reason for Sale: Sellers Focused on Corollary Ventures |
Goodwill: High Growth Industry; Strong Leading Metrics |
Year Established: | 2019 |
Offering: | Monthly curated subscription box to consumers seeking survivalist essentials |
FF&E: | Minimal |
Inventory: | Varies between $50K – $100K, depending on season and time of the month leading to customer shipments |
Clients: | 100% e-commerce, consumer focus |
Facility & Lease: | No office space or warehouse space required; a purely virtual business operation |
Staff & Personnel: |
0. 100% of service operations and marketing are presently outsourced and can optionally remain intact with existing resources |
Geographic Markets: | USA only (can be expanded) |
In an age of pandemics and increasing risk of world war, this savvy business is positioned at the intersection of two growing trends: rapidly increasing consumer spending on survival essentials and e-commerce-based subscription services (“Box of the Month Clubs”). This company is growing at a rate of 36% year-over-year. It’s important to note that these revenues are subscription-based, predictable, and recurring. The model for this company was proven successful even before the onset of COVID, and other serious geopolitical issues occurring worldwide. These events playing out worldwide appear to fuel increasing consumer demand in the survival market category, further driving growth in subscription revenues and increasing profit margins.
If you’re looking for a business that can benefit from the unknowns playing out on the world stage, while building a predictable model for recurring revenue, this business is at the crossroads of multiple expanding trends.
Box of the Month subscription services are a relatively new phenomenon. Consumers subscribe, and perpetually receive a monthly box with items that meet with their interest; in this case, survival essentials. Customers are charged a monthly, perpetual fee for ongoing membership. Creating a model in this format – with metrics that have deep retention and minimize churn – are the envy of subscription-seeking online retailers. This company has proven the model and continues to build momentum at the heart of a growing market segment.
The sellers are marketing experts in the rapid growth phenomenon of “Box of the Month” subscription services. In addition to the rapid success of the acquisition opportunity at hand, the Sellers also operate a corollary business that provides deep marketing and operational services for a wide range of e-commerce subscription services that span multiple industries, and they have helped numerous box-of-the-month businesses succeed.
The Seller can optionally remain involved at both a strategic and tactical level – for a semi-absentee-seeking Buyer looking for a hands-off role in day-to-day operations. Alternatively, a strategic Buyer seeking to expand their own recurring e-commerce revenues can take the operational and tactical role internally, utilizing in-house resources instead.
If you’re looking for an e-commerce acquisition that capitalizes on the uncertainties of a changing world, a business that has predicable revenues and repeat customers by design – and that can be run virtually or rolled into an existing corporate e-commerce operation – take a closer look at this one-of-a-kind acquisition opportunity.
Value Proposition
- 36%+ YOY growth in subscription-based revenues
- Virtual business operations from anywhere
- Leverage consumer interest in survival essentials
- Ride the wave of subscription-based e-commerce
- Turnkey operations that Buyer can optionally keep intact
- 2022 forecasts continued growth in subscription revenues
- Virtual business – no office space or warehouse required
- Optionally leverage Sellers expertise for the long haul
Revenue Breakdown
Financial Highlights
- Listing Price: $1,350,000 + Inventory
- 2022 Forecast Cashflow (EBITDA): $328,622
- 2022 Forecast Revenues: $3,046,500
- Annual growth in Subscription-based revenues: 36%
- Average Customer Acquisition Cost (CAC): $197
- Long Term Value (LTV) by Service: $535 / $653 / $1,074 / $1,448
- Inventory (Mar 2021): varies between roughly $50K – $100K depending on seasonality and timing
- Cash flow margin growing as subscription revenues continue to increase