It’s amazing what can be achieved with a little hustle and a lot of smart planning right? I recently came across a real-life case study that blew my mind – a humble Shopify store selling spiritual jewelry and personal care products that reached a whopping $12 million exit!
Now you might think a $12 million exit is something reserved for flashy tech startups or high-ticket Amazon FBA businesses backed by big investors.
But this story is about a bootstrapped eCommerce store built from the ground up by two entrepreneurs.
And the best part? They got to keep all the profits! No investors taking a huge chunk of the pie.
🔥 Want to see how a Shopify store selling spiritual jewelry and personal care products made a $12 million exit? 🤯 It’s a wild ride! Check out the case study now!
A Solid Foundation for Success:
🔥 Want to see how a Shopify store selling spiritual jewelry and personal care products made a $12 million exit? 🤯 It’s a wild ride! Check out the case study now!
This business launched in March 2018 wasn’t just selling individual products – they were building a community through subscription boxes.
This is where their genius truly shone! Subscriptions are a must in eCommerce creating that crucial stable revenue stream.
It’s like having a monthly payday you can rely on.
Think about it: Most online businesses are constantly chasing sales.
They order inventory and hope for the best.
But with subscriptions customers are essentially pre-paying for products providing a steady stream of cash flow.
This makes inventory management much smoother.
No more guessing how much to stock.
The Power of a Robust Supply Chain:
The business owners didn’t just rely on one supplier.
They wisely diversified their supply chain working with multiple suppliers in China India and the US.
This strategy protected them from supply chain disruptions.
Remember the craziness during the pandemic the Suez Canal blockage and the recent Red Sea unrest? Having multiple suppliers is like having an insurance policy against chaos.
A Recipe for Explosive Growth:
With a strong foundation and a predictable revenue stream the Shopify store was able to achieve phenomenal growth – a remarkable 70% yearly revenue increase! They were averaging a cool $277000 in monthly profits.
Talk about a dream come true!
They were clearly ready for an exit and that’s where Empire Flippers stepped in.
We’re a marketplace for online businesses connecting buyers and sellers.
We have a reputation for attracting high-net-worth individuals and firms which means we have a lot of liquidity – over $2 billion worth!
Finding the Right Buyer:
Selling a business like this one isn’t a walk in the park.
It’s not just about finding a buyer who has the cash.
You need someone who understands the potential who can take the business to the next level.
That’s why we were able to attract 33 interested buyers including some big-league players like aggregators.
These are companies that buy multiple businesses in the same niche and combine them to create a powerhouse.
The final buyer was a multi-national public company operating in the fashion jewelry and lifestyle accessories niches.
They saw this Shopify store as a perfect brand aggregation strategy.
They wanted to tap into its massive audience – 230000 email subscribers and over 500000 social media followers.
The Negotiation Dance:
The buyer came in with an offer of $11.9 million which was below the asking price of $13.6 million.
But they were willing to offer 50% upfront in cash and the rest in seller promissory notes which are like IOUs.
The sellers however weren’t swayed.
They had a clear vision and knew their business’s worth.
They countered with a higher offer and insisted on a larger upfront payment.
After a few rounds of negotiation the two parties finally agreed on a price of $12.9 million with 75% paid upfront and the rest spread out over time.
The Due Diligence Process:
Once a deal is agreed upon it’s not a done deal yet! There’s a due diligence period where the buyer examines the business in detail like a thorough medical checkup for a company.
This period can be lengthy – a few weeks to a few months depending on the business’s complexity.
In this case the due diligence took six months because the buyer and seller’s lawyers were meticulous in their review.
They even switched the deal from an asset sale to an entity sale to minimize the buyer’s tax liability.
The Exit:
Finally after all the negotiations and due diligence the deal closed.
The buyer acquired a thriving business with a loyal customer base and a strong brand.
The sellers walked away with $12 million ready to embark on their next adventure.
Timing is Everything:
When it comes to selling your business timing is everything.
Exit too soon and you might miss out on potential profits.
Exit too late and the market might turn against you.
These sellers hit the sweet spot – the business was profitable had grown significantly and had a lot of potential left.
It was a perfect time to cash in.
Finding Your Sweet Spot:
If you’re considering selling your business the first step is to know its true value.
Use our free valuation tool to get an idea.
You might be surprised at what your business is worth.
Remember a successful exit is a life-changing event not just for the sellers but for the buyers too.
It’s an opportunity to build something even bigger something that can impact the market in a meaningful way.
So if you’re building a business remember this: Start strong build smart and don’t be afraid to dream big.
You never know where your hustle might take you.
🔥 Want to see how a Shopify store selling spiritual jewelry and personal care products made a $12 million exit? 🤯 It’s a wild ride! Check out the case study now!