Business Start Date: December 2012
Business Valuation: €3,650,000 EUR
Percentage Being Sold: 100%
Sales (TTM): €2,824,314
Net Profit (SDE): €54,968
Business Multiple (Revenue): 1.29x
Customers (Lifetime): 100,000+
Traffic (TTM): 140,000+

____________________________________________

Summary

Founded in December 2012, this company has established itself as a premier provider of international package and freight forwarding solutions. With a current valuation of €3,650,000 EUR, the company has achieved impressive sales totaling €2,824,314 over the trailing twelve months (TTM), yielding a net profit (SDE) of €54,968. This translates to a revenue multiple of 1.29x, indicating a sound investment opportunity.

This company's success is underpinned by its extensive customer base, which exceeds 100,000 lifetime B2C + B2B customers. Moreover, the company has attracted substantial traffic, with over 140,000 visits recorded over the TTM period. These figures attest to this company's robust market presence and its capacity to generate sustained revenue streams.

The Opportunity

The landscape of international commerce presents this company with significant growth opportunities. Leveraging the rich diversity of products available in the German and European markets, the company taps into the global demand for high-quality goods at competitive prices. With a focus on serving over 100,000 customers, this company caters to diverse needs ranging from electronics and fashion to niche collectibles such as European furniture and antiques.

Furthermore, this company's strategic positioning facilitates seamless collaboration between German online sellers and international customers, fostering mutually beneficial relationships. Approximately 50% of the company's customer base engages in recurring transactions, underscoring the trust and brand loyalty cultivated over the years. This recurring revenue stream not only bolsters financial performance but also presents lucrative opportunities for upselling and brand expansion.

Key Highlights

• Over 100,000 loyal customers and annual revenues approaching €3 million demonstrate this company's robust market position and sustained growth trajectory.

• Long-term carrier contracts spanning 15 years afford this company access to preferential shipping rates, providing a competitive edge in the marketplace.

• Proprietary software solutions empower this company to automate critical processes, including customs clearance and issue resolution, enhancing operational efficiency and customer satisfaction.

• The company's unique value proposition lies in its ability to mitigate the complexities of international shipping for both merchants and end-customers, fostering trust and reliability.

Niche

This company's success stems from its adept handling of various pain points associated with international shipments. By offering comprehensive solutions that address import/export regulations, customs clearance, and landed costs, the company alleviates the burdens typically borne by merchants and end-customers. Moreover, this company's concierge service further enhances customer convenience by facilitating hassle-free procurement and delivery of goods, including VAT savings on eligible purchases.

The business gets its revenue because German online sellers avoid international shipment because:
- lack of import-export knowledge
- lack of customs processes (documents creation, import clearance issues)
- unforeseeable costs when importing in recipients country (landed costs)
- international returns (as these cause costs and need to be re-imported)
- they want to avoid english customer communication

This company takes on these risks and solves it in an automated fashion. They evaluate and guide and actually even completely outsource these for merchants.

On the customer-side, they do all the above plus the so-called Concierge-Service: end-customers can instruct us to purchase and/or pick up on their behalf. With that end-customers can procure anything in Germany without doing anything; and they can even save 19% German VAT - that means for them items are 19% cheaper than in the market! 

Customer Base

This company's diverse customer base comprises approximately 40% EU and 60% non-EU clientele, with the US emerging as the largest market. Through strategic partnerships with prominent German merchants, the company extends its reach and strengthens its position as the preferred international shipping partner. Notably, this company's collaborative efforts with top-tier German retailers underscore its reputation as a trusted facilitator of cross-border transactions.

Key stats:

100k international customers:  40% EU / 60% Non-EU

Largest market is US (yearly revenue shipping 500k, concierge 240k)
Second largest market is UK (yearly revenue shipping 250k, concierge 90k)
Third largest market is JAP (yearly revenue shipping 230k, concierge 120k)
AUS / IL / SAUDI ARABIA (each yearly revenue shipping 150k, concierge 60-90k)
30% B2B and 70% B2C

Traffic Analysis

This company's online presence is robust, with a substantial portion of traffic originating from organic search and direct referrals. The company's website attracts visitors from diverse linguistic backgrounds and demographic segments, underscoring its global appeal. Notably, English emerges as the predominant language, reflecting the company's focus on catering to an international audience.

Key stats:

1. 79k of the 140k visitors from the last 9 months are from organic search while 46k of them are direct. The tiny leftover are a mix from referral and paid search.

2. 61.7% of visitors are male while 38.3% are female

3. Visitors come from 7+ languages but English is the large majority of visitors. 

4. Age group 25-35 is the high segment of visitors followed by 18-24, and 35-65+

5. In the last 9 months, there has been over 852,000 views on the site showing a very active user base.

Revenue Breakdown

This company's revenue streams encompass shipping services, concierge assistance, and subscription models. The company's primary revenue driver is shipping services, which account for 60% of total revenue. Additionally, the concierge service, whereby customers delegate purchasing tasks to this company, contributes significantly to the company's bottom line, representing 34% of total revenue.

Revenue Sources

Major Revenue is Shipping: 60%
Shipping Services: 5%
Concierge Revenue: 34%
A small amount comes from account subscriptions: 1%

Shipping: the business purchases shipping rates from carriers and sell it with 80-150% margin to end-customers. The larger the package and the wider the shipping distance, the larger the shipping rate and thus the margin.
(30% in Europe and 70% from Non-EU countries)
(20% Freight and 80% Packages)

Especially the freight and pick up services are a USP, as nobody is providing that in Germany.

Shipping services: additional packaging, photos etc.

Concierge Service: Customers instruct us to purchase on their behalf, the business purchases for them online and in stores. They also pick up items.

Financial Performance

Referencing the enclosed financial statements, this company has demonstrated consistent revenue growth over the past three years, with sales increasing from €2,172,926 in 2021 to €2,856,594 in 2023. Despite fluctuations in profitability, the company has maintained a positive trajectory, indicative of its resilience and adaptability in navigating market dynamics.

Sales (EUR)

2021: 2,172,926 € 

2022: 2,383,621 € 

2023: 2,856,594 € 

Profit/SDE (EUR)

2021: 187,490 € 

2022: 91,272 € 

2023: 64,999 € 

Operational Excellence

This company's operational framework is characterized by a blend of automation and expertise, ensuring seamless package forwarding, freight logistics, and concierge services. By leveraging proprietary software solutions, the company streamlines workflow processes, enhances inventory management, and optimizes customer interactions. Additionally, the company's physical infrastructure, including warehouse facilities and packaging devices, underscores its commitment to operational efficiency and service excellence.

You can refer to the financials for a full breakdown of costs but here is estimate of current expenses:

Material & Carrier Costs - 34%

Concierge - 35%

Facility - 3.5%

Marketing (Travel & Google Budget) - 1.5%

Labour - 20%

Other Costs - 5%

Incidental monetary transaction costs - 3%

Team Dynamics

With a dedicated team comprising stakeholders, operational managers, administrative staff, warehouse personnel, and technical experts, this company maintains a robust organizational structure. Notably, the company's workforce possesses a diverse skill set, ranging from import/export knowledge to software development and customer service proficiency. This multi-disciplinary approach enables this company to deliver superior service quality and drive innovation across its operations.

FTE:

• 3 stakeholders: 40 / 40 / 30 - out of that 2 are acting operational as managing directors and one is not operational active.

• 2 accounting ladies (working since 2020)

• 1 communication lady handling mails and chat (working since 2019)

• 7 people in warehouse handling incoming, outgoing, packing/consolidation

• 1 head of warehouse (10 years experience, working since 2019)

• 1 lawyer / administration 

• 1 IT developer

Sales and Marketing Strategies

This company employs a multi-faceted approach to sales and marketing, encompassing search engine optimization (SEO), social media marketing, targeted advertising, and email campaigns. By leveraging these channels effectively, the company maximizes brand visibility, engages with its target audience, and cultivates customer loyalty. Notably, strategic partnerships with German merchants and carriers further amplify this company's reach and market penetration.

Expansion Opportunities

The company's growth prospects are underscored by opportunities to optimize operational efficiency, explore new market segments, and implement strategic pricing initiatives. By refining existing processes, reducing overhead costs, and diversifying service offerings, this company can unlock untapped revenue streams and expand its market presence. Moreover, strategic collaborations with industry partners and exploration of emerging markets further augment the company's growth trajectory.

Barriers to Entry

This company's competitive advantage lies in its extensive industry experience, proprietary software solutions, and established partnerships with carriers and merchants. These factors pose significant barriers to entry for potential competitors, as replicating this company's business model requires substantial investment in technology, logistics infrastructure, and market penetration efforts. Additionally, the company's proven track record and loyal customer base enhance its defensibility against market threats.

Assets Included

The sale includes all relevant assets necessary for the seamless operation of this company, encompassing intellectual property, contracts, physical infrastructure, and operational resources. This comprehensive package ensures continuity of service and facilitates a smooth transition of ownership.

1. Domains and all IP brand

2. Liferay based software - own development - depicting:
   Accounting and invoicing
   Warehouse processes incl. inventory and storage management system
   User account dashboard
   APIs to carriers
   Reporting tool

3. All Customer information except payment data (which is handled by payment service provider Computop)

4. Paypal Account

5. Computop Account

6. Jira & Atlassian Account (knowledge database)

7. All contracts with carriers such as DHL, FEDEX, UPS etc.

8. Social Media and Marketing Accounts

9. Employee contracts

10. Warehouse inventory such as high racks, folk lift, lift trucks, packing devices, packing tables etc.

11. Any physical assets in warehouse

12. All distribution contracts

13. German Bank accounts

14. Misc Accounts

15. All other relevant business assets to run the company successfully

____________________________________________

About the Agent 

FIH.com is a leading M&A advisory firm specializing in the sale of successful digital enterprises worldwide. With a focus on facilitating transactions ranging from $1 million to $100 million in revenue, FIH.com boasts a track record of excellence in guiding entrepreneurs and investors through the acquisition and divestiture process. Contact us today for a complimentary consultation and discover how we can help you unlock your business's full potential.