Hot Listing
5-Yr-Old Dual-Brand Premium DTC Supplement Business | $1.05M MRR
Business Description
Established in 2020, this company operates two premium supplement brands targeting women seeking a natural alternative to prescription stimulants and the 40+ demographic seeking heart health. With exceptional 71% TTM growth and 60% gross margins, both brands leverage unified marketing, fulfillment, and customer operations for efficient growth. The company is implementing sustainable packaging, representing a retroactive reduction in shipping costs of ~$700K annually (not in the P&L), providing immediate built-in equity. They maintain premium positioning with elevated packaging, sub-20-minute response times, and clinically validated formulations manufactured in FDA-registered US facilities.
The business delivers exceptional financial performance via predictable subscription revenue, with 55%–60% of sales generating $1.05M combined MRR. Strong customer retention drives an impressive lifetime value (LTV) of $215. The company achieves remarkable cash-flow dynamics through net 120-day supplier terms while collecting payments within 1-3 weeks, resulting in a strong negative cash conversion cycle that funds growth without needing external capital.
Competitive differentiation centers on formulations designed to match clinical-study dosage levels, addressing industry-wide underdosed ingredients. The business demonstrates exceptional scalability and efficiency. Marketing spend has increased from $250K to $650K/mth while maintaining strong margins, reaching $3.4M SDE, and achieving and a 12% TTM reduction in ad spend as a percentage of revenue.
The acquisition presents immediate expansion opportunities beyond proven digital channels. Major retail chains, including Walgreens, CVS, and Whole Foods, offer significant growth potential. The proven infrastructure creates a ready platform for additional brands, while international markets remain untapped. The founder is committed to a smooth transition and prefers retaining a meaningful minority stake to support ongoing growth.
Key Benefits:
Predictable Revenue: With ~60% of total revenue coming from subscriptions, the company generates $1.05M in MRR. Combined with a $215 customer LTV and 50% MRR growth in just six months, the business demonstrates stability and strong momentum.
Superior Cash-Flow Dynamics: Suppliers are paid 10% down with 120-day terms while collecting from customers within days, creating a powerful negative cash conversion cycle and enabling self-funded growth to $3M+ in earnings with no outside capital.
Dual-Brand Operational Synergies: A proven dual-brand strategy creates operational synergies and economies of scale across marketing, fulfillment, and customer service while providing diversification across target demographics.
Superior Unit Economics: YoY SDE growth of 158% on 71% revenue growth, combined with ~60% gross margins and improvement in marketing efficiency (down 12% as a percentage of revenue), has proven their model where scale amplifies profitability.
FDA-Registered US Manufacturing: Quality-assured production in FDA-registered facilities with established US-based supplier relationships and backup manufacturing capacity ensures consistent product availability and regulatory compliance.
Desire for Retained Equity: Well-documented operational systems are updated annually. The founders are committed to a smooth transition, evidenced by their willingness to provide ample training and their desire to retain meaningful minority equity.
The business delivers exceptional financial performance via predictable subscription revenue, with 55%–60% of sales generating $1.05M combined MRR. Strong customer retention drives an impressive lifetime value (LTV) of $215. The company achieves remarkable cash-flow dynamics through net 120-day supplier terms while collecting payments within 1-3 weeks, resulting in a strong negative cash conversion cycle that funds growth without needing external capital.
Competitive differentiation centers on formulations designed to match clinical-study dosage levels, addressing industry-wide underdosed ingredients. The business demonstrates exceptional scalability and efficiency. Marketing spend has increased from $250K to $650K/mth while maintaining strong margins, reaching $3.4M SDE, and achieving and a 12% TTM reduction in ad spend as a percentage of revenue.
The acquisition presents immediate expansion opportunities beyond proven digital channels. Major retail chains, including Walgreens, CVS, and Whole Foods, offer significant growth potential. The proven infrastructure creates a ready platform for additional brands, while international markets remain untapped. The founder is committed to a smooth transition and prefers retaining a meaningful minority stake to support ongoing growth.
Key Benefits:
Predictable Revenue: With ~60% of total revenue coming from subscriptions, the company generates $1.05M in MRR. Combined with a $215 customer LTV and 50% MRR growth in just six months, the business demonstrates stability and strong momentum.
Superior Cash-Flow Dynamics: Suppliers are paid 10% down with 120-day terms while collecting from customers within days, creating a powerful negative cash conversion cycle and enabling self-funded growth to $3M+ in earnings with no outside capital.
Dual-Brand Operational Synergies: A proven dual-brand strategy creates operational synergies and economies of scale across marketing, fulfillment, and customer service while providing diversification across target demographics.
Superior Unit Economics: YoY SDE growth of 158% on 71% revenue growth, combined with ~60% gross margins and improvement in marketing efficiency (down 12% as a percentage of revenue), has proven their model where scale amplifies profitability.
FDA-Registered US Manufacturing: Quality-assured production in FDA-registered facilities with established US-based supplier relationships and backup manufacturing capacity ensures consistent product availability and regulatory compliance.
Desire for Retained Equity: Well-documented operational systems are updated annually. The founders are committed to a smooth transition, evidenced by their willingness to provide ample training and their desire to retain meaningful minority equity.
About the Business
- Years in Operation
- 5
- Employees
- 6
- Currently Relocatable
- Yes
- Currently Home Based
- Yes
- Market Outlook / Competition
- Proven Marketing Scalability: A sophisticated marketing infrastructure has scaled steadily from $250K to $650K in monthly ad spend while CACs (customer acquisition costs) have decreased.
- Opportunities for Growth
- Multiple Untapped Growth Channels: The infrastructure provides a legitimate runway for implementing growth strategies like entering major retail (e.g., Walgreens and Whole Foods), wholesale distribution, international markets, and introducing new brands.
About the Sale
- Seller Motivation
- The owner feels the next steps for growth are beyond their capacity.
- Transition Support
- Comprehensive Training and Transition:Well-documented operational systems are updated annually. The founders are committed to a smooth knowledge transfer and business continuity as evidenced by their willingness to provide ample training and transition and their desire to retain meaningful minority equity.
Listing Info
- ID
- 2396532
- Listing Views
- 1250
Listing ID: 2396532 The information on this listing has been provided by either the seller or a business broker representing the seller. BizQuest has no interest or stake in the sale of this business and has not verified any of the information and assumes no responsibility for its accuracy, veracity, or completeness. See our full Terms of Use. Learn how to avoid scams.
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