Acquisition Opportunity: Wholesaler and online retailer of Ladies Fashion Accessories

Acquisition Opportunity: Wholesaler and online retailer of Ladies Fashion Accessories

XXX is a Leading online Fashion Brand in Malaysia, known for its trendy products, quality, rapid delivery and aftersales service.

INTRODUCTION
The key aspects of the business under offer are:-

OFFERS INVITED
● Latest comprehensive Designer Fashion range of over 1,000 Ladies accessories
● One Stop Fashion Shop with 4 Star Quality Products at a 2 Star Price
● Manufacturing is primarily outsourced from Mainland China up to EU Standards and Controls
● High Gross Profit Margins on the Sale of Goods
● Contracted Merchant Service Supplier to the top Malaysian Fashion Platforms
● Established XXX Branded Product in Malaysia
● Recognised and Awarded for its Professional Rapid Delivery Services and Availability of Product
● Flexible Pricing and Discount Structure that offers extremely competitive prices
● Strong Loyal Following of regular customer based accounts across Malaysia
● Member of the Malaysian Franchise Association (MMFA)

OPPORTUNITIES
Whereas the foreign Directors of the Company have been unable to secure finance for the ongoing development and expansion of the business have unanimously agreed to sell their shares upon agreed terms and conditions and have duly appointed the Company Chairman, Anthony Samuel via a board resolution (copy attached) to negotiate and seek a prospective buyers, directly or indirectly through an appointed Agent.

The acquisition therefore offers the prospective Buyer a unique opportunity that has:-
● Massive Potential to quadruple sales by expansion of its product range
● Scope to further Expand its Platform Base within Malaysia and others Asian Countries
● Capability to Launch its E-Franchise Program and Franchise Network throughout Malaysia
● And represents an Ideal Bolt-On opportunity for a larger online retailer seeking to expand its range
● Benefit from the Goodwill and Reputation XXX have established in the Malaysian market

POTENTIAL PURCHASERS

XXX Purchase would suit Companies in the following Arena of Business:-
● Wholesalers/Retailers of Ladies Fashion products and or Accessories
● Online Merchants in a similar or related line
● Entrepreneurs looking to enter the Malaysian E Commerce Market
● Parties looking to Develop and Expand their Business through Acquisition

OUTLINE PART (1)

More than 86% of the Malaysian Population has quality access to the Internet Broadband Services that are currently available. Over 19 million shoppers bought online during 2014 and projections indicate by the end of 2015 there will be nearly 23 Million Shoppers.
The average internet user spends nearly 6.5 hours per day surfing the net. The growth and sales of online shopping has been exponential and Malaysians like the convenience of shopping online.
Most Malaysians feel confident in buying online through protected and approved payment methods. There is still a strong following of COD (approximately 60% of all sales) due primarily to cultural aspects and mind-set.

Nonetheless most buyers believe that the internet offers the best and most attractive deals, with the added bonuses associated by special promotions, the coupon trend and seasonal discounts. Quality does not seem to be an issue as most Platforms/Cyber Malls offer beneficial goods return policies and Merchant Warrantees.

E Shopping has had a major impact on the weekday trade in the Malaysian Shopping Malls, where apart from the F&B outlets the Boutiques and Retail Shops see very little business. It is only on Fridays and at the weekends that the Shopping Malls become busy, as it is regarded as a social day out. In my opinion the serious buying is made at home through the internet.

The point is that this sector of business is a fast growing and developing market that can produce massive income from a relative low investment. XXX have developed an impressive following of monthly buyers that visit the XXX properties on a regular basis. According to Lazada Statistics the XXX Shop has over 600,000 hits per month.

OUTLINE PART (2)

XXX began its online sales business in Malaysia from August 2013, whereby all initial efforts for the first 2 to 3 months were spent on setting up the product listings, images and infrastructure. Proper sales were recorded in November and December from the 2 key accounts of Zalora and Lazada.
The Company does not have any loans or bank borrowings and comes under offer free of any liability.
This is a unique opportunity to acquire a Venture Business with enormous growth and profit potential at a very affordable price.

XXX are willing to negotiate on price and payment terms depending on the value and quality of finance under offer.

XXX will provide the following document against the signing of an NDA; the Balance Sheet and Audited Accounts for 2013, the Management Accounts for 2014 and the Projected Budgets for 2015.

DESCRIPTION OF THE BUSINESS
Wholesaler and Merchant to the Essential Key fashion Shopping Platforms in Malaysia. XXX supplies a comprehensive range of “Ladies Fashion Accessories” from its Central Distribution and Collection Outlet in Botanic Business Gateway.

The Key Platforms are listed below and include: xxxx

In the case of Zalora we are currently operating their “Main Site,” “The Outlet” and the “Market Place.” Apart from this we have sold product directly at GSA Prices for them to top up their internal trading business.

We operate from the Bandar Botanic Business Gateway where we have constructed a Show Room (2,500 sq ft), a Distribution Centre (1,250 sq ft), a first floor Office (2,250 sq ft), an Apartment (2,150 sq ft) and second floor storage with full racking (3,500 sq ft).

The premises are sufficient to support the business growth and development for the next 5 years and are ideally situated for direct access to the motorway and routes to other parts of the Country. All the contracted Express Delivery Companies seem to have an address location nearby and we provide a fast and efficient delivery service. (Images of the premises are attached)

At present the XXX SKU’s of product are around 360 and expanding by about an additional 60 SKU’s per month. By the end of 2015 XXX will have over 750 SKU’s of product online.

Although this is at present a small business requiring a small investment, it has the potential to develop into a multimillion operation producing high levels of returns and positive cash-flow. It is only the current financial constraints that hamper the rapid sales development and which could easily be addressed by a new investor/buyer.

As XXX have no access to any Credit Lines, all the Stocks for example are bought and paid for in advance. We currently have around 12,000 product items in stock with a value of US$ 41,000.00.

XXX is a full member of the Malaysian Franchise Association and has duly registered all IP logos, Images etc for International Protection.

COMPANY VALUATION
The Valuation of the Business and hence the Sale will be based upon NET WORTH and projected Profits. The Terms of Sale are subject to negotiation and will include if required:-

1) Ongoing Management Support.
2) Assistance with any Legal Transfer.
3) Assignment of the Contracted Platforms.
4) Full Cooperation in the smooth transfer of the business.

Investor free registration to define your investment search – just let us know what you’re looking for: a great unique selling preposition (USP); a strong management team; a good market opportunity or the potential of good returns based on realistic financial projections.

CAPITAL.MY