E-Commerce Third-Party Logistics (3PL) Business that Stores, Sells and Ships Products from Fulfillment and Distribution Center at 40,000 SF Warehouse
Industry Expertise
Distribution, Food and Related Businesses
Location
Business Broker
Situation
Sprocket Express LLC is an e-commerce third-party logistics (3PL) business that stores, sells and ships products from a fulfillment and distribution center at its 40,000-square-foot warehouse in Plainville, MA. They collaborate with consumer product businesses and clients who sell a wide variety of products ranging from hair care to books and clothing to vitamins. They also work with other e-commerce websites.
With name recognition locally, regionally and internationally, Sprocket Express had built a strong company that hosted more than 200 successful e-commerce businesses. However, as one of the owners was preparing to retire, they decided to sell the business.
BayState Business Brokers’ Approach
The owners contacted BayState Business Brokers and Business Broker Brian Labonte responded quickly and attended multiple meetings to learn about the space and Sprocket Express’ unique needs.
Brian led BayState’s proven process, developing BayState’s Confidential Brief to present the business to targeted buyers. Then he quarterbacked the process from start to finish managing the due diligence effort, keeping the owners informed and ushering the offer letter, P&S and closing.
Additionally, Brian introduced both the buyer and seller to attorneys he knew who had previously worked together, making the process significantly easier for both parties.
Results
The buyer was an e-commerce business from California with a nearly identical business model to Sprocket Express. Like the seller, the buyer had also been active in the 3PL business for a while, and the owners had known each other, so it became an excellent buyer-seller match.
For BayState, Brian led negotiations resulting in an agreeable price between buyer and seller, while ensuring both sides were treated fairly. An added benefit to the sale was that the new owner achieved another key goal: improving shipping speed throughout the United States with an East Coast presence.
