Company with an official representation of a cosmetic brand

Basic information

The subject of the sale is a company focused on wholesale and retail sales of cosmetic goods of a well-known brand. The main focus of the company is wholesale sales and representation of an established cosmetic manufacturer, while the company also operates a store and e-shop. The company has been operating for 12 years and during this time has gained a stable position on the market and a wide customer database.

The company has an official representation in the Czech Republic of one of the most famous, globally successful cosmetic brands. The company has a 69 m² store in a lucrative location in the capital of the Czech Republic for rent. The lease in the branch is concluded for a fixed term until 2028, with contracts being concluded for a standard 5-year period. Opening another store is certainly a valid option for further expansion.

The largest part of the company’s sales comes from wholesale activities (almost 70-80%). Within wholesale activities, the company achieves a margin on products of approximately 40%. The remaining 20-30% is generated by stores and the e-shop, which experienced a sharp decline during Covid, and from this shock, the numbers are gradually returning to pre-Covid levels. The company has very few direct competitors in the retail sector in a given price range. Thanks to this, the margin on products sold in the store reaches up to 200-300%. The company also focuses on operating an e-shop, which achieves a turnover of approximately 150 thousand CZK per month, achieving a similar margin there as in the store.

The representation of a renowned brand is of great value, which is not exclusive, but currently it is already an official representation and the manufacturer is not interested in providing this to any other entity. The company operates under a master franchise agreement with the possibility of extension. In addition to its own sales channels, the company uses well-known chains in the Czech Republic and Slovakia, as well as large e-commerce players operating throughout Europe, to sell the products of this manufacturer.

The sale includes tangible assets, which include all store equipment and inventory worth approximately CZK 800 thousand. Intangible assets include primarily the official contract for the representation of a cosmetic brand in the Czech Republic and an extensive database of customers from the e-shop. In addition, there is also software, websites, active social networks and other forms of advertising. These include advertisements in the most widely read women’s magazines, cooperation with women’s portals, participation in various fashion shows and much more.

Currently, the company employs 7 employees, including the owner. The owner only supervises the company’s operations and resolves strategic issues. The company is fully functional and autonomous and can continue to operate without interruption even after it is handed over to a new owner.

Financial results