Description.
We offer the opportunity to acquire a functional technical solution created for the sale of used car spare parts with all the necessary know-how, contacts, systems and processes.
It is not just a website or an idea, but a system that has actually worked and produced turnover, through which significant sales results have been achieved in the past and which has a strong growth potential.
What is it about?
The platform is built for the sale of used car spare parts and brings together approximately 100 million products from various sources in Central Europe. In essence, it is a digitalized car scrapping solution, through which you can manage product display, inquiries, orders, logistics and sales processes.
The entire system has been developed as a custom solution based on the Laravel framework and includes:
Inventory and order management;
Logistic workflows;
Supplier systems;
SEO and e-commerce logic;
Sales and customer service processes;
Know-how of the development team;
Contact network and suppliers;
Polish warehouse information and work instructions;
Logistic solutions for shipping in Estonia, the European Union and third countries.
One of the biggest advantages of this business model.
One of the main strengths of this solution is the fact that there is no need to keep your own inventory.
The system works on a model where the goods are realized only after the sale has taken place. This means that money does not get stuck under the warehouse and there is no need to invest in large-scale inventory or maintain large warehouse spaces and warehouse employees.
Practically the entire system is built on cooperation with larger and smaller car wreckers in Poland, which makes it possible to offer a very large selection of products without having to physically purchase or store the goods yourself.
This makes the business model significantly more flexible and scalable compared to the classic spare parts warehouse model.
Background and experience.
In the years, we performed contractual work for the portal of the Lithuanian company Xdalys. During this period, we got to know the used car parts online sales market very thoroughly, its bottlenecks and real potential.
It is important to understand that the same Lithuanian portal was able to make an estimated monthly turnover of over €300,000 even when their public ratings and scam-alert type feedback were at 1-2 stars in many places. It showed us very clearly the real market size and demand in this area.
Based on this experience, we decided to create our own system and develop a solution that would fix many of the problems we had seen with this business model over the years.
European and international expansion.
In the first year of operation, we mainly focused on sales within the European Union, and in some periods we were able to sell to practically every country in the European Union on a monthly basis.
The following year, we started actively looking for opportunities to expand our operations outside of Europe and found very strong logistics and cooperation partners for this. Thanks to this, we were able to mediate and send goods to third countries as well.
Ferrari 812 Superfast engine brokerage.
As one of the more interesting examples, we managed to help mediate a Ferrari spare parts deal worth nearly €60,000, where the buyer was a US customer.
It was a deal for a Ferrari 812 Superfast 6. 5L V12 engine, which we wrote about in more detail in our other project blog:
The story of the Ferrari 812 Superfast engine deal.
This particular transaction is not reflected in our official turnover numbers, as in this case we only offered a brokerage service, i. e. we brought the parties together. The risks were too great for both parties and therefore neither goods nor money moved through our company.
At the same time, it shows well what volumes and contacts it is possible to actually work with in this field.
Development and investments to date.
During the last two years, we have invested approximately 50,000 euros on the website, technical development and SEO. There are invoices and supporting documentation for all expenses.
During development, we built a functional technical infrastructure, processes and logistics that allow us to grow this line of business without having to start from scratch.
These results were achieved before a major drop in SEO visibility.
SEO, algorithm change and rebrand.
8 years ago, Google's algorithm update affected our visibility in search results. As a result, organic traffic decreased and sales results decreased.
We tried to improve the situation for several months, but in the end we decided to do a major rebrand and update the systems more thoroughly. Today we are operating under a new brand, and the first results show that the system still needs time and additional focus to fully restore SEO visibility.
In our opinion, the system still has a very strong potential, but since we are dealing with several other projects in parallel, we are not able to give the necessary attention and time to this line of business. Therefore, we would like to pass on the entire solution to a person or a company that wants to grow this direction.
Growth potential.
In our opinion, a realistic goal for the next 3-5 years is to achieve:
€250,000 - €500,000 monthly turnover.
Gross profit margins at around 30%+
Considering the size of the market, existing suppliers, previous experience and already established systems, we believe that this solution can reach significantly higher volumes than the results achieved so far.
The real value of the business and the trade secret.
Over the years, we have gone through a lot of problems, trials and failures to build this system. It is this experience and practical knowledge that is actually the most valuable part of this business.
Building the technical solution itself is not the most difficult part. The most difficult and valuable part is knowing:
What systems are needed;
What connections must exist;
Which partners to work with;
How logistics must work;
How data moves;
How to actually get the whole system working.
In essence, it is a trade secret, the construction of which has taken years of practical work and experimentation.
In our opinion, there is no company in Estonia today that can implement this solution quickly precisely because of the lack of knowledge, contacts and practical experience.
By purchasing this system, the buyer will have the opportunity to save an estimated at least 5 years of time, testing and a very large amount of nervous expense.
In addition to everything, this sale also comes with the domain and the domains associated with it. Additionally, social media accounts and also approx. E-mails of 3,000 different regular customers for use on the newsletter platform.
Transfer and a 3-month job shadowing period.
The price includes active 24/7 guidance as a job shadow during the first 3 months.
This period is not only intended for the introduction of the system, but practically for the smooth transfer of the entire business direction. As many processes, supply relationships, accounts and various contracts need to be changed to the new owner's name or company, daily cooperation and practical guidance takes place during this period.
We help on an ongoing basis:
When using systems;
In daily sales work;
In customer communication;
Organizing logistics;
When communicating with suppliers;
In learning work processes;
In understanding the logic of SEO and e-commerce;
Solving problems and running workflows.
If necessary, it is possible to involve one additional person for this period, either 0. 5 or full-time, so that the handover takes place as smoothly and efficiently as possible.
Investor opportunity.
We are also ready to consider the involvement of an investor, but in this case a maximum stake of up to 49%.
A prerequisite for such cooperation is a very clear long-term vision, including an understanding of:
How the business is grown;
What is the strategy for the next 3-5 years;
And what the investor's exit plan could be in the future.
In this case, a new company would be created to manage the used parts department of the home, and all contracts and other obligations would be transferred to this company.
What are the risks here?
The company's track record shows that the business model has a clear ability to make a profit. The current situation is temporarily affected by the rebranding and related SEO investments, the impact of which is expected to manifest itself gradually.
The new website was launched in SEO terms in February, and as usual, organic visibility and traffic need time to recover and grow. We expect that the impact of SEO will start to manifest itself more strongly in about a year. Although the sales results are currently lower than before, the company's potential continues to clearly exist and development is moving in the right direction.
For comparison: in March this year, the company's gross profit was 40,000 euros. In the calculation of a two-year period, this could give a value of approximately 24 × 40,000 euros, or 960,000 euros.
However, our asking price is currently only based on roughly 9 months of gross profit, which is realistic to achieve and potentially exceed. Therefore, we believe that considering the company's scalability, past profitability and renewed SEO potential, the offered price is very attractive and justified for the buyer.
Who is it for?
This solution works well:
For car wrecks;
To existing spare parts sellers;
For e-commerce companies;
For companies with a logistics or automotive business background;
For investors or entrepreneurs who want to enter the market with a ready-made system.
The biggest value is that the buyer does not have to start from scratch and spend years building up systems, contacts, logistics and know-how.
Sales territories.
During the last two years, we have sold and shipped goods to various European countries and also outside the European Union.
Map showing sales areas:
Google Maps sales areas.
Price and pricing logic.
The asking price is €360,000.
The price includes:
The entire technical solution;
Transfer of systems;
Contacts and supplier network;
Social media accounts and their content;
Kontaktide andmebaasi ca. 3000 eelneva kliendiga.
Ready-made newsletter contents and templates.
Logistics and work processes;
Development know-how;
Documentation;
3-month 24/7 job shadowing period;
Meetings and acquaintances with partners;
Practical guidance and support;
If necessary, today's phone numbers and emails.
Everything necessary to continue and operate the service.
It is important to understand that today's pricing is not based on 48, 24 or even 12 month gross profit multiples.
With a fully recovered SEO and a stable €40,000+ gross profit, the value of such a business line would be significantly higher and we would not sell it at today's price level.
Today's price takes into account the fact that the buyer will take over the system before the SEO is fully recovered and will have the opportunity to grow it back to previous or higher levels.
The pricing logic is rather based on the potential for about 9 strong months of gross profit, which we consider realistically achievable based on the existing system, experience and market.
The transaction does not include the legal entity; only the website, related digital assets, and associated business systems will be transferred to the buyer.