Emerging Australian Functional Mushroom Business For Sale
Category: Functional mushrooms, wellness, food production, ingredients, ecommerce and wholesale
Location: Thomastown, 3074, VIC, Australia
Business stage: Operational stage with infrastructure, stock, equipment and commercial traction
Recent revenue: $100,000 from a secured commercial order
Ongoing contracted revenue: Approximately $100,000 every 3 to 4 months under an ongoing supply contract
Annualised contract potential: Approximately $300,000 to $400,000 per year, based on current order frequency
Stock included: Approximately $150,000- $200,000
Equipment included: Approximately $100,000
Warehouse Fit Out: Approximately $100,000
Asset base: Approximately $350,000 in equipment, fit out costs & stock combined
Recent operating result: Approximately $50,000 loss over the past 18 months
Profit outlook: Expected to become profitable from the next ongoing supply order
Reason for sale: Owner has other businesses requiring focus, time and capital
Business Overview
An emerging Australian functional mushroom business is now available for acquisition, offering an established foundation for a buyer wanting to enter or expand within the fast growing mushroom, wellness, food production, ingredient, ecommerce or wholesale sectors.
The opportunity includes approximately $100,000 in equipment and approximately $150,000 in stock on hand, giving the purchaser immediate access to physical assets, inventory, operational setup, supplier relationships and commercial groundwork without needing to build the business from scratch.
The business has already demonstrated commercial traction, including a recent $100,000 commercial order. Importantly, this is not a one time order. It forms part of an ongoing supply contract, with further orders expected approximately every 3 to 4 months. Based on the current stock position, setup and supply arrangement, the business is expected to become profitable from the next order cycle.
This is an attractive opportunity for a strategic buyer, existing food or wellness operator, ingredient company, supplement brand, ecommerce operator, manufacturer or investor who can bring stronger capital, distribution, sales channels or operational scale.
The business is only being sold because the current owner has other businesses that require their attention, capital and operational focus.
Financial Snapshot
Recent revenue is approximately $100,000 from a secured commercial order, with expected repeat order revenue of approximately $100,000 every 3 to 4 months under the current supply arrangement. This gives the business an annualised contract potential of approximately $300,000 to $400,000 per year, before any further growth from ecommerce, wholesale, retail, foodservice, private label or export opportunities.
The business has operated at a controlled early stage loss of approximately $50,000 over the past 18 months, while carrying setup costs, equipment, stock, product development and operational overheads. With the ongoing supply contract now established, the next order cycle is expected to move the business into profitability.
For the right buyer, this creates an opportunity to acquire the business at a level that may be significantly below the replacement cost, setup cost and time required to recreate the same infrastructure, stock position, supplier base, brand assets and operational platform.
Key Assets Included
The sale includes approximately $100,000 in equipment, approximately $150,000 in stock, brand assets, business goodwill, supplier relationships, operational setup, product development groundwork, available lab testing documentation, independent study information with RMIT University, and the ongoing commercial supply opportunity.
Opportunities
This business has multiple growth pathways available for the right buyer, especially one with stronger capital, distribution, ecommerce experience, wholesale networks, food production capability or existing wellness and ingredient industry relationships.
Key opportunities include expanding the ongoing supply contract, increasing wholesale sales into wellness brands, supplement companies, health food stores, cafes, restaurants, manufacturers and ingredient buyers, launching or expanding ecommerce sales, developing functional mushroom powders and extracts, building private label supply, supplying foodservice, entering retail distribution, and exploring export markets where Australian grown functional mushroom products and ingredients may have demand.
Rather than starting from zero, the purchaser receives a business with existing stock, equipment, commercial validation and a repeat supply opportunity already in place.
Work And Skills Required
The business currently requires management of approximately 10 hours per week, depending on the buyer’s growth plans, production model and level of outsourcing.
Production is run by 1 worker, 30-40 hours per week, and is able to produce $30k-40k worth of stock weekly.
This opportunity would suit a buyer with experience in food production, functional mushrooms, wellness products, supplements, natural health products, ecommerce, wholesale sales, retail distribution, ingredient supply, export, product development or brand building.
Seller Support Includes
The seller is willing to provide 3 months of training and transition support to assist the buyer with understanding the business and continuing operations.
Support may include supplier introductions, handover of available operational information, handover of product and stock information, equipment information, available lab testing documentation, information relating to independent studies with RMIT University, and introduction support relating to the ongoing supply contract where permitted.
The current operating site also benefits from a sublease arrangement with another business connected to the owner, which is currently covering 50 percent of outgoings. This arrangement is expected to continue for approximately 3 to 6 months after takeover, subject to final agreement, giving the buyer a smoother transition period and reduced short term operating pressure.
Reason For Sale
The business is only being sold because the owner has other businesses requiring their focus, time and capital.
This is not a sale due to lack of demand. The business has already secured a recent $100,000 commercial order, has an ongoing supply arrangement expected to generate approximately $100,000 every 3 to 4 months, holds substantial stock and equipment.
