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Highly Profitable International Trading Company

Gross: $2,139,787 (Sales thru Q3 2009)
Cash Flow: $135,765 (thru Q3 2009)

This business is an international trading company specializing in the sale of US cattle hides. The company sources supply of cattle hides throughout the US and around the world; then purchases and sells the hides to a well established customer base around the world.

The hides are exported, processed into leather in foreign countries such as China, Korea, Vietnam and India, then made into leather products such as shoes, purses, belts, gloves, wallets, upholstery, etc.

Nearly all customers are located overseas, but the company has established relationships with these customers, and many have a standing letter of credit to ensure payment.

The business can easily be operated and relocated anywhere in the world.

Market Outlook:Cattle hides are a commodity, and tracked regularly by the US Department of Agriculture. Prices fluctuate with world supply and demand. The US is the largest exporter of cattle hides - over $2 billion annually. US hides are preferred because of their quality and durability.

In the past decade, China began to boost its leather making capabilities, making it the largest importer of US hides. In 2007, Chinese imports were $1.16 billion, up 10% from 2006, and more than half the value of all US hides exports.

Growth & Expansion Opportunities:The current owner is retiring and no longer travels as much to develop new supply relationships or to court additional customers. Also, the current owner has chosen not expand into related commodities within in the hide market.

Competition:The competition is fairly segmented, and open to competition. Many of the competitors either view this particular segment of the business as a side business, or don't dedicate serious time and effort to developing relationships with smaller niche suppliers.

Financing:The seller has agreed to provide seller financing up to $245,000 to a well qualified buyer.