Michigan-Based Promotional Materials Distributor (RA130)

Status
Transaction Completed

Company Summary

This Company has a decades-long record of providing an extensive catalog of promotional and marketing materials as well as corporate apparel to a broad spectrum of corporate and retail clients. The company has been providing identity products to a wide variety of industries for over 20 years. Corporate accounts are their primary market, with additional sales in the retail/resort market. The Company is known for quality products that feature logos or other marketing messages on any of thousands of items. It has developed an extensive supply chain that meets the needs of clients whose loyalty has been earned by fair, honest business relationships. The owner has transferred most responsibilities to trusted staff, with operations structured to let a new owner step in with little up-front experience in the business.

Growth Opportunities

Expanded Marketing – Growth to date has happened with minimal marketing.  A new owner’s investment in marketing, particularly a greater online presence, could greatly expand the Company’s customer base as well as boost sales of additional products to existing customers.

Replicate Exclusive-Supplier Business Model – The Company is the sole provider of corporate logo items and work wear for a major corporation, through a dedicated online portal. The Company has the potential to replicate this model of order and fulfillment services for other high-volume customers.

Investment Highlights

Highly Qualified Staffing – Key positions are filled with staff with long tenure and loyalty to the Company, including managers who have taken on duties previously carried out by the owner.

Extensive Product Line – High sales volumes and long-term vendor relationships give the Company an advantage in offering thousands of quality products at competitive pricing, providing a high level of value to customers. The Company has more years of experience and a better reputation than many of its competitors. The Company is working to improve and develop their ability to provide custom websites to corporate customers who desire to offer their employees greater direct access to purchasing corporate apparel.
Turnkey Operation – The real estate occupied by the Company (including office, production and inventory storage space) is owned by a related third party and is offered as part of the sale. The facility has up to 25 percent of unused space to facilitate growth.
2018 Revenue: $2,300,000
2018 Adjusted EBITDA: $336,000
 

Non-Disclosure (LINK)