Business Summary:
Founded fourteen years ago, the company designs, produces, markets, and sells a variety of innovative office and organizational products. The company’s diverse and loyal customer base includes numerous “blue-chip” office supply companies and leading retailers, including many household names such as Office Depot, Staples, and the Sharper Image. The company’s customers average fifty to one-hundred separate orders per week. The company primarily sells to its customers through its own part-time sales efforts and through two experienced manufacturer reps. The company maintains an attractive outsourcing-based business and operating model that enables the company’s two principles to manage all aspects of the business on a part-time basis.
The company competes in a large, stable, and growing multi-billion dollar industry and the company’s products participate in a niche that is growing much faster than the industry as a whole. The company’s principles do not monitor the company’s competitors and they do not manage the business with an eye towards the company’s competitors, which includes several larger and less-nimble companies as well as in-house and private-label manufacturers. The company has an attractive revenue and operating model and produces strong gross and net cash flow margins. The company has clear visibility for sales and profits for at least the next eighteen to thirty-six months and forecasts solid growth in sales and profits during this time. Furthermore, the principles have well-positioned the company, creating compelling long-term growth prospects.
The company presents an attractive value-creation opportunity for either an industry, or strategic buyer, as well as an individual buyer-entrepreneur. Many of the company’s major business processes are outsourced to experienced and cost-effective third parties, such as a third-party fulfillment operator. However, by bringing one or more of such functions “in-house,” another company could readily achieve additional profits and free cash flow. Additionally, since the owners of the company have other interests, the company would benefit from more focus, renewed energy, and additional resources brought from new entrepreneurial ownership.
For additional information, contact Dan Mytels at 650.342.0022 or email him directly at dmytels@aol.com.
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