C. Ross Hedges & Associates
Specializing In
Private & Confidential Ownership Transfer
Wearables & Promotional Products Company
SOLD
$1.560 Million Revenue with $493,000 EBITDA
OVERVIEW: This Supplier of Sportswear, Spiritwear and Promotional Products to School Markets and Major Corporations has developed an established reputation for quality of service in its industry. Their strong presence is allowing this supplier to develop a steadily growing base by expanding its list of Primary Customers while enjoying solid returns. With continued attention to the details of providing quality services and continued effort to expand its customer base this Supplier of Sportswear, Spiritwear, and Promotional Products is poised for continued strong growth.
TERMS: No specific asking price for the franchisor has been established. Instead, the competitive market will establish the value of the Company. This opportunity will attract strong buyer interest, and it is expected that there will be multiple valuations offered based on each buyer’s understanding of the business and financial aspects of the company, its strategic position in the industry, and synergies that each buyer brings to the transaction.
BUSINESS ACTIVITY: The current market is strong in the Sportswear and Spiritwear areas due to the supporting nature for enthusiastic fans toward their favorite sports teams and also for parent’s commitment toward supporting their kid’s athletic endeavors. The market of Corporate Promotional items is currently experiencing a contraction.
2005
2006
2007
2008
2009P
2010P
2011P
Revenue
$769,000
$1,044,000
$1,538,000
$1,545,000
$1,560,000
$1,826,000
$2,191,000
EBITDA
$64,000
$69,000
$479,000
$490,000
$493,000
$550,000
$632,000
Margin
8%
7%
31%
32%
32%
30%
29%
HISTORY: The company was established in 1989.
MARKETING STRATEGY: The primary target markets include spiritwear for schools including K thru 8 and high schools, and corporate identity sportswear, spiritwear, and other promotional products. This company has a customer list with many schools in Chicago and its suburbs and many well known Corporate Clients.
DAYS AND HOURS: 8:00am to 5:00pm M-F
EMPLOYEES: 2 plus the Owner / Operator.
ASSETS: As adjusted to Fair Market Value (FMV) for Normalized Balance Sheet through 5 mo's of 2009.
Accounts Receivable $110,670
Inventory $ 30,500
FF&E $ 28,000 Owner’s estimate of fair market value of Furniture, Fixtures & Equip.
LIABILITIES: As adjusted to FMV for Normalized Balance Sheet through 5 months of 2009.
Accounts Payable $25,600
Current Liabilities Owner is to remove debt at close of sale
Long Term Liabilities “ “ “ “
FACILITIES: The business is currently run out of a rented facility and will need to be relocated to another facility. The space requirements for this business would be approximately 1,900 SF of mostly office and showroom space.
REASON FOR SALE: The Owner wishes to pursue other business opportunities.
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