Description of the business for sale
The company is financially sound with appreciable growth of its revenues and profits, and a solid balance sheet. Revenues for 2005 exceeded the $3 million area with cash flow near $600 thousand. These strong results are primarily from an improving gross margin position from a focus on unique sales and strong client service, but also result from a more-efficient operation.
Executive Summary:
We have been retained to identify an acquirer for a company in Los Angeles, CA. The Company is a strong-growth home decor fabric distribution Company whose core business is supplying elite home funishing design house. This business is quite stable with consistent growth and an upward trend in its financial results.
Having generated revenues of $3 million in 2003, $3 million in 2004 and $3 million this past year, the Company is conservatively forecasting that it will at least hit $3.5 million again in 2006 with growth to $4 million and beyond likely.
The company is an A+ company in this space. They focus heavily on service, have a strong record of repeat customers and drive gross margins in the mid 20% range.
On a product basis, this firm targets upscale top of the line products in the home furnishing industry. Their main line of product is not price-sensitive. The company has a strong reputation in USA. They make great use of their designers and suppliers, and have multiple sources in different countries, continues business development including direct sales to various areas of home furnishing suppliers.
The Company is an appealing acquisition target with many strong attributes:
Consistent revenue growth
solid profits and above average margins for its industry
Strong and improving cash flow
Notable client base
Clean balance sheet with no long-term debt
Efficient operation
Acquitition Terms
The owners will entertain offers of varying financial and legal structures; each will be evaluated on its own merit and in relation to other offers. Based on preliminary v
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Description of the facilities
Furniture, fixtures, and equipment = 125000
Furniture, fixtures, and equipment included: Y
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