MergerPlace

Rapidly-Growing Niche Digital Media

Michigan


  • Asking Price: $1,600,000
  • Gross Income: $1,319,177
  • Cash Flow: $625,841
  • Real Estate: Not Disclosed
  • Inventory: Not Disclosed
  • FF&E: $95,000
  • Listing ID: #210261
  • Established: 2014
  • Employees: 10

Business Description

The Company is a profitable and rapidly growing Michigan-based niche digital media agency. Since the Company’s inception, demand has been strong and continues to build, with sales set to double in 2018 vs 2017 and continue upwards in trajectory, driven by increased demand from existing clients and new prospects. Despite recently raising the internal billing rate by nearly 25%, capacity remains the Company’s biggest challenge. TTM sales are $1.31MM and the owner projects 2019 sales at $1.895MM!
While the creative team maintains an expansive set of technical and artistic capabilities, most of the Company revenue is derived from creating digital assets for clients in the furniture, medical device and consumable products industries.
The owner has been working in the industry for nearly two decades and is mentally prepared to pursue other interests. However, with the burden of navigating the challenges of growth removed, ownership is open to a gradual transition out of the Company and would even consider a multi-year employment agreement, if a new owner would find that desirable. Ownership estimates that an individual without a background in the niche animation services the Company provides would need approximately 6-months to become comfortable with the industry vernacular, standards, and procedures.
The office is leased from an unrelated third party.
Thank you for reading this overview. The extent of the information that we are publicly permitted to reveal about this opportunity is contained in this overview. Please submit your contact information in the provided form. We have automated the processing of NDAs and sending of information for speed and efficiency. You will be sent a link to our online NDA. IF YOU DO NOT RECEIVE THE NDA LINK, PLEASE CHECK YOUR JUNK MAIL. If the email cannot be found please email info@caldergr.com and request a PDF version.
Once we receive your NDA and answers to some basic questions the Confidential Offering Memorandum (OM) will be sent to you from the project manager.
IF YOU DO NOT RECEIVE A FOLLOW UP EMAIL AFTER YOU SUBMIT YOUR NDA, PLEASE CHECK YOUR JUNK MAIL FIRST. If you do not see the email there, please email info@caldergr.com for support. Thank you in advance!


Business Details

Primary Business Category: Services - Other Services
Location: Michigan

Company Information

Year Established: 2014
Home Based: No
Franchise: No
Relocatable: No
Number of Employees: 10

Financial Information

Asking Price: $1,600,000
Gross Revenue: $1,319,177
Cash Flow: $625,841
EBITDA: $331,187
FF&E: $95,000
Seller Financing Available: Yes

Property Information

Growth & expansion opportunities:

Better Market to Existing Clients - The lowest cost and most efficient means of driving higher sales would be to reach out to existing and past clients. Due to the high volume of work that the Company has been receiving throughout the year, it has refrained from sending out email blasts showcasing the Company’s recent work to over 300 select individuals and organizations. Resuming this effort would be as simple as flipping a switch. Target Advertising Agencies - Making a concerted effort to target advertising agencies may be an excellent avenue for additional growth. Advertising agencies frequently work with companies that are looking to market products and understand the benefits of utilizing the niche digital assets that the Company produces. Usually, these firms are too small and non- specialized to afford an in-house department, so this work must be outsourced to firms that specialize. Software Development Partnership – The Company has been working closely with a software development company in the development of cutting edge consumer products applications that integrate with the Company’s service offering. This partnership is on the brink of bringing $250-500K in revenue for the Company in the coming year (that would continue into the foreseeable future).

Competition:

Artistic Team – The Company’s most important competitive advantage is its artistic team. With capabilities ranging from photography to lighting to 3D animation, there’s very little that this group of talented individuals cannot do. Premier Clientele – The Company’s top customers are very large, successful and well-known brands that the Company is well integrated into. Strong Growth – In 2016, the Company generated $818,000 in revenue. That number has jumped to $1.3MM in the twelve months ending August 2018 and is forecasted at $1.895MM in 2019. That would represent a 23% sales growth rate over 4 years!

Reason for selling:

Transition to other opportunities. Abundant growth opportunity awaits a buyer that has more experience scaling companies.

Support & Training:

Ownership willing to provide reasonable and customary transition assistance.

Contact Business Seller

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Business Listed By:

Max Friar

Calder Capital, LLC