Details

The company, located in the southeastern US, is a highly successful franchisor and producer of specialized local direct mail marketing programs. The Company’s loyal franchisee base, whose customers experience much better response rates than afforded by traditional direct mail, have enabled the Company to consistently deliver excellent returns and increasing profits. The Company has a loyal group of 48 franchisees in 23 states, who in turn enjoy a very loyal customer base; it has grown revenues and profits significantly in recent years until experiencing a downturn in 2020 caused by the COVID-19 pandemic.

The Company performed at a record-breaking level in 2019, reaching nearly $9 million in sales with adjusted EBITDA, which features a minimal addback profile, of $1.4 million. These results were a marked improvement over 2018, itself a great year at $8.4 million in sales and $1.2 million of adjusted EBITDA.

As the majority of customers are local (to the franchisees) small businesses, the COVID-19 pandemic caused performance to drop in 2020, but the Company is rebounding strongly. Sales were $6.4 million for TTM ending September 30, 2021 with adjusted EBITDA of $490,000. The Company expects to return to historical levels by the end of 2022 and it expects continued improvement in future years.

The majority shareholder, who owns 99% of the Company, acts as President/CEO. The remaining 1% is owned by a long-time employee/officer. The majority shareholder seeks to exit but will stay on for a mutually agreeable transition period. The building comprises 40,000 sq. ft. and the Company leases approximately 30,000 sq. ft. from the majority shareholder, with the remainder leased to a third party. The owner is open to either selling the real estate or negotiating a long-term lease with the buyer of the Company.

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