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May 11, 2019 — The target acquisition is an established, profitable, e-commerce retailer with a growing Health and FItness branded products. The company markets several successful, proprietary brands, in the health and wellness sector. The products are developed and produced in collaboration with US-based, private label, certified, contract manufacturers.
Current B2C market channels are primarily through the premier e-commerce platforms, that manage most of the payment and fulfillment mechanics. Growth opportunities are plentiful and include adding products to the established brands, organic growth through enhanced promotion and expanding sales to brick and mortar retailers. This will be achieved with the guidance of a top buy-in marketing and management team.
$16 million funding is sought, by an exceptionally qualified management buy-in team. Control Equity considerations would be based on an opportunistic acquisition price of 2.3X TTM $8M+ EBITDA. The target business for this transaction is under a signed LOI with the buy-in management entity. A control equity buyer would enter a management agreement with the operating management, providing equity participation and upside incentives that are mutually agreeable, recognizing that they are contributing the opportunity to buy at roughly half of the market valuation.
The current owner/managers will remain and reinvest to retain a 25% equity position in the new entity, based on their confidence that the addition of the buy-in management resources will allow the company to achieve significantly higher levels of growth and profitability, to the benefit of all involved.