This 5 year old hair extension sales and import company has experienced tremendous growth. Revenue has grown from $211,000 in 2011 to over $15,000,000 in 2015. They did reach $19,000,000 in 2014 but experienced a drop in revenue in 2015 because of quality control issues when they added a second manufacturer. This issue has been corrected. They import human hair from China for processing and sale in two retail locations and also through their website. The hair is processed in their warehouse in Atlanta where a special procedure adds to the quality and longevity of the piece. The founder and owner realizes that this business needs a more experienced leader to take it to the next level of growth and efficiency. Their net profit margin is between 12 and 14%. However, in reviewing their numbers it appears there is much room for improvement.
The ownership is lacking the professional business management skills and experience needed to properly run a company of this size. While he built a good model and a strong brand name to reach $19,000,000 in revenue in 2014 he understands to continue to grow the company needs the right guidance. The owner is willing to stay on and work with the new ownership for a period of time. He is open to part of the purchase price being in the form of an earnout.
We are asking $3,500,000 about 2Xs his owner discretionary earnings.
Contact:
Preferred Business Brokers, Inc.
Matt Wochele, CBI 404-863-2200
J Snypp, VP 404-966-5989
Status: Sold