Issue link: http://deals.uberflip.com/i/1323283
2019 Est. Revenue $1.1M | 2019 Est. EBITDA $373K Founded in 2008, the Company manufactures and sells proprietary insect interceptors for the detection and management of bed b ug infestations. The Company currently has three US patents issued for its proprietary products. Placed under bed legs where people are sleepi ng, the proprietary product acts as a barrier, providing bite and anxiety relief, as well as a monitor. All bed bug life stages are clearly visible in capture wells. The product the Company has developed has been proven to be more reliable than visual inspections, canine inspections, or resident awareness for detecting bed bug infestations. The Company is committed to the development of effective, reasonably priced technologies for monitoring of public health insects. Targeted customer markets include online retail distributors (61% of sales), commercial pest control (22%), international sales (16%), and public housing (1%). The current customer bases consists of approximately 150 active accounts and management estimates that roughly 96% of sales are a result of repeat customers. The Company serves customers primarily located in the US (83% of sales), Swede n (6%), and other European countries (4%). The Company is organized as an S-Corporation operating from a leased 3,876 square foot warehouse in the Southeast. The facilities can accommodate more than double the current revenues without major facility improvements. The Company's staff totals 10 full- time and 3 part-time employees including 1 active principal. For more information, please sign the Non-Disclosure Agreement DISCLAIMER: All information contained in this document has been provided by the subject company to Generational Equity and wh ile believed to be correct has not been verified. Accordingly, Generational Equity makes no representations or warranties as to accuracy and truthfulness of such information. The recipient hereof acknowledges that Generational Equity shall not be li- able for any loss or injury suffered by said recipient in any way connected to the delivery by Generational Equity of this document. At all times Generational Equity and its affiliate network members is an agent for the seller and not for the buyer. Generational Equity's fees are paid by the seller. Sam Sumner, Senior M&A Advisor Tel: (205) 870-1717 Email: ssumner@generational.com Generational Equity, LLC 11175 Cicero Drive, Suite 100 Alpharetta, GA 30022 Client #62065 www.Generational.com I www.DealForce.com Investment Considerations Superior Reputation & International Reach The Company has a long-standing reputation for providing quality products, reliable expertise, and superior customer support. Furthermore, the Company's geographic footprint is international in scope, as it has supplied products to customers in Canada and throughout Europe. Outstanding Growth Opportunities Management has maintained strong sales and margins despite a lack of resources dedicated to aggressive marketing. If properly capitalized, the Company has opportunities to expand its national and international reach and broaden product offerings to further improve app eal with new and existing customers. Overall Growth Expected in Industry Revenue (in current dollars) for US fertilizers, chemicals, and pesticides is forecast to grow at an annual compounded rate of 5% between 2018 and 2022, based on changes in physical volume and unit prices. (Source: First Research, Industry Quarterly Update, January 2018) Manufacturer of Proprietary (Patented) Insect Pest Control Device Located in Southeastern US Region -- NDA #62065 Recast Historical and Pro Forma Statement of Income (a) For the Fiscal Years Ended December 31 ($000) Historical Est. Projected 2016 2017 2018 2019 2020 2021 2022 2023 2024 Sales 1,346 1,315 1,004 1,100 1,200 1,300 1,400 1,500 1,600 % Growth -- -2.3% -23.6% 9.5% 9.1% 8.3% 7.7% 7.1% 6.7% Gross Profit 1,025 980 802 878 958 1,039 1,119 1,200 1,281 % of Sales 76.1% 74.5% 79.8% 79.8% 79.8% 79.9% 79.9% 80.0% 80.1% EBIT 557 502 296 373 438 506 573 642 713 % of Sales 41.4% 38.1% 29.5% 33.9% 36.5% 38.9% 40.9% 42.8% 44.6% EBITDA 558 503 297 373 439 508 576 645 716 % of Sales 41.5% 38.2% 29.6% 33.9% 36.6% 39.1% 41.1% 43.0% 44.8%