Issue link: http://deals.uberflip.com/i/1323418
HIGH-MARGIN, HIGH-GROWTH BABY PRODUCT PRODUCER & DISTRIBUTOR #62433 BUSINESS HIGHLIGHTS The Company delivers a refreshing op on of well-designed juvenile products at great value, to meet the needs of babies, toddlers, and young children, as well as the design sensibility of parents. The Company's line of nursery bedding, playroom decor, and room accessories combines fashion with func on for life stages from newborn to young teens. Products under these brands are shipped directly to consumers as well as to wholesale buyers. The Company has markup factor of 100% to 200% for baby items, ligh ng, and play-mats. The Company typically sells wholesale products to big-box stores at 1.2x landed cost. Product lines include: Moses baskets and bedding, gi and laye e collec ons, ligh ng including ceiling fixtures, table lamps, and shades, bedding including sheets, blankets, and dust ruffles, organic bedding & laye e and room décor including window and floor treatments. Ahmad Behja Senior Vice President - M&A E: abehja @genera onal.com D. 203-716-1185 M. 203-945-8919 INVESTMENT BANK OF THE YEAR 2016 - 2017 - 2018 DISCLAIMER: All informa on contained in this document has been provided by the subject company to Genera onal Equity and while believed to be correct has not been verified. Accordingly, Genera onal Equity makes no representa ons or warran es as to the accuracy and truthfulness of such informa on. The recipient hereof acknowledges that Genera onal Equity shall not be liable for any loss or injury suffered by said recipient in any way connected to the delivery by Genera- onal Equity of this document. At all mes Genera onal Equity and/or its affiliate network members are agents for the seller and not for the buyer. Genera onal Equity's fees are paid by the seller. REVENUE / EBITDA 2019 Revenue INVESTMENT APPEAL a. Scalable Model: The Company has been built to be scalable with established customer rela onships, innova ve designs, sought a er products and market development strategies, and excellent opera onal management. b. Licensing and Trademark Brands: The Company owns several trademarked product labels and has several licensing agreements covering na onal and interna onal brands. c. Strong Sales Growth and Earnings: Sales and net profit margin increased consistently during the historical period. The Company had a revenue CAGR of 20.8% and an EBITDA CAGR of 86.5% during the historical period. d. High Return on Assets: The Company's return on assets was 37% in 2019. e. High Repeat Business Revenue: In 2019, 90% of revenue was derived from past clients. These clients have a high level of "s ckiness" and have had rela onships with the Company for many years, as far back as two decades. f. Management Exper se: The business is led by an excep onal management team of notable and well- respected industry experts with strong fashion and tex le development experience, as well as marke ng background and educa on. The shareholder is not looking to leave the business but would like to leverage his strengths with the right partner to con nue to grow the business. Genera onal Equity 125 Park Avenue, 25th FL New York, NY 10017 T. 212-401-7961 F. 203-738-1100 $0.92M $1.27M $3.4M $4.5M 2020 Revenue (PROJ) 2020 EBITDA (PROJ) 2019 EBITDA SIGN NDA ► 2019 REVENUE MIX Bedding 27% Flooring 24% Ligh ng 19% Home 18% Blankets 12% 87% TTM REVENUE BY KEY CUSTOMERS Other Customers SAMPLE OF PRODUCTS ACTIVE ACCOUNTS 2019 40+ REPEAT BUSINESS 2019 90% STAFF OVERVIEW Full- me 8