Issue link: http://deals.uberflip.com/i/1323418
Established Smoking Products Distributor Trusted Name in the Butane Lighter and Torch Industry U.S. Region California 2020 Est. Revenue $3,800,000 2020 Est. EBTIDA $1,064,000 The Company is a distributor of top-brand torches, lighters, and smoking accessories. The product line, including the Company's own trademarked brands and other widely recognized names, is known for its quality, selection, and performance. Butane torch models are simple, safe, and ergonomically designed to get the job done. Torch lighters create a precise flame that is hotter and more reliable than an ordinary disposable lighter. The Company primarily sells to smoke shops and cigar shops, as well as restaurants and bars. With over 1,500 active accounts throughout the US, no more than 5% of revenue is generated from any one state and no single customer generates more than 1% of revenue. The Company operates from a 10,000 square-foot shareholder- owned warehouse in Southern California. Investment Considerations: Patented and Trademarked Products: The Company's product line includes several of its own brands. It holds three trademarks, as well as three design patents for lighters. Competitive Edge: The Company's brand is more well-known and more associated with quality than any other in the category. It has a larger selection of products, different color options, and more exclusive and unique designs than its competitors. Diversified Customer Base: The Company sells its products to over 1,500 smoke and cigar shops, eating and drinking establishments throughout the US. No single customer accounts for more than 1% of revenue. Strategic Growth Opportunities: Management has identified the following avenues for additional growth: increase the salesforce; expand to Europe and other international markets; and sell to national chains. Rising Gross Profit Margin Trend: The Company's gross profit margin increased from 44.9% to 53.2% of revenue between 2017 and 2019, driven by more sales of higher margin products. Cole Preston, Senior Vice President (949) 209-8744 | cpreston@generational.com Client # 64223 Confidentiality Link: NDA_64223 DISCLAIMER: All information contained in this document has been provided by the subject company to Generational Equity and while believed to be correct has not been verified. Accordingly, Generational Equity makes no representations or warranties as to the accuracy and truthfulness of such information. The recipient hereof acknowledges that Generational Equity shall not be liable 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.