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Rapidly Growing Patented Designer and Manufacturer of Bedding Products and Textile Technologies Located in Southern US #63708 Sign NDA ► 2020 Revenue Est. $13,000,000 (78.2% growth over 2019) 2020 EBITDA Est. $3,500,000 (26.9% of Sales) 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. Don Ho Managing Director - M&A Email: DHo@generational.com Mobile: 972-740-9439 Generational Equity 3400 N. Central Expressway, Suite 100, Richardson, TX Fax: 972-392-1124 BUSINESS HIGHLIGHTS The Subject designs and outsources the manufacture of proprietary lines of branded and private label bedding products that are sold domestically and internationally, including at major blue-chip retailers and online stores. The Company also maintains its legacy sealing business through the sale of a patented and proprietary sealing tapes, films, and associated machines, which has numerous commercial and residential applications. Primary bedding products include fitted mattress covers, mattress pads, zippered mattress protectors, and pillow covers. These state-of-the-art complex barrier fabrics and seaming technology products protect from dust mites, allergens or bed bugs, while keeping a mattress free from spills and stains. In 2019, the product/sales mix comprised private label home textiles (80%), own-brand home textiles (10%), and textile trim items (10%). INVESTMENT BANK OF THE YEAR 2016 - 2017 - 2018 COMPANY STATS > Over 30 Yrs of Operations > Worldwide Operations > S-Corporation > 2,500 Sq. Ft. Facility > 95% Rate of Repeat Business > Blue-Chip Customer Base > 100% Non-Toxic Products that Complies with California Prop 65 Standards > $4 Billion Industry INVESTMENT APPEAL • Recession Resistant Business — The Company's products are essential for the good health of its users, while protecting very expensive mattresses. Despite the economic impairment in the US due to the Coronavirus and subsequent recession, the business continues to thrive with increased demand for the Company's products. • Proprietary Expertise, Patented Products, and Trademarks — The Company has patents, trademarks, and Copy Rights to protect is proprietary products and expertise. These technologies is what sets the Company apart from its competitors, allowing the business to achieve significant growth. • International Network — The Company maintains vendor numbers and relationships with several nation-wide and international companies, including online giants, such as Amazon and other well-known, blue-chip customers. The Company also has a global support network with international offices in select strategic locations. • Strong Financial Performance — The Company's revenue increased from $4,134,000 in 2017 to $7,295,000 in 2019, reflecting a CAGR of 32.8%. Revenue for the base year 2020 is projected to increase by 78.2% to $13,000,000. The Subject's EBITDA increased at a CAGR of 308.3% from $64,000 to $1,067,000 during the historical period. EBITDA for the base year 2020 is conservatively projected to increase to $3,500,000. Current interim financials (Sept 2020) reflects the business exceeding projections. • Strong Growth with Virtually No Debt — The Company has historically grown the business with virtually no interest-bearing third-party debt. The Company's balance sheet also reflects a strong net working capital position. • Owners' Commitment — Existing ownership believes in the business and are willing to retain stock, accept structure, and/or stay and operate for the foreseeable future. GROWTH OPPORTUNITY > Fragmented Industry Consolidation > Product Expansion > Develop Sales & Marketing > Geographic Expansion Customer Market Mix