Business Description
Amazing opportunity to become a majority owner of an acclaimed Design & Manufacturing Company specializing in the creation, manufacturing, and installation of cosmetic product displays for major beauty brands. The owner and founder is looking for a new majority partner to help grow the business. There are significant opportunities for revenue growth, depending on varying appetites for capital investment. The company realized $4M in revenue between January and June of 2024.
The company is based in New York (with employees primarily working remotely in the area) and operates through a deeply integrated manufacturing partnership in China. Local leadership in place will continue to oversee China operations. The highly trained team of 10 employees in New York, and 6 in China (including engineers, designers, project managers, production managers, quality assurance, logistics director, and an administrator) will stay on after the sale.
Key Metrics
$9M 2024E Revenue
$2.1M 2024E EBITDA
$6.6M 2023 Revenue | 45% CAGR 2021-2023
$1.5M 2023 EBITDA | 62% CAGR 2021-2023
Background
This 16-year-old design, engineering, and manufacturing company has established itself as a leading force in the beauty industry, recognized for its expertise in crafting retail merchandising, fixtures, and displays that capture the brand identities of major makeup companies. The company was founded by an experienced entrepreneur and industry veteran. Over time, the company has transitioned away from inhouse manufacturing to working with a sophisticated network of direct contractors in China, increasing profits and facilitating rapid scalability.
Key business details
- Recurring Revenue Streams: The company has long-standing relationships with leading global cosmetics brands and their subsidiaries. The company has preferred vendor status with these brands, and is the go-to for top notch design and manufacturing quality.
- High Value-Added Service Provider: The company offers bespoke, made-to-order display and packaging solutions for cosmetics and personal care clients.
- Industry-Leading Expertise: The company is renowned for its technical expertise in design, marketing, and display production with best-in-class in-store execution capabilities. This company is the only beauty display manufacturer with proprietary paper & board capacity in China, and is able to capitalize on the growing demand for sustainable products.
- Strategic Restructuring: During the pandemic, the company restructured and relocated fabrication from New York to China, enhancing core capabilities and flexibility while reducing overhead and increasing profit margins.
- Robust growth opportunities: The company has ample room for organic growth driven by expanding market demand, technological advancements, and strategic partnerships with key players in the cosmetics and personal care industries.
Growth opportunities
Multiple growth levers depending on level of investment:
- Geographic expansion: The company can expand beyond North America, tapping into regions with growing demand for cosmetic and personal care products, such as Europe, Asia-Pacific, and Latin America. This can be facilitated by leveraging existing relationships with international brands.
- E-commerce expansion: The company can expand into e-commerce by offering tailored digital display solutions and forming partnerships with online retailers.
- Industry expansion: The company can prioritize growth into beauty-adjacent markets & customer pools (e.g. displays for chains of medspas and salons) to diversify and increase revenue.
- Strategic partnerships: The company can invest in establishing a dedicated development hub to drive innovation and secure contracts with major retailers who have initiated conversations with the company.
