Business Summary

Unique opportunity to acquire a leading AV rental and event production company based in the Bay Area, renowned for its commitment to delivering superior service through state-of-the-art equipment and tailored solutions. The company boasts marquee clients and preferred vendor contracts with top venues in the Bay Area. 

The company is led by the founder and supported by a part-time salaried employee who oversees office operations. For events, union contractors are hired based on project size and requirements. Operations are conducted from a 300 SF office and a 1,200 SF warehouse used for equipment storage. The retiring founder is willing to train the new owner for a revenue cycle (12 to 18 months) and transition all relationships.

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Key Metrics

$830K TTM July ’24 revenue
$430K TTM July ’24 SDE

$774K 2023 revenue | 37% YoY growth
$374K 2023 SDE | 89% YoY growth

Background

Founded in 2015 by an industry veteran with 40 years of experience, this AV rental and event production company delivers premium, customized audiovisual solutions using the latest technology. They cater to corporate meetings, seminars, and political events, among other hospitality categories.  They furnish equipment and offer full event support including stage preparation, on-site technical management, prompt troubleshooting, and detailed post-show evaluations. Strategic investment in cutting-edge audiovisual technology has ensured exceptional service quality. The company’s established reputation and ability to meet unique client needs create a strong foundation for continued growth and market leadership.

Key Highlights 

• Strong revenue growth and profit margins: Over the past two years, Brown AV has achieved a CAGR of 138.7%, reflecting a strong growth trajectory post COVID closures. Profit margins have achieved a 28% CAGR since 2022, indicating a strong improvement in operational efficiency.
• Diversified Revenue Base: Serving a diversified range of clients, including large corporate and political entities, and offering boutique services, ensures a diversified revenue stream.
• Quality Customers: The company has preferred vendor status with leading venues in the Bay Area, secured through contracts ranging from year-to-year to 5-years. It also has a strong reputation within its geography and its existing marquee clients.
• Boutique service specialization: The company distinguishes itself by offering bespoke services tailored to each client's specific needs, setting it apart from competitors providing more generic solutions.

Growth opportunities

• Expand Client Base: The company is well-positioned to attract high-profile clients, having successfully served large corporate events and political engagements. Continued focus on customization and quality offers potential for expansion into luxury weddings and exclusive conferences. A new owner can also take on more projects that the current owner is turning down, as he experiences excess demand. 
• Enhance In-House Capabilities: By further investing in in-house equipment, relying less on external suppliers, the company can handle larger and more complex events, while boosting its profitability and operational efficiency.
• New Service Offerings: By expanding services into virtual and hybrid event support, event consulting, training support, and interactive technologies like AR/VR, it can grow revenue stream.
• Geographic expansion: With experience in local, national, and international events, the company is well-positioned to expand into new markets. By leveraging its reputation and expertise, the company can explore opportunities in new regions and cater to a broader clientele.