Return To Opportunities List

Opportunities

Branding and Marketing Firm with 26% Profit Margin

Fully trained and adaptable staff!

CASH FLOW
$2,206,622

Specifications

  • Price
    $11,500,000

  • Revenue
    $8,559,887

  • Cash Flow
    $2,206,622

  • Location
    New York City

  • Service Area
    Nationwide

  • Profit Margin
    26%

  • Employees
    3 Owners + 30 FT staff: creative copy, creative art, client services + consultants and freelancers subcontracted out as needed

  • Reason for Sale
    Exploring other opportunities

  • Equipment
    $706,757

This multi-faceted branding, advertising, and marketing firm has a fully trained core staff and the ability to adapt to any market ebb and flow thanks to consultants and freelance workers being contracted as needed. The core staff is comprised of seasoned senior executives who have worked for large global advertising agencies. With a 29% profit margin, it’s fair to say that their work experience and dedication to the field is paying off. This agency provides all of the marketing services that a company could need including brand strategy, campaign development and implementation, web development, content marketing in television, print, digital, and social media, media planning and buying, and account-based marketing. With over $1.9M in assets and over $8M in annual revenue for the past 3 consecutive years, the possibilities that new owners have with this business are seemingly endless.

 

Primarily working with financial/retirement services, insurance, technology and healthcare categories, this agency is involved in industries that are playing an important role right now and using this opportunity to catch up in the digital space. The core team consists of 30 full-time senior creative copy, creative art, strategy, and client service staff. The typical project scope runs from $20,000 to $150,000. With current assets and staff, low-cost growth opportunities include continuing to build client relationships with blue chip clients, and expanding outside of the current clientele focus. The three owners currently handle client relationships, financial management, and creative products; they are willing to stay on for up to three years and do a promissory note of 5% plus an equity roll of 10%.

 

Priced at $11,500,000, this company is prime for purchase for anyone who wants to get involved in something proven and profitable. By continuing to build new client relationships, while cultivating existing connections, a new owner could certainly take this company to the next level.

Business Highlights

Year Established: 2004

Location:  New York City

Service Area:  Nationwide

Services: Brand strategy, campaign development, web development, content marketing in television, print, digital, and social media, media planning and buying and account-based marketing

Clients: Financial services, national insurance agencies, technology, communications, and health care businesses

Lease: 5,000 sq. ft. of open office space

Reason for Selling: Exploring other opportunities

Personnel: 3 Owners + 30 FT staff: creative copy, creative art, client services + consultants and freelancers subcontracted out as needed

Seller Training Period: 2-3 years, if desired

Growth Opportunities: Continue to build client relationships with blue chip clients

Current Owners’ Responsibilities: Client relationships, financial management, creative products

Financial Highlights

  • List Price: $12,500,000

 

  • A/R: $788,839
  • A/P: $199,126
  • Working Capital: $589,713
  • WIP: $436,802

 

·      *amounts may vary

Cash Flow Analysis

Description of Financial StatementP&L StatementP&L StatementTax ReturnTax ReturnTax ReturnNotes
2020-20212020201920182017
GROSS SALES$8,559,887$8,069,566$8,891,748$7,253,326$4,997,887
Net Income Shown on Financial Statement$2,300,078$2,312,347$3,197,568$2,139,523$1,506,060
ADDBACKS
Depreciation$0$0$2,728$2,729$2,728
Interest$1,200$27,392$40,040$31,162$18,198
Meals$4,969$10,655$17,632$14,866$29,817
Retaining Owners$-500,000$-500,000$-500,000$-500,000$-500,000$250,000 for Owner 1 & 2
Contributions$9,954$5,660$3,100$9,163$6,950
Owners' Disability Insurance$3,411$2,889$3,234$2,447$4,260
Owners' Long Term Care$16,438$15,657$15,657$14,911$19,521
Owner Health Insurance$65,208$41,619$38,786$37,000$47,775For Owner 3 (and 4 in 2017)
Owners' Biz Development$111,233$68,766$95,987$58,292$55,960Expense will be removed under new ownership
Consulting$0$18,750$0$0$0For sale preparation
Gifts$30,867$16,616$13,217$11,514$9,024
Owner Pension$182,416$167,581$186,000$183,000$240,000Owners are 70% on P&L
TOTAL ADDBACKS$-74,304$-124,415$-83,619$-134,916$-65,767
Seller's Cash Flow = Total Addbacks + Net Income$2,225,774$2,187,932$3,113,949$2,004,607$1,440,293
Profit Margin26.00 %27.11 %35.02 %27.64 %28.82 %
  • 4 year average profit margin: 29%

Clients

  • Financial Services
  • Insurance
  • Technology
  • Communications
  • Health Care

Specific information regarding clients is available upon the receipt of a signed Non-Disclosure Agreement.

Services

 

 

 

Personnel

  • 3 Owners
    • Owner 1: President
    • Owner 2: Creative Director
    • Owner 3: General Manager
  • 30 FT W2 employees
    • Creative Copy
    • Creative Art
    • Client Services
    • Finance
  • Consultants and Freelancers subcontracted out as needed

Growth Opportunities

  • Continue to build client relationships with blue chip accounts.
  • Cultivate existing connections.

Valuation Details

Attachments

Document Title / Description

This folder is empty.

Access to this Deal Room is restricted

Would you like to access the deal room?

Yes, please

Interested in
this business?

Complete the following information to sign an NDA and see more details!

Already have an account? Log in here.

Click to download NDA form

Print, sign and send to:

210 N 78th St. 2nd Floor
Omaha, NE 68114

Or fax to:

f 402.939.0857

Thinking of Selling?
When selecting an M&A firm, please use the following Scorecard: click here for our M&A Scorecard

The Firm makes no warranties or representation in consideration to the information provided above. All communication regarding this business must occur directly with The Firm Advisors, LLC. The Firm is not a real estate brokerage and does not sell real estate. The Firm solely advises on exit strategy.