Opportunities
Branding and Marketing Firm with 26% Profit Margin
Fully trained and adaptable staff!
Specifications
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 productsFinancial 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 Statement | P&L Statement | P&L Statement | Tax Return | Tax Return | Tax Return | Notes |
| 2020-2021 | 2020 | 2019 | 2018 | 2017 | ||
| 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 | $47,775 | For Owner 3 (and 4 in 2017) |
| Owners' Biz Development | $111,233 | $68,766 | $95,987 | $58,292 | $55,960 | Expense will be removed under new ownership |
| Consulting | $0 | $18,750 | $0 | $0 | $0 | For sale preparation |
| Gifts | $30,867 | $16,616 | $13,217 | $11,514 | $9,024 | |
| Owner Pension | $182,416 | $167,581 | $186,000 | $183,000 | $240,000 | Owners 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 Margin | 26.00 % | 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
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