GOTTESMAN COMPANY &  Cooperating Intermediaries Seller Profile
United States, Canada & Europe Since 1985
America’s International Network of M&A Business Brokers

Acquisition Opportunity

PERSONAL GROOMING-BROW THREADING COMPANY

Business Description:

The Company is a well-established pioneer and market leader in the brow threading niche of the beauty industry. The exceptionally high (66%) gross margins, recurring monthly income stream through membership subscriptions, add-on revenue sources, and potential for rapid growth will provide a strategic or financial acquirer with strong cash flow and a rapid ROI. Well positioned in the $65 billion beauty market, the Company benefits from predictable consumer spending, even in economic downturns. Its steady, growth rate can scale more rapidly by expanding the sale of beauty products/makeup services and expanding retail locations directly or via a franchise model. The slight revenue decline in 2017 due to increasing membership sales will provide long-term recurring income. To improve operations, the Company closed several underperforming locations and adjusted its location criteria.

Distribution:

The Company delivers its services at 64 locations in US shopping malls.

Operational Strengths:

Its business model includes offering reasonably priced products and services that are easily accessible to consumers, including monthly memberships. Many of its loyal customers opt for the membership package since well-shaped brows require regular maintenance. Additionally, in 2017 they increased the number of locations where they offer add-on services: lashes, tinting and makeup. The income generated by these add-on services has been substantial. The Company provides a great opportunity for other beauty and personal grooming companies looking to expand their market penetration, or to serve as a cash flow generator for a buyer interested in entering these markets. Operating margins which exceed 12% are driven by a strong brand and social media visibility.

The Transaction:

The founders who control 100% of the Company’s ownership, plan to exit the brow threading retail activities post-acquisition, and focus on growing their makeup line. They will sign appropriate non-compete agreements and be available for a seamless transition.

Financial Summary
2018 Est by Seller 2017 2016
Revenue $17.2 mil $17 mil $18.4 mil
Adjusted EBITDA $4.4 mil $4.3 mil $4.4 mil

 

Other Highlights
Location Financials Management Team in Place Years in Business SIC Classification
USA Reviewed Yes 15+ 7231, 7299, 8999

Direct All Inquiries to:
Gottesman Company
Refer to:  S-2942-2 JPN
Tel: 212-330-8010     Fax: 646-434-4557
E-mail: office@gottesman-company.com

8/15/2018   

Gottesman Company – 200 East 71st Street – New York, NY 10021 www.Gottesman-Company.com

This document is confidential and contains proprietary information belonging to Gottesman Company. It is unlawful to reproduce or distribute without express written consent of Gottesman Company. No warranties or representations are made in connection with the information provided herein. Gottesman Company is an M&A Business Broker, whose mission is to locate opportunities and introduce participants.