Clothing Concept Design & Screen Printing – High Growth w/Significant Potential

San Diego, CA (San Diego County)


Asking 
$1,650,000
Gross Revenue 
$2,767,324
Potential Cash Flow 
$508,329

This greater San Diego based clothing concept development, design and screen printing company is a high growth venture with significant potential. This apparel company boasts several highly attractive core-competencies in the branding, design and production aspects of their business. Rather than being a private label manufacturer, this enterprise partners with its clients and becomes integrated into their operations to co-create value as an overall solution provider. From initial creative brainstorming following market research and brand identity formulation, to concept implementation, packaging, display, marketing and even Amazon-style fulfillment they provide their loyal customers an end-to-end solution that not only meets but typically exceeds their expectations. The firm has in-house screen printing capability and has a strong partner network in place for cut and sew, sublimation and embroidery. The company does not limit itself with in-house design staff. Instead they have curated a 10-12 person freelance design team that is able to provide a broader skill set as well as a wider pool of creative ideas. They manage 15k weekly prints in-house, but are able to scale up as necessary. Although shirts dominate production, their product knowledge and design and production expertise include t-shirts, polos, sportswear, hats and more.

Inventory 
$10,000 - $100,000 at cost at close

Accounts Receivable Included in Asking
No

Facilities

This company operates out of a spacious 4,900 square foot facility with two offices, a showroom and a large production area. With production resources on-site, they are able to ensure quality control. All of the growing business’s furniture, fixtures, equipment and goodwill will be included in the sale. A variable amount of production (typically blanks) and component inventory, which ranges from $10k to $100k, will be sold at cost at close in addition to asking price.


Competition

While competition exists at various levels, this company is unique in that they are a full-service solutions provider. They are engaged from design to implementation, so they are not simply a third party manufacturer that focuses on one or two products or skus, nor are they a marketing or design firm. As a result, they compete at different levels with others that traditionally occupy different value chain segments. This full service approach is part of their value proposition. It is also how they are able to grow with clients, not compete solely on a price basis with others in what is often considered a price sensitive industry, and help ensure loyal long-term customer relationships. Due to the nature of their close customer relationships, they have annual client contracts with key clients.


Growth & Expansion

New operators may take this opportunity in any number of directions. They will likely wish to continue to develop and grow with the existing client base, but will invariably choose to diversify into production for other customers with similar needs. A tremendous savings opportunity also exits on the cost side of the business. The owners do not have an operational background. The production facility has grown with the client base but significant efficiencies and economies of scale stand to be achieved if it is migrated to a large scale facility in the U.S. or just south of the border, only 50 miles away. They estimate that they have a 25% cost disadvantage.


Support & Training

4 Weeks at 20 hrs/wk


Reason for Selling

Personal


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