Business DescriptionThe company is a well-established company of 15 years and is the pioneer and market leader in the brow threading niche of the beauty industry, currently up for sale to qualified buyers exclusively through Raincatcher. With an exceptionally high (66+ percent) gross margin, monthly income stream through membership subscriptions, add-on revenue sources, and potential for rapid growth, the company is the ideal opportunity for a strategic or investment buyer to enjoy lucrative cash flow and a rapid return on their investment. The beauty market generates more than $65 billion annually. It is expected to continue gaining momentum due to economic growth and consumer spending. The industry has even demonstrated growth during times of economic downturn, such as in 2008. The company is the pioneer of the brow shaping industry. Its founder, who pioneered the market in the U.S., has a passion for helping women, especially female immigrants. Through the company, the founder has taught numerous women how to perform eyebrow threading so that they could use this skill to create their own income and independence. This desire to empower other women has contributed immensely to the success of the company. Since its inception, the company has grown to 64 different locations in shopping malls throughout the. 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. The Company experienced a slight setback in 2017 due to increase in membership sales which initially show a dip in revenue but provide reoccurring income in the long term as a result, 2017 financials show a decrease in revenue. The company has also closed a few underperforming locations and adjusted their location criteria. Additionally, they have increased the number of locations offering add-on services like lashes, tinting and makeup for 2017. The income generated by the company’s add-on services has been substantial. The company provides a great opportunity for other beauty companies looking to expand their current market, or as a cash flow company for a buyer interested in entering the beauty products and service industry. Key considerations:
- An established beauty company with a proven system and a recognizable brand that pioneered the brow-shaping industry in 2003
- Gross margins consistently above 66 percent, among the highest to be found in any mall or other retail environment
- +12 percent operating income
- Steady, growth rate that can scale even more rapidly by scaling up the sale of beauty products and makeup services and expanding retail locations using the franchise model
- Consistent recurring revenue from customer memberships which provides a solid source of income revenue
- A successful, transferable culture that focuses on “clienteling” – being the best at customer education, demonstration, sampling and training for hot beauty trends. According to the latest market research two main factors driving the beauty industry are “rising consumer incomes” and “changing lifestyles"
- Reap the benefits of a repeat business which provides steady ongoing and increasing monthly revenue that can easily scale.
- A company with a strong brand and social media presence.
|Business||N/A||Asking Price||$19 million|
|Location||Various||Real Estate||No owned real estate|
|Yrs In Business||15 years||FF&E||$ 5.6 Million (cost basis value)|
|Hours||flexible||Ownership||LLC, members owns 100%|
|Facilities||64 mall leased locations (2 franchise locations)||Reason for Sale||Owners pursuing new ventures growing their new cosmetic line.|