Specialty Retailer Looking to Exit Business

Challenge

A $5MM specialty retailer with a well-recognized but fading regional brand, was generating losses on declining sales. Owner wanted to increase profitability and cash flow, and sell the business at a high value based on the brand.

Solution

KMF Consulting reviewed historical financial performance and processes, visited facilities, interviewed managers and prepared an assessment of operations including internet sales, and profitability by store. Prepared a baseline valuation of the business and made recommendations to streamline systems and decrease overhead. Engaged an investment banker specializing in retail businesses which identified a qualified buyer. The buyer recognized the value of the brand to value the business on a multiple of sales and offered a buy-out in excess of $10MM.