Listing ID: 3613 Last Refreshed: 07/05/2019 Total Views: 8691
The company whose shares are being divested is the dream of any business start up.
Founded in 2013, the company was started as a 50/50 joint venture between 2 partners to test the market for an innovative new product. One partner is passive, owns an existing distribution company, and provided a ready-made platform to launch the product and incubate the new business. The other partner is the CEO, and is a newcomer, with the time and energy to grow the business aggressively.
The business opportunity turned out to be a gold mine, and the company was profitable and had positive cash flow within the 1st month of operations. Sales skyrocketed rapidly, and by 2016 the company hit a revenue of almost $5 million, with a net profit of almost 15%. We are talking about NET profit, after deducting all cost of goods, rentals, salaries, bonuses and director fees.
It is now one of the market leaders in the industry, occupying a very comfortable niche with a very well-known brand. Most of the sales are generated from the website, with a healthy portion coming in from various dealers as well. The market it operates in is still going to be one of the fastest growing industries in Singapore, despite the poor economic outlook. Overseas sales are growing as well and also making a healthy profit.
The passive partner is now looking to divest his 50% share of the company to pursue other business ventures. The company has been hugely successful and has great prospects, but it grew big very quickly, so many back-end processes such as inventory control, human resource, financial control etc. still need to be improved.
A most suitable buyer would be one with good organisation skills and financial prudence, able to help the CEO build a stronger and more organised company, and bring the business to the next level.
Looking for serious buyers only. Please provide an indicative offer when you make contact, keeping in mind that this is only 50% of the company, so your offer should only be 50% of your valuation of the company.