Fast Growing Apparel Company Looking to Partner with a SearchFunder

January 20, 2021

by a searcher from Simon Fraser University in Vancouver, BC, Canada

Hi everyone,

We have US-based apparel company that we grew from ~$80k a mo in Nov 2018 to $1M+ a month by May of###-###-#### It's doing around $750k a month right now. The original founders are in-place but the asset is too big for them to manage and we do not have the internal bandwidth to tackle re-hiring/building out the co more. To be frank it's one of our smaller holdings so allocating more time into it doesn't make sense.

What we'd like to do is partner with a searcher who can put real skin in the game. Buy out the original founders, provide us with some level of liquidity, etc... We can be very flexible for the right searcher with real experience in the industry.

The deal has a bit of hair on it, but nothing overly complex. Please reach out via email to redacted and we can take things from there. The right partner will have substantial DTC or eCommerce experience + work history in apparel.

Reply by a searcher
from Simon Fraser University in Vancouver, BC, Canada

Can't edit - but really want to stress that we're willing to put our money where our mouth is by rolling a chunk of equity into the new deal. Going vertical with supply chain for example would yield huge COGS wins. A lot of these projects are already mapped out/ready to go. Our internal team currently handles their marketing and would be able to for the new operator too!

Bankers/consultants/advisors, do not email me please.

Reply by a searcher
from Northern Alberta Institute of Technology in Edmonton, AB, Canada

I think most searchers are (mostly) using debt to finance their transaction, and in my experience, high growth companies aren't the best LBO candidates as the free cash flow goes back into operations (working cap, inventory, ar/ap). How much free cash flow is available and is there consistent distribution?

+1 more reply.

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