This Los Angeles based animation studio and marketing firm boasts those exact attributes that buyers typically seek in an acquisition - the company is semi-absentee operated, it is highly scalable, and it has extraordinarily high margins with a gross profit in the 60% range and a net profit in the 30% range.
This truly feel-good company boasts a convivial work environment in which creative artists contribute their special talents to make remarkable end-products that their clients promote vigorously once they have them. This promotion of the end product by the client naturally generates ongoing referrals for the company-something quite unique in the marketing industry.
Asking Price $1,350,000.
This firm operates out of 1,000 square foot office space that leases for $2,898 per month on a lease until January 2016 with a $20,000 buyout clause. The creative space resembles that of an innovative Silicon Valley technology company or a production studio. Given this remarkable set-up and an offshore production workforce, this firm is remarkably efficient and flexible, and theoretically could be conducted from anywhere. Since the firm collects 50% of its payment upfront, its primary costs are covered from the outset so there is virtually no working capital required.
Competition does exist for such an innovative concept, however, this company is considered to be the low cost leader. Of the leading 4 or 5 firms in the space globally (this company being one of them) this company's predictable and growing cash-flow stems from the fact that their product is of equal or better quality then the 4 or 5 other leading producers who charge between $8,000 and $50,000 for a product that is indiscernible to what they produce for under $4,000.
There are no shortages of ways to grow this bustling creative studio. Since the firm has enjoyed such high organic growth rates, they have yet to exploiting the plethora of additional sales and marketing growth opportunities available.