• Landline:8138982350
  • Email:vanderschuur@benchmarkcorporate.com
enquire now

Valpak Franchise Offering Local Direct Mail Marketing and Digital Marketing Solutions

  • Posted on
  • 73
Specifications
EBITDA1,193,000
Revenue13,851,000
Client CodeVEN2247
EBITDA Range 1M-1.5M
Revenue Range 10M-25M
Sector Print,-Publishing,-Advertising-and-Media
Region Midwest-US
Deal Structure Open
Headquarters-
Description

The company is a franchise specializing in local direct marketing and digital marketing solutions in the Mid-West. The company offers local businesses with a variety of print marketing options such as single-panel coupons, large print formats, and cardstock and loyalty cards. In addition, they offer a variety of digital marketing solutions such as website development, search engine optimization (SEO), search engine marketing, power listings, social media marketing, and the companies highly optimized business profile pages.

 

Key aspects

  • Operating in growth mode; revenues and adjusted EBITDA have grown at a compound annual rate of 28.7% and 73.9%, respectively from 2015 through 2017
  • Consistently in the top five in production year-over-year across the franchisor’s network
  • Access to corporate´s proprietary accounting and performance tracking technology system that gives customers true exposure to their return on investment
  • Over 40 years of best practices in direct mail advertising
  • Second oldest franchisee in the 50-year-old network
  • Approved Master Service Agreement (MSA) with large financial institution to mail across the United States
  • Flagship product is mailed to over 540K homes each month
  • Won every major award offered by the franchisor
  • Recurring revenue model. Most customers are under a six to nine month contract participating in consecutive mailing orders
  • 100+ global partners including Google, Apple Maps, Bing, Yahoo,Facebook, and Yelp
  • The franchisor is ranked #128 in the 2018 Entrepreneur Franchise

 

Opportunities

  • Increase sales and marketing efforts to expand client base and increase revenue
  • Expand services into different geographic locations and establish other franchises
  • Utilize the new ownership group who is infusing money into technology and focusing on the digital sector of the business
  • Hire experienced sales representative to grow the digital division

 

Headquartered

  • Mid-West

 

Current markets

  • The company services hundreds of small to large corporations in the Mid-West. It serves various industries such as professional services, home services, dining, entertainment, retail, automotive, health, fitness and beauty, general services, medical services, and online marketplaces among others.

 

Real estate

  • The company operates from two office spaces: 1,200 sq. ft. on the first floor and 3,500 sq. ft. on the second floor of the building. The facility is a total of 8,000 sq. ft. and is affiliate-owned. The real estate is not included in the sale but the owner is open to rent options. There is room to grow in the current facility.

 

 Shareholder/owner objectives

  • The company is owned by two individuals, one of which is not active in the day-to-day operations. The active owner is willing to stay on for a transition period to ensure a smooth transfer of ownership.

Key Indicators:

Year End

05/31/2018
TTM
$’000

12/31/2017
Compiled
$’000
12/31/2016
Compiled
$’000
12/31/2015
Compiled
$’000
Revenue 13,851 13,601 11,438 8,216
Gross Profit 1,907 2,445 1,792 1,184
Adj. EBITDA* 1,193 1,731 1,112 572

* Profit before interest, tax, depreciation and amortization (non-cash items)