Field Notes: Women’s Shapewear & Medical Compression Garment Brand

Founded in 2013, the company is a leader in women’s shapewear, compression, medical post-op, and postpartum garments.

In the heart of Tampa, Florida — a medical compression and women’s shapewear garment brand is on the block. Launched in 2013, this isn’t just any brand; it looks like a textbook example of what happens when a company not only reads the market but writes its own playbook. And the aspiring entrepreneur through acquisition (ETA) will certainly be able to ride the demographic wave on these products as well.

The brand has a strong market presence in the women’s shapewear and medical compression garment industry, evidenced by their frequent appearance as an Amazon best seller, showcasing the brand’s market visibility and consumer appeal.

The brand’s financial robustness, $48.8 million gross and a cool $5.8 million EBITDA, is nothing to sneeze at. Add to it the diverse revenue streams; a business model split 60% wholesale and 40% retail. But it’s the repurchase rates that catch the eye — 70% wholesale and 31% retail.

Operational efficiency is no joke either — with 95% of operations, including logistics and app development, managed by a 175-strong in-house team. This indicates a company that doesn’t just run; it sprints with controlled processes and efficiency.

The astute ETA will want to consider marketing trends and assess the evolving shapewear and medical compression garment industry, especially with a $27.7 million asking price. I’d argue demographics are in your favor, but the brand’s reliance on Amazon for 67% of retail sales is something to keep in mind. The involvement of five shareholders knee-deep in operations needs to be considered carefully as well. What happens when they leave? Who’s driving the bus? Leadership transition isn’t just important; it’s crucial to continued success.

In the end, this acquisition, while maybe a bit at the high-end for the typical ETA, appears to have the market position, financial performance, and operational strength of a winner. You’ll need to understand the dance of the market, ensure leadership continuity and long-term sustainability; it’s a strategic move in the chess game that is entrepreneurship through acquisition.

Business Overview

• Established Brand: Founded in 2013, this company has grown into a leader in its niche market, offering women’s shapewear, compression, medical post-op, and postpartum garments.
• Revenue Streams: The business has a balanced revenue model with 60% coming from wholesale (with a high 70% repeat purchase rate) and 40% from retail sales (31% repeat purchases).
• Strong Financials: The company boasts impressive financials, with a gross revenue of $48.8 million and an EBITDA of $5.8 million.

Market Position and Operations

• Market Presence: The brand has a significant presence, being a frequent best seller on Amazon, accounting for 67% of its retail sales. The company’s Average Order Value (AOV) is $95 for retail and $900 for wholesale.
• Digital Marketing and Sales Channels: The brand employs a comprehensive digital marketing strategy across various channels, including SEO, PPC, social media ads, and influencer partnerships.
• In-House Operations: With 95% of operations, including logistics and app development, performed in-house and a strong team of approximately 175 employees, the brand has established efficient and controlled operational processes.

Expansion and Growth Potential

• Consistent Sales & Seasonal Peaks: The business enjoys consistent sales throughout the year with a surge during March and April, aligning with the peak demand for cosmetic and plastic surgeries.
• Growth Opportunities: The brand’s expansion into wholesale, alongside its strong retail presence, provides avenues for further growth.

Management and Ownership

• Experienced Management: The brand benefits from experienced department heads, each averaging 6 years with the company, contributing to a low turnover rate among key personnel.
• Shareholder Involvement: The involvement of five shareholders in various operational roles, including CEO, CFO, and heads of different departments, underscores strong leadership and a dedicated management team.

Considerations for Potential Buyers

• Valuation Justification: Prospective buyers need to evaluate the asking price in light of the company’s financial performance, market position, and growth potential.
• Future Market Trends: Understanding the evolving trends in women’s shapewear and medical compression garments, and the potential impact on future business performance is crucial.
• Transition and Continuity: Ensuring a smooth transition, especially considering the key roles played by current shareholders, will be vital for continued success.

About: Silverwave Field Notes combs through and analyzes thousands of businesses available for sale that may be of interest to entrepreneurs looking to acquire an existing business. We are not affiliated with the business listed for sale unless otherwise disclosed. The business highlighted above is represented by WebsiteClosers.com