Doug Sunny
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MELISSA & DOUG Sunny Patch SEASIDE SIDEKICKS COOKIE SET $29.99 |
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Melissa and Doug Sunny Patch Tootin Turtle Sprinkler New Summer Fun Toy $14.50 |
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Melissa and Doug Sunny Patch Flex Octopus Chair for Kids Item# 6418 $16.99 |
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Melissa and Doug Sunny Patch Clicker Crab Chair Chair for Kids Item# 6417 $16.99 |
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Melissa and Doug Sunny Patch Spark Shark Floating Target Game # 6661 Basketball $19.99 |
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Melissa and Doug Sunny Patch Spark Shark Kickboard # 6650 Childs Kickboard Float $5.99 |
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Melissa and Doug Sunny Patch Louie Lobster Claw Catcher # 6669 $10.99 |
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Melissa and Doug Sunny Patch Tootle Turtle Dump Truck # 6272 NWT $12.75 |
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Melissa and Doug Sunny Patch Scootin Turtle Cement Mixer # 6271 NWT $12.75 |
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Melissa & Doug Sunny Bright Sprinkler Outdoor Toy Kids $20.00 |
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Melissa and Doug Sunny Patch Seaside Sidekicks Ring Cake Set 6460 Sand Molds $12.75 |
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Melissa and Doug Sunny Patch Tootle Turtle Bubble Bucket NWT 6141 Bubbles $10.99 |
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Melissa and Doug Sunny Patch Bollie Bubble Bucket NWT 6140 Bubbles Ladybug $10.99 |
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Melissa and Doug Sunny Patch Tootle Turtle Bubble Set NWT 6161 HUGE BUBBLES! $8.49 |
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Melissa and Doug Sunny Patch Bella Butterfly Bubble Set NWT 6155 HUGE BUBBLES! $8.49 |
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Melissa and Doug Sunny Patch Bollie Bubble Set NWT 6162 HUGE BUBBLES! $8.49 |
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Melissa and Doug Sunny Patch Happy Giddy Binoculars NWT 6081 $5.99 |
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Water Summer Melissa & Doug Sunny Patch Tootin Turtle Sprinkler Fun Toys New $86.45 |
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Water Summer Melissa & Doug Sunny Patch TM Blossom Bright Watering Can Fun Toys $13.94 |
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Melissa and Doug Sunny Patch Bixie Butterfly Binoculars NWT 6080 $5.99 |
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Melissa and Doug Sunny Patch Happy Giddy Trowel 6253 New with Tags Kids Shovel $3.49 |
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Melissa and Doug Sunny Patch Blossom Bright Trowel 6254 New with Tags Kid Shovel $3.49 |
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Melissa and Doug SUNNY PATCH Seaside Sidekicks Sand Cupcake Set Item # 6431 $9.99 |
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Melissa and Doug Sunny Patch Blossom Bright Trowel and Rake 6254 and 6239 NWT $9.99 |
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Melissa and Doug Sunny Patch Happy Giddy Trowel and Rake 6253 and 6238 NWT $9.99 |
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Melissa and Doug Sunny Patch Grub Scouts Sprinkler 6249 Water Sprinkler Nib $14.99 |
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Melissa and Doug Sunny Patch Blossom Bright Sprinkler 6251 Water Sprinkler NIB $14.99 |
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Melissa and Doug Sunny Patch Spark Shark Toss and Catch Pool Play 6658 NIB $12.75 |
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Melissa & Doug Sunny Patch Blossom Bright Kids Outdoor Lawn Play Water Sprinkler $24.00 |
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Mellisa n Doug 6030 9.5″x 9.5″x 9″Sunny Patch TM Froggy Kickball $21.79 |
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Water Summer Melissa & Doug Sunny Patch Tootin Turtle Sprinkler Fun Toys New $71.07 |
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Water Summer Melissa & Doug Sunny Patch TM Blossom Bright Watering Can Fun Toys $21.42 |
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Melissa and Doug Sunny Patch # 6291 Bella Butterfly Gloves $6.18 |
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Melissa and Doug Sunny Patch Froggy Toss and Grip $9.95 |
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Melissa and Doug Sunny Patch Tootle Turtle Racquet and Ball Set $12.99 |
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Melissa and Doug Sunny Patch # 6292 Bee Good to Bugs Good Gripping Gloves $6.28 |
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Melissa and Doug Sunny Patch # 6400 Clicker Crab Pail and Shovel $9.76 |
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Melissa and Doug Sunny Patch # 6401 Clicker Crab Shovel $8.48 |
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Melissa and Doug Sunny Patch # 6402 Cinco Starfish Collapsible Bucket $9.47 |
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Melissa and Doug Sunny Patch # 6405 Finney Fish Pail with Removeable Spout $11.60 |
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Melissa and Doug Sunny Patch # 6406 Cinco Starfish Scoop $4.99 |
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Melissa and Doug Sunny Patch Happy Giddy Croquet Set-Outdoor Lawn Game $49.78 |
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Melissa and Doug Sunny Patch # 6293 Molly and Bollie Good Gripping Gloves $6.24 |
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Melissa and Doug Sunny Patch # 6407 Flex Octopus Cultivator $4.99 |
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Melissa and Doug Sunny Patch # 6408 Speck Seahorse Sifter $5.03 |
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Melissa & Doug Sunny Patch Mollie Sleeping Bag NEW!! $28.98 |
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Melissa and Doug Mollie Flashlight Sunny Patch NEW $9.74 |
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MOMBO SNAKE BUBBLE BUDDY – Sunny Patch – Fun! Blower Kit Set Lot Melissa & Doug $3.99 |
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Melissa & Doug Sunny Patch Sand Cupcake 12 pc Set NEW $14.99 |
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New Melissa and Doug Sunny Patch Baseball and Bat Set $9.99 |
Maximize Your Potential as a Buyer
Your resume, not your checkbook, should determine what size business you can own and operate. A case study approach will explain how to buy a much bigger company than you can finance on Your Own.
You’ve been very successful managing a company or division with full P&L responsibility and produced millions of dollars of profits. You’ve been well compensated and put some capital together. You’re intrigued with the idea of becoming a business owner. You like the idea of being captain of your own ship and also want to create wealth for yourself and your family.
What kind and size of business should you buy? The best answer may be; the same size business you’ve been running for others. If you’ve been running a $200 Million dollar division, operating a very small company, may not be what you can do best or enjoy the most. But is it possible to buy a $200 Million dollar business when you’ve got a million dollars or less of your own to invest?
Very often, you can. Professional investors are very enthusiastic about backing a CEO with the right industry experience; especially if you’re prepared to invest your own capital along with theirs. Furthermore the ownership that they’ll allow you to earn by operating the business profitably will typically be much greater than the equity which you buy at the outset.
Let’s consider an example. Carol is a division VP of a large manufacturing company. She has been involved in her industry for over 15 years. The division which she operates generates revenues of $230 million and contributes $30 million to the pre-tax profits of the corporation. Carol has built a war chest of $800,000 with which she would like to make an acquisition.
Through her industry network, Carol learns that the owner of one another company in the same industry, Valence Inc, is planning to retire and wants to sell the business. She knows the company and is confident that she could operate and grow it successfully. Valence has revenues of $165 million and pre-tax profit of $12 million. She believes that at the helm of Valence, she could increase both revenue and profit margins.
Carol contacts the owner of Valence, Doug Miller and learns that he has no heirs in the business. While the current management team is willing to stay on, Doug doesn’t believe that any of them is ready to run the business. Doug has hired an investment banking firm who is preparing to put Valence on the market.
Carol remembers attending a seminar put on by Capital Results which specializes in working with entrepreneurial business buyers. After some initial meetings, Carol hires Capital Results to help her acquire the company. Capital Results will locate the investors and will also negotiate on Carol’s behalf to maximize her opportunity in the deal.
Capital Results introduces Carol to several PE groups which have the potential to match up with Carol’s interest. Carol is surprised to learn that there are hundreds of funds with a combined investment capacity measured in hundreds of billions of dollars. CR chooses a few funds whose interests correspond with Carol and the Valence deal based on industry, geography, deal size and several other considerations. Carol feels very comfortable with RMW Capital Partners. RMW understands the industry and Carol likes their approach. RMW appears enthusiastic about Carol’s experience and her plan for Valence. Carol and RMW notify Doug’s investment banker that they want to look at the company.
Valence’s performance has been reasonably steady for the last few years. EBITDA for the previous year was $15 Million. Carol and Valence know that companies like Valence have been selling lately for five times EBITDA. They expect the other bidders to come in at around $75 MM. Carol is very confident that she can quickly improve Valence’s profitability by $2MM by removing some inefficiencies. She is also confident that she can grow the business by at least 8% each year. Based on these projections, the partners at RMW are confident that they can afford to bid $80MM. This becomes the winning bid.
Carol and her new partners have extensively modeled the projected future performance. Based on their calculations, they want to borrow 60% of the purchase price and invest 40% as equity capital. Therefore, the equity required for the acquisition is $32MM. Carol’s $800K represents 2.5%. The remainder is purchased by RMW. $40MM in debt financing will be provided by Junior and Senior lenders. Mr. Miller is taking a note for $8MM. The debt will be paid off using the profits of the company over a four year period.
RMW sets up an option pool whereby Carol and certain key managers can acquire up to 15% of the equity in the company at the same price being paid to Mr. Miller. Carol as CEO will get 60% of these options. Carol gets a salary and bonus package which is about 95% of what she was making in her old job. She is willing to defer some income in order to create wealth down the road.
Carol and her team make their numbers. They improve profit margins and grow the company by 8% per year. EBITDA was 9% of profits during Mr. Miller’s last year. Carol improves this margin to 12%. There are enough profits to pay off all the debt in four years, so at the end of that period, the company is effectively debt free. At the end of 5 years, EBITDA is 29 million on sales of $242 million.
A strategic buyer offers to purchase Valance for 5 times EBITDA or $145 million. The bank debt has been paid off so while the price of the company has almost doubled, the value of the equity has gone up 450%.
Carol’s 2.5% is now worth $3.6 MM. She exercises her options to acquire 9% of the company (60% of the 15% option pool). The options cost her about 2.9MM and are worth over $13MM. Carol’s makes over $10MM on her options.
It’s very important to note that while the gain on Carol’s initial investment was excellent, the great majority of her gain came from the options. This is quite typical. Investors want to see the top executive investing their own money as proof of their commitment to and belief in the business. However they are willing to allow the executive to earn considerably more by achieving results. It’s also worth noting that a few percentage points of cost reduction and 8% revenue growth result in a great return for the investors as well. After giving management the option pool, the investors receive better that a 40% ROI on their investment.
While lying on a sunny beach, a few months after the closing, Carol muses that she could have achieved similar results for her old employer. She would have been well paid in salary and bonuses. She might have put away another million or so by now. Then she laughs and rolls over to get some sun on the other side.
The numbers used in this case study are quite realistic for situations of this type. The real value is created by Carol’s ability to grow the business steadily while improving profitability. Her skills are a perfect match with the Leveraged Buyout (LBO) scenario illustrated here.
Carol had the courage to leave the corporate nest and become an entrepreneur. She found the right advisor and the right partners to help her realize her goals. Finally, she kept her eye on the ball until the exit was achieved.
About the Author
Michael B. Ribet is a partner at Capital Results (http://www.capitalresults.net), a Chicago investment bank which assists “bankable” entrepreneurs in acquiring large companies in conjunction with Private Equity groups. He can be reached at (312) 541-6232 or mike@capitalresults.net.
Do You Remember Face?
Do you remember face from nick jr.???
http://www.youtube.com/watch?v=iEcG24evCTw&feature=related
“right here on nick jr. boop boo booop”
and what about gullah gullah island???
“so come and lets play together in the bright sunny weather lets all go to gullah gullah island…”
or what about Doug:
http://www.youtube.com/watch?v=5fXDlzHuZPc&feature=related
–oohhh porkchop 
ahh what ever happened to those great shows??
not sure if face was that great tho..haha
i forgot about face
