Ecommerce brandNov 12
Wooden Instrument Accessories Brand for School Music Programs and Guitar Owners
Three American woodworking shops build its wooden accessories for school music programs and guitar owners, and more than 100 music dealers sell them.
- Ask
- $1.38M
- Profit
- $419K
- Multiple
- 3.3x
- Ask
- $1.38M
- Revenue
- $1.64M
- Profit
- $419K
- Margin
- 26%
- Multiple
- 3.3x
- Age
- ~24 yrs (2002)
How it rates
ValuationFair
Similar ecommerce brands we've tracked mostly ask 1.4–3.4x profit, or 1.6–3.9x adjusted for its long, steady record; this one asks 3.3x.
Durability
24 years old, sold by over 100 dealers and made by 3 outside shops, with mostly repeat orders.
Hands-off
Three part-time staff work from home offices, but the owner's hours and role in dealer relationships aren't stated.
Why it's interesting
- More than half of all orders are repeat orders, and school programs make up about 65% of sales.
- Over 100 dealers carry the products, including several of the largest instrument retailers in the U.S. and Canada.
- School sales peak before the late-summer term and guitar sales around the holidays, so revenue has two busy seasons.
- Three U.S. woodworking shops make the products, two of them long-standing partners, and the company owns no factory, equipment or real estate.
What to watch
- Almost all sales likely go through dealers, and with several large chains among them, a few accounts may carry much of the revenue. The listing gives no split.
- Only one year of figures is given, with no trend and no breakdown of how much comes from newer products versus the long-running catalog.
- The school line likely means paying the shops well before dealers pay, so the late-summer rush may tie up a lot of cash. Whether inventory is included is not stated.
- At about 3.3 times profit, the ask sits near the top of the usual range for similar product brands.
Ask the seller
- What share of revenue came from the five largest dealers last year?
- What were revenue and profit in each of the last three years, and how much came from products added recently?
- How many hours a week does the owner work, and who manages the dealer and shop relationships?
Growth plays
- Pitch band and orchestra directors directly at state music-educator conferences, so they ask their dealers' road reps for the products.
- If the guitar line isn't already sold direct, list it on its own store and Amazon ahead of the holiday gift season.
- Sign more of the regional music dealers that call on schools, using the large national retailers as references.
Nov 13Added to Acumen Wire