Background
- Founded in 1979, Alros Label Company (now rebranded as Cover Label) is a Los Angeles-based manufacturer of custom printed pressure sensitive labels. The owners, who were second generation owners of this family business, lacked a third generation to take over the business.
- As the owners approached retirement age, they elected to sell the business and commercial property and enter retirement.
Goals & Strategy
- As the company was relatively simple to operate and would likely appeal to a large buyer pool, Kinected marketed the businesses to both individuals and strategic buyers, generating 50+ signed NDAs within two weeks of going to market and eight offers within the first month after commencing marketing efforts.
- Kinected’s marketing materials highlighted the company’s growth potential through equipment modernization, eCommerce and web development, as well as targeting new growth industries.
- Owners were seeking a Buyer who would grow the business over the long term and would preserve relationships with long-term employees and customers.
Results
- After a high-demand auction process, Alros Label was sold to a private buyer who purchased the business and property in an all-cash transaction, valuing the business at premium to the initial Target Price.
- Buyer implemented an expansion plan that included equipment modernization, a new e-commerce web site, offering additional services such as in-house creative design, as well as enhanced sales process.
- The transaction closed in less than 120 days after the time the business went to market.
