Gross Revenue: $870,000
Lease Rate/Sq. Ft.: N/A
Full Service Marketing Agency (incuding B to B Telemarketing)
This St. Louis based business-to-business marketing agency is unique in that it also offers telemarketing services in addition to traditional marketing agency services. The firm is dedicated to creating integrated marketing campaigns with measurable results in terms of substantial sales/profit returns for clients.
As their Credentials Brochure states: “Anyone can create a print piece for direct marketing. Anyone can make telephone follow up calls. Anyone can create an ad or a website. Integrating that direct mail with telephone follow up, advertising, public relations, the internet, etc. – to create an accountable and measurable campaign – is where we come in.” Over the last 5 ½ years, the company has worked with 67 different clients. It currently has proposals outstanding to 13 clients and is nurturing 22 new prospective clients. The company does a phenomenal job of documenting it’s historical work with clients. It’s Credentials Brochure includes a list of 287 clients the company provided services to in the 21 years from 1989 and 2010. In 2015, 88% of the firm’s 26 clients they worked with were manufacturers, primarily in the chemical, building/construction, agricultural, industrial/commercial equipment and food industries. Their Credentials Brochure lists the following clients and industries served (cumulative since 1989): 39 clients in the agricultural industry; 16 clients that are associations; 6 clients in automotive-related industries; 37 clients in building/construction industries; 28 clients in chemical industries; 22 clients in consumer products industries; 16 clients in distribution or retail industries; 5 clients in electronic industries; 8 clients in environmental industries; 11 clients in financial industries; 20 clients in food and foodservice industries; 22 clients in health care industries; 27 clients in industrial equipment industries; 5 clients in information technology industries; 11 clients in insurance industries; 117 clients in manufacturing industries; 10 clients in packaging industries; 18 clients in professional services industries; 3 clients in real estate development industries; 31 clients in service industries; 6 clients in telecommunications industries, 6 clients in transportation industries; 7 clients in travel and hospitality industries; and 4 clients in utilities/government industries. In 2015, their clients were located in St. Louis, Louisville, Memphis, Kansas City, St. Joseph, Denver, Chicago, Nashville and Owensboro, KY. About 90% of the clients are within a 4 to 5 hour drive. Their services include: Strategic Planning and Marketing Consulting; Database Development and Marketing; Direct Response Advertising; Direct Marketing and Direct Response Programs; Consumer and Business-to-Business Sales Promotions; Sales Incentive Programs and Training Support; Telemarketing; Marketing Research; Lead Generation, Qualification, Presentation, and Tracking; Sales Support and Collateral Materials; New Product Introductions; Inquiry Lead Management; Package Design; Public Relations; Point-of-Sales Merchandising Materials; Trade Show Programs; Email Marketing; Web Site Development; Distributor and Dealer Sales Building Programs; Customer Newsletters and Enewsletters; Trade Advertising (creative development, media planning, buying & placement); Corporate ID Programs; and Video Production. The company is on the forefront of market testing, database marketing, sales lead management, sales support programs, and professional telemarketing - all designed to increase productivity and to maximize bottom-line profits for clients. The company has capacity to significantly increase telemarketing revenues as their facility has 20 telemarketing cubicles (40,000 hour annual calling capacity), but only used about 6,000 hours in 2015. They employ a full-time telemarketing supervisor who has been with company seven years and has developed proprietary customer call center reporting software. The company employs two account managers who have each been with the company for 17 years. In addition they have a few telemarketers on payroll. They have reliable outside contractors (some are ex-employees) to provide creative services on an as needed basis, and to supplement telemarketing needs. The owner’s time is primarily devoted to new business development and proposal writing for new and existing clients and strategic marketing services - not day-to-day project management. The company almost always invoices 50% of the estimated project in advance, along with subsequent progress billings, which results in “Client Prebillings”. They always maintain a nice backlog of work, and with the advance billing collections, there’s always a balance in Client Prebillings. From the seller’s proceeds of the sale, the amount in Client Prebillings on the company’s balance sheet will be escrowed for the benefit of the buyer. As work in progress from the backlog is completed, monies will be released from escrow to the buyer. This business has been pre-qualified for acquisition through the SBA 7a loan program. This would be a great acquisition for an entrepreneurial individual with marketing agency and selling experience. It would also be a fantastic strategic acquisition for an existing ad agency or marketing agency.
Real Estate: Leased
Building SF: N/A
Lease Expiration: N/A
Employees: 4 FT, 4 PT
Furniture, Fixtures, & Equipment (FF&E): Included in asking price
Facilities: The leased facility includes 20 telemarketing cubicles.
Competition: There are not many full-service business-to-business marketing agencies that have in-house telemarketing capabilities. The company’s facility has 20 telemarketing cubicles.
Growth & Expansion: With more than 300 clients over the years, there’s a huge opportunity to increase revenues with “warm” calls to existing and former clients. With the facility’s capacity for 40,000 telemarketing hours and the company only using about 6,000 hours in 2015, there’s enormous growth potential to increase revenues from telemarketing. The in-house telemarketing capabilities could also be used to promote the business itself with existing, past and new prospective clients.
Support & Training: The owner will provide training/support//transition consulting services for a reasonable period of time to ensure a seamless transfer of ownership.
Reason for Selling: Owner desires to retire
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