Website Closers® presents a Retail and Promotions Marketing Agency specializing in the Hispanic market. It has become recognized for its wide range of offerings, such as retail merchandising, in-store product displays, demonstrations, mobile tours, analytics, and digital and creative services. The agency services for its clients a wide retail base, from independents to major retailers. The agency is unique in that it goes beyond creating promotional plans by also implementing them with its own committed field team.
The staff embodies the essence of Hispanic consumers in their professional and personal lives, leveraging this distinct perspective to benefit their clients and enabling brands to engage effectively with this influential consumer group. With the Hispanic demographic contributing to nearly half of the US population growth and possessing a collective purchasing power of $1.7 trillion, it represents a pivotal market segment. To effectively reach this audience, the team diligently focuses on understanding their distinct desires, requirements, language preferences, and current trends.
Business Broker Takeaway
Our analysis of this business shows that the value propositions are strong for a buyer looking to enter or expand into this space. We are excited about this business for three important reasons:
- The agency stands out in the industry due to its unique offering of a comprehensive suite of in-house services. Rather than specializing solely in creating or executing retail merchandising or promotional plans, this company excels in both aspects, setting it apart from competitors.
- The core of the business operates through retainer agreements or ongoing contracts, supplemented by a consistent flow of one-time projects. Contracts are typically billed monthly, spanning an average duration of 12 months, with a value ranging between $1 million and $3 million. The agency boasts a devoted client base, with all existing clients having been with them for over six years, a testament to the exceptional results and high satisfaction levels achieved.
- Leadership operates remotely, optimizing efficiency and flexibility, while field staff operate within the stores, eliminating the necessity for traditional office spaces.
Services
The comprehensive suite of services offered by the agency includes the following:
- Retail Merchandising
- In-Store Activations (Demos)
- Community Event Activations
- Mobile Tours
- Full Scope Social Media & Digital Services
- Promotional Media Buying
- Development & Execution of Marketing Promotions
- Photo & Video Production
- Data Analytics
In addition to these extensive in-house offerings, management has built strong collaborative relationships with several creative agencies in Mexico.
Customer Base & Revenue Trends
The primary client base consists of CPG brands aiming to engage with Hispanic consumers across various levels of acculturation. The team has collaborated with a spectrum of retailers, ranging from Hispanic independents to major market players such as Walmart, Home Depot, and CVS.
The business model encompasses both core and seasonal aspects. The core entails clients on retainer with an extensive scope of work, where annual initiatives are implemented. They contribute to the majority of the company’s revenue.
Additionally, the agency is contracted by the same core clients, as well as others, for seasonal projects. Doing so leads to increased activity during significant general holidays, Hispanic cultural celebrations, and the summer season.
Workforce & Transition
The owner works as CEO, overseeing 58 leadership and field staff employees. She is willing to stay onboard in a minority equity position or for an extended consultancy period to ensure continuity through transition. The only necessity is more freedom in her schedule.
Similarly, the full-time leadership team is willing to remain post-acquisition. The agency maintains a roster of between 20 and 40 seasonal workers that support as necessary when there is an uptake of activity. These individuals typically work from March through October. The business is currently in a growth mode and is actively hiring more field staff, supervisors, and merchandisers.
A prospective buyer should ideally possess a range of competencies, though bilingualism is not a prerequisite. These include experience with CPG brands in senior marketing or management roles, expertise in shopper marketing, or possibly a background in senior leadership within the retail sector, agency or grocery chain setting.
