PR & Event Firm with Political Edge
Marketing and strategic development efforts on the part of this PR & event agency have raised $175M for candidates and non-profits since 2005. With a focus on politics, this is a great niche add-on for a marketing or publishing company interested in public sector work. Located in Austin, Texas, clients are local, statewide and national non-profits and public organizations requiring assistance with PR, campaigns, fundraising and more. With a strong background in issue campaigns, some of the agency’s notable past clients include national and state Senate races, children’s and women’s policy initiatives, and local public programs. The agency also holds contracts with a few Texas cities for elections, community organizing, small business program advocacy and more.
An Agency President heads development and communication strategy for clients. Also on staff are a Marketing Director, an Account Manager, and a Human Resources Manager. The seller manages employees and handles “big picture” strategy, and will transition for 3 – 6 months, if desired.
Growth exists in landing more city contracts. A political background, or some experience in political PR and marketing, will be a huge benefit to any buyer wanting to add more public sector work to the roster. A buyer could also choose to provide more event planning for non-profits, especially in fundraising and development. This agency presents a great opportunity to any marketing or publishing organization wanting a policy arm, and with a great staff in place, a buyer would be receiving a well-established company with an unparalleled portfolio.
- Years in Business: 13
- Location: Austin, Texas
- Service Area: Nationwide, with 80% in Texas
- Clients Base: Small corporate, non-profit and public sector for local and national entities focused on political and issue-based results.
- Services: Public relations, advocacy campaigns, strategic planning, event planning, development and fundraising, public meetings and stakeholder outreach
- Marketing – 30%
- Event Planning – 30%
- Public Relations – 30%
- Board recruitment – 10%
- Employees: 4 (Agency President, Marketing Director, Account Manager, Office Manager)
- Growth Opportunities: City contracts are a huge growth opportunity. More event planning for non-profits.
- List Price: $208,000
- Gross Sales:
- 2018: $287,040 Annualized
- 2017: $299,052
- 2016: $328,958
- 2015: $236,259
- 2014: $272,181
- Cash Flow:
- 2018: $147,132
- 2017: $81,442
- 2016: $68,769
- 2015: $51,152
- 2014: $84,076
- Intangible Assets: Niche market, outstanding reputation, strong client base
- Contracts: Multiple, year-long municipal contracts for events and PR. Several non-profit multi-month development, PR and event planning contracts. One corporate PR contract.
- Profit Margin: 25%
- Assets Included in Purchase:
Cash Flow Analysis
|Description of Financial Statement||P&L Statement||P&L Statement||Tax Return||Tax Return||Tax Return||Tax Return||Notes|
|Net Income Shown on Financial Statement||$35,749||$79,271||$32,521||$49,251||$80,924||$42,494|
|Interest||$198||$438||$854||$564||$1,784||$575||Non-onward going expense|
|Contributions/Donations||$320||$1,725||$0||$0||$0||$0||Non-onward going expense|
|Gifts||$0||$8||$479||$479||$410||$159||Non-onward going expense|
|Auto-Personal Use||$0||$0||$0||$858||$958||$583||Personal auto expenses|
|Meals & Entertainment||$516||$0||$2,415||$0||$0||$0|
|Manager went PT in 2017||$0||$0||$32,500||$0||$0||$0||Manager went to PT|
|Seller's Cash Flow = Total Addbacks + Net Income||$36,783||$81,442||$68,769||$51,152||$84,076||$43,811|
|Profit Margin||51.26 %||27.23 %||20.91 %||21.65 %||30.89 %||22.53 %|
- Average profit margin of 25% over the past 5 years
- Gross Sales average $266,178
- Strategic Marketing & Development
- Short and long-term plans for start-ups, non-profits, municipalities, PAC’s and political campaigns both locally and nationwide
- Earned and paid media campaigns
- Board recruitment
- Public Relations
- Engagement of stakeholders, coalition building, identification of the right audience, recommended communication strategies, and development of key messages
- On-going communication and public outreach on behalf of clients
- Community organizing and action
- Event Planning
- For corporations, non-profits, memberships associations, charity events and political campaigns/issues
- Panel discussions, stakeholder meetings, conventions, concerts, marches and rallies
- Management of finance operations and budgets for local, statewide and nationwide campaigns and non-profits with multi-million dollar budgets
- Fundraising for statewide, Senate, and House candidates
- Raised nearly $75 million since 2005 for candidates
- Over $100 million raised in 501c(4), 501c(3), and 527 contributions for non-profits
- Agency President/Strategic Advisor
- Writes proposals
- Strategy analysis
- Client management
- Assists with project management
- 15+ years of experience
- Marketing Director
- Handles agency’s writing and marketing materials
- Company website
- Assists with client management
- Account Manager
- Client management, handles schedules, organizes stakeholder meetings, and designer
- Works remotely
- Office Manager
- Billing, accounting, payroll, HR, and research
The Firm Business Brokerage used a Cash Flow Valuation methodology to determine the Purchase Price of the business. The formula used is as follows:
Cash Flow x Multiplier = Price
“Cash flow” is the sum of net income plus any owner perks and non-onward going expenses.
“Multiplier” is a prescribed number between 1 and 5 determined by a 100-point, 20-question rating system used to determine the business valuation (average is 3).
The 2-Year Average Cash Flow for 2016 & 2017 is $75,105, and the prescribed multiplier is 2.77.
With this information, the computation result follows:
$75,105 x 2.77 = $208,041
The List Price for the business is set at $208,000.
Purchase Price: $208,000
15% Buyer Down Payment: $31,200
15% Seller Financing: $31,200
70% Bank Loan: $145,600
Seller Financing 5-year term at a rate of 4.50% equals a monthly loan payment of $582.
Bank Loan 7-year term at a rate of 5.25% equals a monthly loan payment of $2,092.
After business expenses and loan payments, a buyer with a down payment of $31,200 would retain a profit of $36,682, which results in a 118% return on investment in the first year!
A lender is required to have a minimum 1.5 coverage ratio for any business loans extended. At a proposed Purchase Price of $208,000 with the terms listed above, the coverage ratio is 2.14.
Please note that the decision of whether to extend a loan on any sale belongs to the bank, and this document does not guarantee specific terms or verify that financing is available.
Offer Price: $
% Buyer Cash Down at Closing: $
% Seller Carry Back via Promissory Note: $
year term at a rate of %
% of Purchase Price secured by Buyer and Seller
Total Bank Loan Need: $
% of Purchase Price
Desired Loan Type:
Desired Bank Terms: year term at a rate of %
Total Business Assets, Inventory, and A/R: $
Total Undercollateralized Loan: $
|Monthly Payment to Bank:||$|
|Yearly Payment to Bank:||$|
|Monthly Payment to Seller:||$|
|Yearly Payment to Seller:||$|
|Total Monthly Debt Service:||$|
|Total Yearly Debt Service:||$|
Fixed Charge Coverage Ratio
The bank will require a minimum ratio of 1.5 to be lendable.
2-Year Average Cash Flow
|Annual Debt Service:||$|
Buyer's Net Operating Income (NOI)
The amount of money the Buyer will retain as profit.
2-Year Average Cash Flow
|Annual Debt Service:||-$|
Buyer's Return on Investment (ROI)
The rate of return on the Buyer's down payment.
|Document Title / Description|
This folder is empty.
Access to this Deal Room is restricted
Would you like to access the deal room?Yes, please
Already have an account? Log in here.
Print, sign and send to:210 N 78th St. 2nd Floor
Omaha, NE 68114
Or fax to: