Matrix Capital Markets Group (804) 780-0060 - Case Study: Board Dudes, Inc.

Case Study: Board Dudes - Exclusive Sale

Situation

Board Dudes, Inc., based in Corona, California, is a leading designer and marketer of branded school, office and home products sold through the mass retail channel nationwide.

Objective

The principals of Board Dudes had the majority of their personal net worth tied up in the business. The owners sought a larger parent to help fund working capital for their rapidly growing Company, as well as personal liquidity and risk diversification for themselves.

Solution

At the time of engagement, the company was generating a low EBITDA level that did not reflect the enormous growth potential of the business. Matrix advised the owners to wait until the Company could clearly demonstrate it was on track to achieve its anticipated growth in order to achieve maximum value for the Company.
Rose Art, a subsidiary of Mega Bloks, was attracted to the Company’s top notch product development, and had already made overtures to the Company. Rose Art was included in a broad process that included over 200 private equity groups and more than 50 strategic buyers.
Rose Art ultimately acquired Board Dudes for roughly a 50% premium over its initial offer, due largely to the leverage created through the broad auction process.