Case Study
Sullivans
A home décor distribution company wanted to capitalize on its legacy, now Fort Point Capital is helping to craft a new era of success.
Location:
Sioux Falls, SD
Sector:
Business Services
Date Acquired:
Exit Date:
Bill Sullivan
President, Sullivans
"My team and I were searching for a partner that would bring a leadership solution, as well as provide the strategic and financial resources for the company’s continued growth. Fort Point was precisely the right partner to guide the company going forward and build upon my family’s 46-year legacy."
Situation
Headquartered in Sioux Falls, South Dakota, Sullivans is a leading designer and distributor of seasonal and all-occasion home décor products to specialty retailers. The company had built a reputation for excellent customer service and unique, high-quality products that enable specialty retailers to offer distinctive assortments.
After 25 years of leadership under the Sullivan family, the president was retiring, and the company turned to Fort Point Capital to bring a new leadership team as well as the strategic and financial resources for continued growth.
Our Role
Fort Point Capital completed the recapitalization in September 2014, and enabled the Company to professionalize infrastructure, improve its corporate governance, execute and integrate two highly accretive acquisitions, and create/build e-commerce and national accounts divisions. In addition, Fort Point worked with the management team to build a robust pipeline of acquisition opportunities to complement the Company’s strong organic growth momentum and category expansion.
Senior Management Team
- Helped to identify and recruit a talented management team, hiring a CEO, CFO, VP of Sales, VP of Product Development and Director of Marketing.
Improved Corporate Governance
- Initiated formal board meetings.
- Established audit and compensation committees.
- Added outside Directors to the board.
Aligned Interests with Management
- Created and implemented performance-based equity compensation program.
- Senior managers invested in the company for the first time.
Implemented Growth Strategy
- Developed strategic growth plan to build significant e-commerce and national accounts divisions, to expand product offering, and to enhance margins and drive operational efficiencies.
- Invested in sales and marketing that promoted cross-selling and deepened sales coverage.
Improved Infrastructure
- Improved financial reporting to develop KPIs to provide actionable insights for the management team
- Upgraded IT systems.
M&A
- Completed and fully integrated two strategic add-on acquisitions, with additional actionable pipeline targets at the time of sale.
Results
During Fort Point’s ownership, Sullivans grew to become a market leader in the home accessory segment, providing a “one-stop-shop” for customers in the home décor, seasonal and outdoor products space. Fort Point worked closely with management to develop a robust business model that was well diversified across its customer, channel, supplier and product base, and created the template for a proven consolidation playbook. Over the course of the partnership, Sullivans grew its revenue 2.6x and more than doubled its EBITDA. Fort Point Capital sold Sullivans to ICV Partners, a middle market private equity firm, in November 2022.