Why This Once-$22M Flatpack Furniture Company Is Worth Almost Nothing Now

Acquisitions Anonymous - #1 for business buying, selling and operating

In this episode, the hosts dissect a distressed e-commerce furniture supplier deal selling near working capital value, debating whether falling revenues, marketplace dependence, and margin mystery leave any room for a profitable turnaround.
Sponsored by:
Heron Finance – build a personalized private credit portfolio for steady monthly income—without the market rollercoaster. In minutes, take a quiz, see your custom plan, and invest in 12+ top-tier funds from managers like Ares, Apollo, and KKR, overseeing $1T+ with loss rates under 0.5%. Higher returns than bonds, lower volatility than stocks—start earning today at https://www.HeronFinance.com.
Capital Pad – The modern back office for dealmakers. Capital Pad helps acquisition entrepreneurs, searchers, and private equity firms streamline deal tracking, investor updates, and portfolio management — all in one easy-to-use platform. Explore more at https://www.capitalpad.com.
The team reviews “Project Assembly,” a branded ready-to-assemble furniture supplier with a proprietary product line and strong e-commerce distribution through Amazon, Lowe’s, Home Depot, Target, and Wayfair. Once generating $22M in revenue, the company has seen a four-year slide to $9.4M, though gross margins have oddly improved from 19% to 32% despite the drop. The deal is being marketed at roughly $3.8M — close to the estimated book value of its working capital — making it feel more like a liquidation opportunity than a healthy going concern.
Key Highlights:
- Asking price: ~$3.8M, pegged to working capital value.
- Revenue decline: $22M in 2020 → $9.4M in 2024.
- 98% marketplace e-commerce sales via major retailers.
- Gross margins increased from 19% to 32% despite shrinking sales.
- Marketplace algorithm ranking & Chinese competition as potential killers.

Subscribe to weekly our Newsletter and get curated deals in your inbox
Advertise with us by clicking here

• Do you love Acquanon and want to see our smiling faces? Subscribe to our Youtube channel.
• Do you enjoy our content? Rate our show!
• Follow us on Twitter @acquanon Learnings about small business acquisitions and operations.

For inquiries or suggestions, email us at [email protected]