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

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. Business Listing – https://sunbeltbusinessadvisors.na1.echosign.com/public/esignWidget?wid=CBFCIBAA3AAABLblqZhBlhdGFxx3mqBCvFivLTWiYVRhy79ufoVFC-anF9an9FqncoIGMVsReaFLOLRWxL-k* Welcome to Acquisitions Anonymous – the #1 podcast for small business M&A. Every week, we break down businesses for sale and talk about buying, operating, and growing them. Subscribe for more episodes: https://www.youtube.com/@AcquisitionsAnonymousPodcast?sub_confirmation=1 Subscribe to our Newsletter: https://www.acquanon.com/newsletter Connect with us on Social Media: Twitter: https://twitter.com/acquanon LinkedIn: https://www.linkedin.com/company/acquanon 👋 Follow the Hosts Michael Girdley – Entrepreneur & investor. Twitter: https://twitter.com/girdley Bill D’Alessandro – CEO of Elements Brands. Twitter: https://twitter.com/BillDA Heather Endresen – SBA lending expert & advisor. Twitter: https://twitter.com/EndresenHeather Mills Snell – Small business investor & advisor. Twitter: https://twitter.com/thegeneralmills 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.