The Company is a family owned bakery specializing in custom decorated cakes. The bakery owns multiple retail stores in the Chicago area. They carry a full line of bakery items such as pies, cookies, cupcakes and breads.

The Company serves three primary markets:
Special Order Items - 50%
General Bakery Items - 30%
Wholesale Items - 20%

The Company’s main source of business is its custom cakes, cupcakes and cookies ordered for special occasions. They also sell some items to grocery stores.

In 2015 the Company generated $5.5M in sales. The Company’s selling efforts rely primarily through word of mouth. They have a great reputation and are known for their custom cakes. Some direct mail ad campaigns are used and they also run ads in several local publications. It has no direct sales force and is not proactive in generating new customers, except through referrals and its website. A direct sales effort would definitely have a favorable impact in gaining more wholesale business.

The Company’s hallmark is their custom cakes. The bakery uses its own recipes and is known for the quality of their products. The Company sells locally in their retail facilities and will ship certain specialty items to past clients who have moved out of the area.

The Company has a president that oversees the day to day operations and manages the retail store managers. The bakeries are located in attractive, affluent neighborhoods of Chicago.

The Company is well positioned to continue its performance in sales and profitability providing a solid platform for growth. It is an attractive acquisition candidate for private investors desiring a well established business or an industry related company seeking to expand its customer base or current distribution channels.

Posted Jan 3, 2016

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