Why This Once-$22M Flatpack Furniture Company Is Worth Almost Nothing Now
Aug 15, 2025
The hosts dive into the dramatic decline of a once-thriving flatpack furniture company, now worth near its working capital. They analyze the reasons behind the staggering revenue drop from $22M to $9.4M, while oddly noting an increase in gross margins. The discussion reveals challenges in e-commerce, including rising ad costs and intense competition. They also explore the complexities of interpreting e-commerce financial metrics and the operational hurdles that threaten profitability in the fast-paced retail landscape.
29:41
forum Ask episode
web_stories AI Snips
view_agenda Chapters
auto_awesome Transcript
info_circle Episode notes
insights INSIGHT
Revenue Collapse With Rising Gross Margin
Project Assembly fell from $22M to $9.4M revenue from 2020–2024 while gross margin rose from 19% to 32%.
The hosts flag this mismatch as a major red flag needing deeper P&L and EBITDA clarity.
insights INSIGHT
Don't Trust Gross Margin Alone
Gross margin definitions vary in e-commerce and can hide advertising or delivery costs moved above the line.
Bill warns that contribution margin matters more than the reported gross margin for true profitability.
volunteer_activism ADVICE
Require Full P&L And EBITDA
Request full P&L and EBITDA, not just gross profit, before considering the deal.
Use those figures to check whether margin expansion is real or just expense reallocation.
Get the Snipd Podcast app to discover more snips from this episode
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.
Acquisitions Anonymous - #1 for business buying, selling and operating