Big Dot of Happiness

Finding the right partner to help drive growth

Big Dot of Happiness has been acquired by Altacrest Capital

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Based in Menomonie, Wisconsin, Big Dot is a founder-owned, leading online seller of designer party supplies and lifestyle collections. The Company manufactures and sells directly to consumers unique party favors, decorations, yard signs, and other lifestyle products that create “Goosebump Moments” for the events in our lives that are important to celebrate, including birthdays, graduations, baby showers, holidays, and other special events. Big Dot’s products are original creations from the Company’s own in-house design team and are U.S.-manufactured within the Big Dot’s Wisconsin facilities. The Company sells its products exclusively via eCommerce channels including Amazon, Walmart, Etsy, its own branded website, and others. The Company’s unique knowledge and expertise within the Amazon channel has helped Big Dot drive significant growth and profitability. 

Situation Overview

Founders Sherri and Scott Yukel were looking for a partner who would provide them with liquidity and help execute on their ambitious growth plan.

You honestly have been a true blessing. We could not have done any of this without you. You are simply the best, almost like family! Thank you for all the hard work! – SHERRI YUKEL, FOUNDER, BIG DOT

M&A Transaction Process

Vermillion worked closely with Big Dot for several months to prepare the Company for its sale prior to going to market. Vermillion advised Big Dot on several strategic initiatives and decisions, including:

  • Big Dot primarily sells its products via Amazon. Knowing that any significant channel concentration could be concerning to buyers, Vermillion directly addressed Big Dot’s unique relationship with Amazon and demonstrated to buyers that the concentration with Amazon was a strength and not a weakness.
  • Advised Big Dot on building a detailed roadmap for growth.
  • Advised Big Dot on analyzing its financials to identify add-backs to EBITDA to ensure the owners were getting full credit with respect to valuation from buyers.

Result

Through a broad marketing process, Vermillion spoke with over 150 prospective buyers and secured 21 first round bids. Big Dot was sold to Altacrest Capital at a 5.2% premium to the next highest bidder.

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