This business opportunity has been aggressively priced for immediate sale. The owners are seeking an all cash buyer who can complete a transaction quickly and accordingly they have priced the business significantly below their current investment in IP and well below the potential of the licensed artwork assets of the business estimated to have a retail value of $33 million.
To facilitate a simple transfer of ownership, the owners have created a new U.S. business entity and transferred all assets of the business into that entity, including their entire portfolio of limited-edition art agreements which have been recently renewed with their artist community. Highly discounted FedEx shipping rate agreements, contracts with fine art printers in California and aggressive Magento application support rates have also been secured through the new U.S. entity providing for all the operational aspects of the business within the continental U.S.
The fine art sales worldwide is a huge and growing market. The art industry has enjoyed tremendous volume and price growth for over 20 years and reached a record high of $68 billion in 2014. Last year, worldwide online sales of art and collectibles were estimated at $3.75 billion, an increase of 15 percent over the previous year. And while this represents a steady growth in this new channel for fine art, no dominant player has yet emerged from the competitive shuffle and the market represents a huge opportunity for an e-commerce player with the right platform and portfolio of fine art.
This platform is dedicated to exclusive limited-edition prints of museum quality artworks by fully established artists, many of whom normally do not sign with online art galleries or allow limited edition prints. This is one of the first platforms to feature prints of established artists in the highest segment of the market; these artists normally work exclusively with physical galleries. The business owns the publishing rights of this artwork indefinitely. Each limited edition is represented online and sold via the website. Printing and fulfillment are completed on-demand after the sale by a high-end print and production company in California using state of the art printing facilities and print media to ensure the exclusivity and quality of the end product.
For those already in the industry, the exclusive inventory of $33M US in limited editions represent an attractive addition to their existing portfolio and the established web platform offers an additional channel to market for their existing clients and art assets.
An opportunity has arisen for the partners of this business to start a new venture and they would like to re-direct their attention toward this endeavor. The owners are seeking an all cash buyer who can complete a transaction quickly and accordingly they have priced the business significantly below the investment and potential the business represents. This internet business is an ideal acquisition target for strategic buyers in the art or online print space or those eager to engage this fast-growing market. In addition, as the business has fully outsourced its operations (printing, shipping, website management), this is also an excellent opportunity for a digital marketing expert or company with the resources and skills to drive traffic to the $33 million in exclusive art licensed by this business.