Offering Memorandum — Royal Silk

Licensed-Operator Edition — v3.1 | July 23, 2026 | REPLACES all prior versions

Pre-NDA marketing document. This page is the master OM reference for the Royal Silk listing under the licensed-operator structure approved by the seller on July 23, 2026. Detailed financials, the inventory schedule, and the Buyer Deal Workbook are released only after NDA + Buyer Profile.

1. The Opportunity

Own the operating business behind ROYAL SILK — the celebrated American silk brand founded in 1978, a catalog-era national name (2.5–3 million circulation at peak) still selling today through its branded website (≈65% of revenue) and established Amazon storefront (≈32%). The offering is a comprehensive, ready-to-operate licensed business: the founder retains the trademarks and becomes the buyer's licensor; the buyer acquires the operations, the warehouse inventory position, and the e-commerce rights, and operates under a straightforward brand license. A license, not a franchise — no FDD, no operations manual, no audits, full operating freedom.

2. Pricing & Deal Snapshot

Asking Price — Business Assets	$325,000
Plus: Year-1 license fee (prepaid at closing, credited against royalties)	$35,000
Total Year-1 Investment	$360,000
Appraised Fair Market Value (BVR v8)	$290,000 (range $245,000–$335,000) — priced inside the appraised range, engineered to transact at appraised value
License	6% of net sales; $35,000/yr minimum paid in advance; 10-yr exclusive (existing categories) proposed
Gross revenue (TTM)	$502,861
Cash flow to working owner (after license fee)	$44,121
Inventory INCLUDED in asking price	$225,000 deal value — ≈$446,000 at cost / ≈$1.49M at retail (warehouse, 115 SKUs / 47,964 units)
Implied price of the operating business (net of inventory)	$100,000 — about 2.3x post-license cash flow, below the 2.6x–4.0x e-commerce market band
Facility	3,000 sq ft NJ warehouse, month-to-month ≈$3,750/mo — assume, renegotiate, or relocate
Established / Team	1978 (48 years) / owner + small staff; founder transition support

3. Why This Deal Works

The inventory pays you back. ≈3 years of premium silk stock at half its cost value, converting at ≈70% gross margins with zero replacement purchases — full payback of the total investment in approximately four years on the conservative pro forma.
Famous name without the famous-name price. The ROYAL SILK marks (8 USPTO classes, Famous Mark status) are licensed, not purchased — capital goes to earning assets.
Complete e-commerce infrastructure. Website, photography archive, ranked Amazon listings and reviews, 19,000-contact customer file, and the founder's five-decade silk supplier pipeline.
Aligned licensor. The founder's income after closing is the royalty — the buyer's growth is his growth. Crossover to the 6% rate at $583,333 of sales.
Obvious growth levers. Reactivate the customer file, restore advertising efficiency (currently ≈29% of sales), expand categories with licensor approval, ride the silk-sleepwear / quiet-luxury cycle.

4. Process

Execute NDA + Buyer Profile (links per house workflow)
Receive CIM + Buyer Deal Workbook; management discussion
LOI on the provided term-sheet framework (asset purchase + license schedule)
Diligence: inventory count, supplier cost documentation, platform review, license agreement via counsel
Close: asset transfer, license execution, prepaid Year-1 minimum, transition begins