Advantage Solutions capitalizes on trend, files for IPO
Marketing is such a tricky part of doing business.You have to know your market, keep up with consumer trends that seem to change every other week, maintain low production and sales costs just to mention a few things on a marketing to-do-list. And all these just so you can compete with your peers. A producer may not have enough time to do all that market research. That is why companies like Advantage Solutions exist, to do it for them.
Advantage Solutions Inc. is an Irvine, CA-based company that was founded in 2014 to act as an intermediary between producers and their distributors. Any producer who is new to the market or just wants a change in distribution strategy can approach this company and have all their work done for them. Advantage Solutions has experienced associates who will approach retailers on a consumer manufacturer’s behalf. They will convince suitable retailers to stock your label. They’ll even advice the retailers about issues such as pricing, display arrangements and product promotion methods on your behalf. In the end, your online or physical store will have more customers breezing through. Well, breezing through and buying what’s on offer, at least that’s what Advantage Solutions guarantees.
Advantage Solutions announced on Thursday that it would be publicly trading its stock in the nearby future. They’ll be on the NASDAQ market under the stock label ADV. The US-based company did not say that it would be selling a specific number of shares or at a given range. No overallotment was stipulated either. Anyway, the company plans to raise up to $100 million during its trading period. And that might be even easier with the Goldman Sachs-Morgan Stanley underwriting team that Advantage Solutions is using for the IPO.
Investors can’t wait for the chance to get their hands on Advantage Solutions shares. In the first quarter of 2017 alone, the company reported a revenue figure of $508 million. Added to that, the net income for the firm in the three months ended March 31st was an estimated $9.2 million. How many investors would you pass up such a good bet?
Also, Advantage Solutions has a proprietary license to the tech and solutions that it gives to each company. That makes the firm competitive enough to take on companies like Alibaba. Additionally, Advantage Solutions has invested a lot of capital in nurturing talent, expanding and developing technologies to suit their clients. As such, the company’ has developed a diverse culture and professionalism. These two qualities set Advantage Solutions apart in the supplier market niche, so the company will be making money years to come.
Each year different people spend more and more money on different goods. That means that each year producers have to convince people to choose their products. Advantage Solutions provides marketing and ad services for these businesses. So long as other enterprises exist, Advantage Solutions be in business. No doubt investors like that.
Advantage Solutions will use the funds from the IPO to pay off its debt and run its operations.