CEO Aaron Krause has major expectations should he sell his company, Scrub Daddy, to a competitor, writes Kennedy Rose for Philadelphia Business Journal.
A typical sale offer would sell a company for three to five times earnings. A tech company might be worth 10 times earnings.
Krause would sell for more than 20 times Scrub Daddy’s earnings.
Things are great at the company. Sales are up 25 to 30 percent year over year.
Watch Aaron Krause make his Scrub Daddy pitch on Shark Tank.
The Folcroft company, a maker of cleaning products, is an essential business and an “unintended beneficiary” of the pandemic .
Even so, it’s been a challenge staying open in the pandemic.
“I’m trying to run a business that sells smiley-face sponges, and in the meantime I’m also directing pandemic control, which is not something that I am well versed in,” Krause said.
Scrub Daddy’s success means it needs a bigger place outside of the two Folcroft buildings and rented Sharon Hill space.
As his product expands west, he’s also thinking about a distribution center in Nevada.
Meanwhile, “I expect to continue to harass my competitors,” Krause said. “I expect to take many more shelf spaces from them.”
Read more about Scrub Daddy at Philadelphia Business Journal.
