In this episode, the hosts dissect a distressed e-commerce furniture supplier deal selling near working capital value, debating whether falling revenues, marketplace dependence, and margin mystery leave any room for a profitable turnaround.

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The team reviews “Project Assembly,” a branded ready-to-assemble furniture supplier with a proprietary product line and strong e-commerce distribution through Amazon, Lowe’s, Home Depot, Target, and Wayfair. Once generating $22M in revenue, the company has seen a four-year slide to $9.4M, though gross margins have oddly improved from 19% to 32% despite the drop. The deal is being marketed at roughly $3.8M — close to the estimated book value of its working capital — making it feel more like a liquidation opportunity than a healthy going concern.

Key Highlights:
- Asking price: ~$3.8M, pegged to working capital value.
- Revenue decline: $22M in 2020 → $9.4M in 2024.
- 98% marketplace e-commerce sales via major retailers.
- Gross margins increased from 19% to 32% despite shrinking sales.
- Marketplace algorithm ranking & Chinese competition as potential killers.

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