Phoenix Sound is a wholesaler of high quality, value-for-money sound equipment. We aim to be the invaluable link between cutting edge technology producers and the retailers who service the man on the street.
The Power of Sound
At Phoenix Sound, we are passionate about what we do. For us, it’s not just about speakers. We treat the power of music and sound with the highest respect. We are awed that music – high fidelity and coherent – actually pervades the universe.
Scientific studies have shown that the harmonic sound of a seven-tone scale is echoing out every day into the cosmos – produced by the planets spinning through space in their orbits. Solar flares are also triggering acoustic waves that loop back and forth similar to the standing wave sound produced by a guitar string.
Here on earth, we dance with joy, we are moved to tears, we fear, we love, we remember, we forget because of music and sound.
That’s the power of sound and it’s in our hands.
Wide market reach in all price ranges. We want to support our retailers as they grow their business across all markets. We cater to the whole market range from low-end to high-end since we want to be able to provide for our retailers’ needs as they evolve in their businesses. Our retailers come from scattered geographic markets and have their own market niches. Some shift from one market strategy to another. We want to be there for them all the time regardless of change.
Excellence and quality. We want our customers to keep coming back and spreading positive feedback about our products and services. Since we are passionate about our business and our products, anything below par will not cut it. We are building goodwill in our business and so we give excellence and quality top priority and see it as a major ingredient for profitability.
Value for money. We believe in striking a perfect balance between product excellence and affordability. With stiff competition and the fast pace of the sound industry, reasonable prices give us our competitive edge.
Nurturing long-term relationships with retailers. Our retailers aren’t just one-time deals. We treat our retailers as our ears on the ground. They have their fingers on the market pulse and we value their feedback. We want to encourage the flow of information between them and us. Together, we are a constantly evolving team always alert and responsive to market demand.
Keeping current with technology and market trends. We want to identify market opportunities at the onset. We want to move the market and always be ahead. By encouraging communication between supply-side and demand-side, we are able to gain access to critical information at the right time.
Maximizing business value. To keep doing what we are doing and keep getting better at it, we need to maximize our business value. We believe we are providing something of great value to the industry and we owe it to our customers and shareholders to maximize profitability.
Whilst we can’t possibly hope to keep up in terms of price with places like this, our goal is to focus more on quality.
Business growth and expansion. Beyond organic business growth we are looking into acquiring small businesses that would allow us to expand our operations within the industry.
Our Strategy for Growth
Phoenix Sound believes that sustainable business development and expansion is not limited to organic growth. We are willing to acquire small businesses and start-ups that show great potential in growing our existing business.
Backward integration. We are on the lookout for companies with brilliant ideas and great products. These companies might just be in their research and development stage and will be in need of funding. Our main concern would be innovativeness and market viability. We would also consider and put a value on any existing developed technology.
Forward integration. We would also love to get into talks with small retailers in markets or geographic locations that show promising growth prospects. These may include small online retailers who have a valuable online operating and accounting system linked to an established customer base.
Support services. Also on our list are small businesses involved in services that would support our operations. These may include businesses with a well-established system and expertise in sales and marketing, billing and collections and customer relations, among other support areas.
Criteria for Acquisitions
In evaluating the attractiveness of a target business, we will be placing value on intangibles such as customer relationships, tradenames, developed technology and/or research and development advances.
In addition, we consider a number of attributes as fundamental to our analysis- things such as the character of management, quality of existing manpower, customer base and market share.
Our due diligence team will then look into the target company’s financials, starting with a study of its existing accounting system in order to verify data integrity and accuracy. Small business and start-ups usually have issues with internal control and checks and balances given the compact structures of their businesses. These will have to be taken into account.
We will consider financial details such as accounts receivables and their collectability, accounts payables, research and development costs and capital assets. Contingent liabilities, including tax issues would also be considered essential. We will look into financial ratios such as current ratio, quick ratio and return ratios among others. Necessary adjustments will then be made to find the proper valuation of a purchase.
Although we are willing to infuse equity to address liquidity concerns, this requires that we also look into the historical use of mutual funds and cash burn rates since these may also be indicative of management character and prudence.
In summary, we will consider a prospective small business acquisition by looking at the target entity in its totality. It does not have to be operating at a current level of profitability per se. But it must have a huge potential for growth and development.