Adam Goldberg·April 14, 2025

How to Reinvent a $1m Candle Manufacturer | Adam Goldberg Interview

Adam Goldberg is a Montreal-based serial entrepreneur in his late 50s who, after two significant exits (a Canadian retail chain and a $40-50m costume jewelry wholesale business), bought a distressed candle manufacturer called Serakon in December 2023 for approximately $300k to the seller plus $300k injected as working capital. The business had declined from $5m in peak revenue to roughly $1.2-1.3m, and the founding owner's husband had died during COVID. Adam skipped meaningful due diligence and lost nearly half of remaining revenue immediately post-close when legacy customers like Staples Canada departed. He over-hired, managed remotely from Florida, and burned through a first partner relationship before stabilizing the business with a new 50% partner — a successful Quebec retailer who became his creative strategist. The key strategic pivot has been licensing iconic Canadian cabin artwork (owned by Dominion Grim since the 1950s) to build a maple syrup-scented candle brand and expand into general merchandise (mugs, scarves, sweatshirts) sold through Canadian gift shops, airport retail, and hotel gift stores. By early 2025 the business was cash flow positive, beating budget by 200% in February, and Adam was targeting a doubling of revenue in 2025, aided in part by Canadian buyers seeking domestic suppliers amid US tariff tensions.

Deal facts

purchase price: $300k goodwill + $300k working capital = ~$600k total deployed
revenue: $1.2–1.3m at acquisition (down from $5m peak); tracking ~$1.5m in 2024
financing structure: All-cash, no debt, no SBA; funded personally with a 50/50 partner (partner later bought out, new partner brought in)
notes: Adam paid $300k to seller (goodwill + inventory) and injected $300k working capital into the company. Inventory appraised at ~$150k but estimated real value closer to $50k. No bank financing; company described as not financeable. First partner (childhood friend) bought out ~4-5 months in. New partner (successful Quebec retailer) funded the buyout of the first partner and holds 50% equity.

Why this business

Adam liked that he could understand it easily — buying for a dollar and selling for two — and saw potential in a made-in-Canada manufacturing story. He had deep retail and wholesale relationships from his prior jewelry career and believed he could leverage those to rebuild the customer base. The price was low enough that downside felt manageable, and the business fit his self-described strengths as a sales and execution person rather than an idea generator.

What's working

Maple syrup-scented candles with iconic Canadian cabin artwork (licensed from Dominion Grim) are driving repeat orders — Adam estimates ~90% of candle revenue is repeat business
Strategic pivot to licensing the artwork across general merchandise (mugs, sweatshirts, scarves, etc.) with early strong trade show reception in Toronto
Made-in-Canada positioning is gaining relevance amid US-Canada tariff tensions, with Canadian retailers actively seeking domestic suppliers
Candle contract manufacturing business has rebounded, with small brands approaching Serakon to make private-label candles
Stabilized, lean team of long-tenured employees (20+ year veterans) who operate with ownership mentality
February 2025 revenue beat budget by 200% (off a small base)
Business reached cash flow positive after roughly one year of losses

What's hard

Lost approximately half of revenue immediately post-acquisition as legacy customers (including Staples Canada) abandoned the business — they had been loyal to the founder, not the brand
Did not conduct meaningful due diligence on customer relationships or inventory; estimated $150k inventory was closer to $50k in real value, much of it obsolete
Seller (founder's widow) was emotionally fragile, deal took a year to close, and seller departed after only two weeks despite a six-month transition agreement
Bloated overhead early on — hired a six-figure VP and other staff before understanding the business, then had to let everyone go
Spent first three months managing remotely from Florida, which damaged trust with remaining employees and alienated original partner
Original 50/50 business partner (childhood friend) proved incompatible; had to be bought out after 4-5 months, straining the friendship
Went to Atlanta Gift Show and wrote only $700 of business over five days after spending $15-20k on the booth — confirmed the undifferentiated candle positioning was not working
Strong business seasonality (very slow Jan-May, very busy Q3-Q4) created cash burn pressure with no predictable revenue stream
Spent first 6 months unable to answer basic customer questions about candle specifications; lost credibility on sales calls
Hundreds of thousands of dollars burned on bad decisions in the first year

Notable quotes

I misjudged big time. We'll get into that. But everything I thought was going to happen didn't happen.

I didn't do the due diligence. I didn't speak to the buyers in advance to see if they were happy with this company. I was a colossal misstep on my part.

You say don't do drugs, I say don't go into business with friends.

When the product's great, the selling is effortless. It comes easily because the product checks at retail. So most of the business that we're doing right now is repeat business.