Exceptional Retailer of Outdoor Products with Real Estate

MAY 03, 2024

It has been a great run for the owners of this large and successful retailer of “everything outdoors” including of course hunting, fishing, and camping. Gearing up for those with the love of the great outdoors for more than 20 years this outstanding business opportunity (with real estate included) is a surefire success. A one stop shop for your archery, firearms, camping, and fishing needs is now on the market with the current ownership pursuing a non-competitive venture.

Conveniently located just off a well trafficked State highway, this business, with great visibility from the road and ample adjacent parking, captures outdoor enthusiasts from most of Michigan. Customers will find quality name brand products complimented by expert sales and service provided by three key lead people who look forward to working with new owners to continue the growth and success they have enjoyed during their combined 40+ years of industry experience.

Owning and occupying a purpose-built late model 10,000 square foot building (included in the sale) on a 5 acre parcel, the store features wall to wall current, active inventory with a cost basis of $1.4 million. Whether you are looking to buy a Matthews bow, a lever action by Henry, Leupold optics, or an Abu Garcia reel; you can be sure to find what you are looking for. The retail space is well organized and thoughtfully curated to fulfill customer needs. The retailer has maintained a long-standing buying group membership which affords competitive pricing on par with the larger chains while maintaining the quality customer service you expect from a locally owned business. The presence of this business is such that there is not a meaningful competitor within 45 miles.

Now let's talk numbers. Sales over the last three years have averaged nearly $4,000,000 annually, while normalized annual EBITA averaged $425,000 over the same period. This business is attractively priced at $2.95 million which is the sum of three key components: (1) a conservative 2.0x EBITA multiple of $425,000 of annual EBITDA + $1.4 million of salable cost basis inventory + (3) an attractive real estate parcel with a current $700,000 market value. And the goodwill of the business which includes an experienced management team in place is of course included in the purchase price.

The sellers envision an asset sale in which they retain cash and the minimal A/R while retiring all liabilities. The buyer receives the goodwill of the business, all fixed assets, inventory and real estate. In addition, the sellers will hold a meaningful six figure seller note for a qualified buyer.

Contact Ryan Johnson at Praxis Business Brokers (269-338-9809 or [email protected]) today to learn more about this excellent business opportunity.