Retailer of Outdoor Products with Robust Inventory

JULY 01, 2024

We are delighted to present this attractive opportunity to own a Michigan-based business with over 20 years’ experience gearing up those with the love of the great outdoors. This successful retailer of “everything outdoors” includes of course hunting, fishing, and camping, boasting shelves filled with a robust inventory and a beautiful late model building (included in the sale). 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 throughout the state of Michigan. Quality name brand products and competitive pricing are complimented by expert sales and service. Three key employees with their combined 40+ years of industry experience look forward to working with new owners to continue the growth and success of the business.

This successful company is packaged with a purpose-built, late model 10,000 square foot building sitting on a 5-acre parcel. Well organized, active inventory with a cost basis of $1 million plus, ensures that 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 years of experience and local knowledge of the staff guarantees products are 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 past three years have averaged nearly $4,000,000 annually, while normalized annual EBITA averaged $367,500 over the same period. This business is attractively priced at $2,435,000 which is the sum of three key components: (1) a conservative 2.0x EBITA multiple of $367,500 of annual EBITDA plus (2) $1.0 million + of salable cost basis inventory plus (3) an attractive real estate parcel with a current $700,000 market value. The goodwill of the business and enterprise value, which includes an experienced management team in place, is of course included in the purchase price.

The sellers anticipate an asset sale in which they retain cash and the minimal A/R while retiring all liabilities. The buyer receives all furniture & fixtures, 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.