Large, Profitable Outdoor Sports Retailer

JULY 01, 2024

We are delighted to present this attractive opportunity to own a West Michigan 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 operating from a beautiful late model building (available for lease at an attractive rate or purchase in a separate transaction). 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. A well maintained purpose-built, late model 10,000 square foot building sits upon a 5-acre parcel. An overhead door and forklift make offloading inventory a breeze, while the retail floor is kept well stocked and organized for a pleasant shopping experience. An additional perk is the indoor shooting lane which not only allows staff and patrons alike the ability to dial in their bow but also host indoor archery leagues.

Great real estate is just “a piece of the pie” when it comes to this opportunity. The business which has stood the test of time as a stand-alone retailer attributes its success to quality products and personalized service. Three key employees with their combined 40+ years of industry experience have fostered a loyal customer base by not only selling brands such as Matthews, Henry, Leupold, and Abu Garcia but also by offering small town service big box stores can only dream of. These key employees look forward to working with new owners to continue the growth and success of the business.

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 $312,545 over the same period. This business is attractively priced at $1,825,000 which is the sum of three key components: (1) a conservative 2.0x multiple of annual EBITDA ($312,545 x 2= $625,090) plus (2) $1.2 million of salable cost basis inventory and (3) The goodwill of the business and enterprise value of the business, which includes an experienced management team.

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 lease to an attractive piece of purpose-built 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.