Normalized Cash Flow: $165,000
What they do – the short version:
- Well established sporting goods store with emphasis on hunting.
- Gunsmithing keeps them busy in the winter.
- Large base of repeat customers
- Business can grow with out hiring more staff
- All equipment is in good working order.
HuntCo is well known sporting goods retailer mostly catering to hunters. They have over thirty years of satisfied customers. There are three years of full financials and an up-to-date equipment list available to qualified buyers.
They work out of a 2400 square foot shop near surrounded by good game and water bird hunting in a smaller centre somewhat closer to Edmonton than Calgary.
There is easy access for both customers and shippers. Their lease renews yearly.
Inventory (extra) runs from 1.5 to two million dollars depending on the season.
About 60 percent of their supplies come from their top five suppliers. Product can arrive by truck, courier or by mail.
All staff require a valid PAL. There are trained back ups for all staff. The seller estimates the business can grow without hiring more staff.
Business happens year-round with hunting season as the busiest part of their year.
All equipment is good working condition as are their fixtures, sales counters, milling machines etc. Business could certainly increase without the need for new equipment. Staff has the training to maintain all the equipment.
They have a perfect WCB record. Warranty issues are handled by their manufacturers.
HuntCo has an office manager for the books and other admin functions.
They have regular customers with some going back 30 years or more. These folks constantly send referrals.
HuntCo has a healthy advertising budget supporting a good web site and mail order sales.
Three years of financial statements and a complete equipment list is available for qualified buyers.
Q. Why you are selling?
A. After over thirty years, I’m ready to slowdown and ponder retirement.
Q. In your words, what does the firm do?
A. We are a specialty sporting goods store with a good service component catering to those in need of a gunsmith.
Q. What functions does the owner perform? What talents will the new owner have to replace when you leave?
A. I do the overall management, product ordering, and back shop gun repair.
The buyer will need this skill plus good people management skills.
Q, How long will you stay after the sale to help in the transition?
A. Negotiable. No more than a year.
Q. Will you agree to a non-competition clause?
Q. Can you estimate what it would cost for a competitor to start up?
A. Well over three million then the cost of waiting to build up a customer base.
Q Where do think the business has a competitive advantage?
A. Location. We’re in God’s gift to duck hunters, good goose shooting, tons of deer with a smattering of moose. We are minutes away from a major Alberta lake with excellent boating and good fishing. This gives us access to year-round customers.
Interested? Next steps:
1. Fax / scan the non-disclosure document
2. Phone discussion
3. Release of financial information
4. Meeting with seller and tour of premises
5. Discussions that may lead to a deal
The information on contained in this document has been provided from sources believed to be reliable. You must seek independent verification of these facts through due diligence before taking any action based on this information.