Established in the early '80s, this company started out simply: selling their signature hand-made, high quality custom sports clothing. Based in Southern California, they have strong partnerships with retailers, online sellers, and both domestic and international distributors. They have fantastic goodwill among the hobbyist and professional sports community. The business operates with great gross margins; the cost of goods runs on average of 20%.
This is the opportunity; the founders have neither marketed nor modernized. While technically they've expanded their product lines, they didn't leverage their goodwill through aggressive marketing to fully expand into these segments. Internally, their process runs much the same as it did back in the '80s. Not only is the manufacturing process outdated, they've allowed the cost of labor to climb to 50% of revenue.
Fresh ownership will immediately see the potential here to build on the existing brand and solid goodwill. Update the manufacturing process, lower the overhead costs, and expand the other product lines aggressively. If you're in a similar industry, rollup the line into an existing operation and reduce overhead even further. Ownership has never been growth minded; they've always been satisfied being a niche manufacturer. While this has built fantastic brand reputation, it has limited their growth.
The popularity of this leisuretime activity continues to rise. This is a fantastic deal in a growing space, as most of the purchase price is the assets and equipment (valued at $150K). Don't let this one slip away. Make your offers today and acquire this great brand!