Listing ID: 83857

Business Overview

Launched in 2009, this industry-recognized bicycle manufacturer supplies a mix of bicycles, parts and accessories for the everyday rider, focusing on design, durability and style. These products look great and are fun to ride.

The target market are urban cyclists or people that are looking to ride a bike for fitness and fun offering a complete range that a consumer could purchase and own multiple bikes. The brand that is known for our quality and reliability.

Products are sold through multiple channels including bicycle dealers, distributors, their own eCommerce store, and Amazon. We are established vendors to the largest bicycle distributors in the United States and Canada. Globally, products are sold in the US, Canada, Chile and Europe.

The business is positioned extremely well for growth, specifically in in e-commerce an Amazon sales, but also through traditional channels. The owners recently launched new products and are expecting their growth to continue with a 2022 forecast of $3.4 million in revenue and $400,000 in net income.

The company has a strong foundation of raving fans with a 25,000 member email list, 10,500 Instagram followers, and 30,850 Facebook followers. Their social media is primed to be taken to the next level.

In addition to the full-time ownership, the company employs two staff members and one outside contractor. Cumulatively, these 3 people work less than 60 hours per week. The business could be relocated with just a couple hires or, very realistically, run remotely.

Financial

  • Asking Price: $1,600,000
  • Cash Flow: $505,777
  • Gross Revenue: $2,990,811
  • EBITDA: N/A
  • FF&E: N/A
  • Inventory: $500,000
  • Inventory Included: N/A
  • Established: N/A

Additional Info

The transaction shall not include inventory valued at $500,000*, which ins't included in the suggested price.

Why is the Current Owner Selling The Business?

There are all kinds of reasons why people decide to sell businesses. Nonetheless, the genuine factor and the one they say to you might be 2 entirely different things. For instance, they may state "I have a lot of various commitments" or "I am retiring". For many sellers, these reasons are valid. However, for some, these may simply be justifications to attempt to hide the reality of altering demographics, increased competition, current reduction in incomes, or a range of other factors. This is why it is very essential that you not depend totally on a vendor's word, however instead, use the vendor's response along with your general due diligence. This will repaint a much more realistic picture of the business's existing circumstance.

Existing Debts and Future Obligations

If the current entity is in debt, which lots of companies are, then you will have reason to consider this when valuating/preparing your offer. Lots of operating businesses borrow money with the purpose of covering points such as stock, payroll, accounts payable, and so on. Remember that occasionally this can suggest that profit margins are too thin. Numerous organisations come under a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may likewise be future obligations to consider. There might be an outstanding lease on equipment or the structure where the business resides. The business might have existing contracts with suppliers that need to be satisfied or might lead to charges if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do operating businesses in the location draw in brand-new consumers? Most times, businesses have repeat customers, which create the core of their day-to-day profits. Specific factors such as new competitors growing up around the area, road building and construction, and also employee turn over can affect repeat customers and negatively affect future earnings. One crucial thing to consider is the placement of the business. Is it in a very trafficked shopping center, or is it hidden from the main road? Undoubtedly, the more people that see the business regularly, the better the opportunity to build a returning consumer base. A last idea is the basic area demographics. Is the business placed in a densely inhabited city, or is it located on the outside border of town? Exactly how might the local mean home earnings impact future earnings prospects?