Summit County CO Ski,Snowboard,Bike Rental/Retail

6/14/24 As of today, this business is under an LOI until November 30thth.  This still allows me to market it.  If I have your NDA and information, I will let you know if it falls through.  Thank you, Jeff  

The trailing 12 months revenues to March 31st, 2024, were 2.07M with 871K in normally adjusted earnings which is a 42% profit margin which is unheard of for retail/rental.  Their financials are cash based which is considered more conservative than accrual based because it eliminates bad debt and is easy to reconcile to their tax returns.  Their revenues and earnings grow every year including the 1st quarter of 2024.  The owner expects the revenue and earnings to continue to grow.

They consider themselves the best full-service Ski, Snowboard, Backcountry ski, snowshoe, and Bike Rental company in all of Summit County area.  They also have the most experienced ski and bike tune/repair shop employees, custom boot fitting, along with top brand clothing and sports accessories.  They also have a large selection of rental bikes, cross-country bikes,  e-bikes, and kid’s bikes. 

The owners state “Since opening our doors, we have earned a reputation as locals first choice for equipment rentals, outdoor gear, and repair services. We pride ourselves on providing individualized customer care, comfortable high quality rental equipment & a wide selection of outdoor clothing at competitive rates. Whether you are a long time local or planning a vacation, if you're searching for a sport shop, we'd love for you to give us a try and find out for yourself what makes us so popular”

A lot of their revenues are recurring because they have been a reasonably priced, main street, locally owned sports store for over 15 years.  Plus, they have a 4.6 star Google rating along with a 4.6/5 Facebook rating which means that they get a lot of out of state vacation business also.   This company’s ratings are very valuable to the new owner.  It takes years to get this many positive reviews and a model that works.  They have 15 employees in the Winter and 7 in the Summer and have very low turnover for key positions like the shop techs and managers.  The main owner who works 40 hours a week is retiring.   The main owners’ husband had his own separate business which he sold last year.  They are retiring and will sign a non-compete.

There are many ways to grow this business: Most retail businesses are square feet bound and grow by raising prices, which they have done and will continue to do with prices below the local ski resorts and their main competition.  Strongly recommend either a new lease with auto renewals every 2 or 3 years so the buyer has an option for a bigger space where they can add more of everything including new sporting good areas like electric bike retail which would be a great fit since they have the techs to assemble and tune them.  In a larger location, they can be the go-to place for all sports including fishing, camping, bike retail, and have room for more rental skis and bikes.   They do feel that they focus much more on winter and less on summer business, which the new owner can pay more attention to.  They also have a storage area next door which can be used for storage of additional rental equipment for peak periods.

You will get over 500K in current value assets including an estimated 450K in both bike, ski, snowboard, and snowshoe rental equipment.  Separately, they have 350K in inventory for sale at their cost.

The sales price is 2.1M plus inventory which is currently estimated to be worth over 350K at cost (not retail) but they understand that inventory left after each season will have to be discounted.  This is a fair price for a company with consistent growth, 42% profit margin, 871K Earnings, 4.6 star Google Rating, 500K in assets, and most importantly it is a very fun place to own.

This is an LLC that files their taxes as an S Corp and it can either be an Asset or Stock purchase.  It is priced as an Asset Sale but can be adjusted to a Stock Sale.  As an Asset Purchase, the business will be offered with the Seller keeping their cash and AR (which they rarely have as a retail/rental shop) and will be paying off AP and along with any other business debt including any Government loans.  This will qualify for an SBA bank loan for a qualified buyer.

Location: The business is in the main area of Summit County.