Issue link: http://deals.uberflip.com/i/1533848
Leading Baseball & Softball Equipment Wholesale & Distribution - Located in Midwest w/ National Reach #68107 Sign NDA ► 2024 Revenue Est. $4,000,000 (4.1% growth) 2024 EBITDA Est. $205,000 (5.1% of revenue) DISCLAIMER: All information contained in this document has been provided by the subject company to Generational Equity and while believed to be correct has not been verified. Accordingly, Generational Equity makes no representations or warranties as to the accuracy and truthfulness of such information. The recipient hereof acknowledges that Generational Equity shall not be liable for any loss or injury suffered by said recipient in any way connected to the delivery by Generational Equity of this document. At all times Generational Equity and its affiliate network members is an agent for the seller and not for the buyer. Generational Equity's fees are paid by the seller. Joe Hige Senior M&A Advisor Email: jhige@generational.com Mobile: 248-982-6400 Generational Equity 3400 N. Central Expressway, Suite 100, Richardson, TX Fax: 972-392-1124 BUSINESS HIGHLIGHTS The Subject Company is a leading sporting goods wholesaler specializing in baseballs, softballs, and baseball equipment. The Company's operations include importing and wholesaling high-quality sporting goods to retailers and organizations across the country. With a focus on providing top-tier products and exceptional customer service to meet the needs of athletes and sports enthusiasts at all levels, the majority of revenue is generated from a mix of the Company's product offerings, which as a percentage of 2023 revenue, include Baseballs (64%), Softballs (26%), Protective Gear (3%), Bags, (3%), and Bats (2%). The Company has been able to transition its business to serve the Distributor/Retailer (66% of 2022 revenue), Indoor Training Facilities (31%), and Website Sales (3%) as customer markets, and Its top five geographic markets in 2023 include, Texas (12% of revenue), Florida (4%), Arizona (3%), California (10%), and Connecticut (4%). INVESTMENT BANK OF THE YEAR 2016 - 2017 - 2018 COMPANY STATS > Over 22 yrs of operations > 19,200 sq. ft. Facility > 4 FT & 1 PT employees > 525+ Clientele List > 81% Recurring Accounts > B2B & B2C Customer Markets > US Partnership (LLP) > Low CapEx Requirements INVESTMENT APPEAL • Strong Historical Sales Growth: Historical sales have grown from $2,659,000 in 2021 to $3,844,000 in the fiscal year ending December 31, 2023, representing a compound annual growth rate of 20.2%. Sales have grown consistently year over year in the historical period. • Rising Gross Profit Trend: Throughout the historical period, gross profit increased from 27.9% of sales in 2021 to 34.8% of sales by the end of 2023. The Company has been able to efficiently control its cost of sales after high growth, demonstrating its ability to maximize profitability potential. • Patented Products: The patented manufacturing process for the Company's softballs with raised seams ensures that the seams remain raised and do not flatten out even after extended use. • International Supplier and Contract Manufacturing: The Company leverages an extensive network of suppliers and contract manufacturers allowing the Company to access competitive pricing and specialized expertise. • Diversified Customer Base: No single customer accounted for more than 4% of revenue during the 2023 historical period. The diversified customer base helps ensure that the Company will not be significantly impacted by the loss of a single account. GROWTH OPPORTUNITY > Expand Custom Programs > In-House Direct Marketing > Streamline Warehouse > Expand Trade Shows > Product Line Expansion Historical Revenue Growth