Gross Revenue: $1,200,000

Cash Flow: $196,000

Cash Flow Comments: EBITDA

Our client, established in 1978 as an S-Corporation in the state of Iowa, specializes in the sale and service of sporting goods equipment, apparel and shoes. The company has a diverse line of products, in addition to offering team sales and a variety of services to maintain sports equipment. The company’s product line consists of shoes (41% of 2006 revenue), sports equipment and services (22%), clothing (25%), and team related purchases (12%). The Company’s customers consist of general retail (53% of 2006 revenue) high schools (23%), university students (17%), teams (5%), and sports clubs (2%).
The largest customer in 2006 accounted for only 7% of sales.

The company leases 4,230 square feet of retail, office, and storage located in a local mall. The third party lease was established in 1978 and expires in 2009. In addition to the owner, who works 5 hours to 20 hours per week, there are 4 full time and 10 part-time personnel.

The owner has enjoyed building an innovative and successful organization. At this time, our client would like to pursue possible retirement, as well as find a suitable acquirer that can guide the company to reach its full potential. The owner is agreeable to working with new ownership post transaction to ensure a smooth transition and business continuity.

Highlights include:

• Solid reputation within its marketplace with a 29+ year history providing top name brand products
• Authorized dealer for numerous vender products with an average relationship of over 20 years
• Diverse customer base consisting of retail (53% of 2006 revenue) high schools (23%), university students (17%), teams (5%), and sports clubs (2%)
• The company’s gross profit percentage exceeded the industry average the last three years