Relocatable Extreme Sports Distributor With Great Potential
Business Type:
Corporate Businesses, Retail businesses
Advent Business Sales is delighted to have been instructed to offer to the market this extremely well established “extreme sports equipment distributor”, which has been increasing in successful trading since 2005.
The current vendor has been in ownership since its inception and is reluctantly selling due to the fantastic and almost overwhelming growth of the brands they have to offer and their unfortunately perceived inability to take this further, due to capital/time investment that is required.
The owner feels therefore that the company would sit very well with one of the larger sports distribution companies in the UK who have both the infrastructure, capital and stockholding facilities to do these brands justice.
The business was set up by the vendor after a number of years racing downhill mountain bikes on the world cup circuit. They gained the rights to distribute ‘Electric Visual’ to the UK mountain bike and MX markets, the range of brands grew quickly as ‘solid bikes’ and ‘reverse components’ and more recently ‘twenty6 products’ were added to the portfolio.
During this time the company built an excellent reputation with their dealers, through their efforts to promote the brands and ensure a high level of support for their efforts. The company has a strong relationship with the extreme sports press, ensuring excellent coverage for the products in the media. At the start of 2009, the company was granted full rights to the UK market for the total range of ‘Electric Visual’.
Included in the sale are all stock and rights to distribute the following brands:
Solid Bikes:
A complete mountain bike company originating from Germany. The company has not had the resources to push this
brand hard so success at present has not yet occurred. This brand has been growing internationally and with the right support could grow well in the UK.
Reverse Components:
Cycle components arm of solid bikes offering components made of aluminium and carbon to the highest standards with full two year guarantees.
Electric Visual:
Snow goggles / sun glasses / soft goods / prescription glasses. Electric are a massive global brand but have not reached their potential in the UK. This is due to the poor distribution in the UK during the
brands formative years. Since taking this on in 2009, the company has made up a lot of ground and has made good progress with this, and the growth rate and brand awareness is now very strong.
Twenty 6 products:
High end mountain bike components aimed at the top end of the competitive market. This will never be a massive brand due to its niche nature of products but it fits in nicely with the rest of the brands.
The company has already paid for stands at the following shows:
Freeze: http://www.thefreezefestival.com
Board Masters: http://www.relentlessboardmasters.com
Scotland Ski Show: http://www.natives.co.uk/scotlands-show/index.htm
All these will be included in the sale price, so the buyer can exhibit at these events. Total cost of this is about £8,000.
The company will provide full information of all dealers, order history and all the records of all dealers spoken to as well as full records of all email conversations with dealers to facilitate running of the network quickly.
As well as all that has been shown to be on offer, the company will provide full contact details with all sponsored athletes working across the extreme sports fields from wake boarding, snow boarding, skiing, motocross, mountain biking, surfing and many more with information of the deals they are on.
The company has excellent relationships with all the key sports press.
The aforementioned products are scheduled to feature in many magazines over the next six months and the company will ensure continuity during the hand over period.
The company web site will also be included if required. The business will be sold free of debt.
The owners of the company would like to continue to work for the business, perhaps as an agent handling the brands on a commission basis, for a certain area in the UK. Thus providing continuity but allowing the brands to grow without being restricted by access to finance.
The future of the distribution business on offer is extremely bright, but the present owners do not have the finance required to support it and help it grow. A larger company would benefit greatly by all the effort that has gone into the brands in previous years.
Example of order now placed:
Electric Visual is all done on pre-orders (no stock risk, unless wanted). The company has pre orders in the October drop for snow goggles = £36,000 + VAT and are still being added to.
This is what the shops will pay the business. The order costs £23,768.60 at today’s exchange rate. Profit therefore of £11,884.30 already secured with no risk to the buyer. Goggles represent only one aspect of the Electric brand.
There is massive potential for their sunglasses, prescription glasses and their soft goods range which is massive, bigger than the goggle market with excellent margins.
The Solid/Reverse/Twenty 6 brands are all mountain bike specific but the supply is good, margins are good and with the right distributor who can hold stock and has a network of reps working in this field, there
are good prospects for growth that the present company cannot tap into with their time/resources.
REF: 9611SK
An Energy Performance Certificate will be made available upon request of further details where one is required for the business premises.
Our client’s extreme sports equipment distribution business is at present located in Northern Cheshire. This is purely due to the location of the main director’s domicile and as such is fully transferable anywhere in the UK, as a stand alone business, or easily integrated into an existing company.
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