Seeking capital for acquisition.
I'm helping a friend with a small business acquisition (indoor shooting range) and wanted to post the deal to this forum. This situation is comparable to a self-funded search deal. The purchase price of the business is below asset value. Included in the deal is a) a warehouse (real estate) valued at $250,000 - $300,000 on a standalone basis, b) equipment related to the shooting range (owner spent over $300,000 on the buildout), c) an inventory of firearms, and d) goodwill such as membership agreements. The warehouse was converted to a shooting range by the seller in###-###-#### The business was unprofitable in###-###-#### first year of operations) and###-###-#### Covid), however is approximately breakeven in###-###-#### The seller has not been able to focus on this business for the past 2 years due to his personal situation and the business is currently run by a part-time employee. There are several drivers for future growth and profitability: 1. One of the principals (who will sign the SBA loan guarantee) is an air force veteran with deep operational experience. A second principal is a licensed gun instructor who currently works at a nearby gun shop. Together they are well positioned to grow the business. 2. The principals strategy includes adding a retail sales location inside the gun range selling ammo, guns and accessories. One of the principals is currently a salesperson at a nearby gun shop and has existing supplier relationships. 3. A new community center (including a new police department) is scheduled to be constructed on land adjacent to the shooting range. The additional traffic from this development will substantially increase the exposure of the business. There is also an opportunity to sell range time to the police department given the proximity of the business. At a minimum, we believe this development directly next to the business will substantially increase the value of the real estate. Total project cost is approximately $400,000 ($340,000 for the real estate + 60,000 working capital). We expect to finance approximately 80% of the project cost with an SBA loan. The principals will sign a personal guarantee on the loan. Total equity required is in the $60,000 - $100,000 range. Please DM me for additional details if interested.

industry
Business Services
location
USA
revenue
$50,000
To download teaser or contact poster, please sign in.