Buying Outdoor industry companies?

[EdP]

Strike while the iron is hot. Take the big money if offered, limit the time of a non-compete clause in the sale to 1 year, take some time off and start again. If the money is good enough the stress of making it again is gone.

 

[TheWhitetailNut]

Some more unsolicited advice from what I’ve seen professionally…

If the business is successful, provides well for your family and you enjoy it, don’t sell unless it’s enough money to not have to ever worry about money again.

I have a client who turned down a $5mil+ offer for his engineering firm just before Covid. Biz was cranking and he thought it was worth more. Fast forward a couple years, his market tanked (a lot of office RE construction), he lost contracts, lost employees, things turned into a nightmare and made him miserable. He hated it and wanted out. Went back to the same buyers as before and walked with about $600k and a job offer. He’s now a working stiff, has to answer to the man, has no autonomy, a restrictive non-compete, and is even more miserable. He wishes he had held on, restructured as needed and built the biz back up for a future sale. Worse yet, he (his wife) spent all the money on a home remodel and likely now will be working for the man for the rest of his working years.

Again, don’t sell unless it’s FU money. And if it is, strike while the iron is hot!

Oh gosh

A one stop shop for good precision rifle components would be a true disrupter. No one likes having to buy stuff from 6 different shops, all with different lead times and delivery dates.

Reputation of the ownership aside, The Extreme Group comes pretty darn close.

2 things they don't do would change everything.

 

[CorbLand]

Going to echo what a few people have already said. Selling doesn’t mean you have to retire. You could venture into something else you want to do without the worry of it having to pay bills.

I love to mow lawns and do basic maintenance on them. I would do it in a heart beat if I could make enough money March to September, not have to hire employees and only take the jobs I wanted. Give me retirement money at 45 and that’s what I would be doing.

I like my current job but it’s not what I love to do. It provides me money and ample time off when wanted. So I do it.

 

[SDHNTR]

2 things they don't do would change everything.

Follow hunting regulations? And not beat your own chest profusely? Sorry, couldn’t resist.

 

[sndmn11]

Go buy Heather's Choice

 

[Beendare]

Thats always the question, at least for me, when to sell a company that has been your personal identity for a long time knowing that the culture will change as soon as you sell.

I would say 2 things;
Trust your gut

And if you have many years left in you, it might be a good thing to sell and start another company better than the first- though non competes can restrict that.

My buddy sold his company for $400m…and then started another company right away.

 

[SDHNTR]

Thats always the question, at least for me, when to sell a company that has been your personal identity for a long time knowing that the culture will change as soon as you sell.

I would say 2 things;
Trust your gut

And if you have many years left in you, it might be a good thing to sell and start another company better than the first- though non competes can restrict that.

My buddy sold his company for $400m…and then started another company right away.

To the guys taking their payday and starting another company… first sock enough away in solid investments to care for your family’s future in perpetuity. Then parlay the excess (or use other people’s money) into your next venture. I’ve seen many guys go through the process once or twice with successful business transactions, get over confident, think they’re bulletproof, risk it all on the next venture and watch it all go down in flames.

Another story. Had a client sell his biz for $14m net in 2007. The day after the deal closed the wife hit him with papers (yes, terrible person) and took half. He took his half, started a new biz in a field he was passionate about, and then the 2008+ financial crisis hit. He lost it all trying to keep his baby afloat. He now works for a Non Profit and lives in an apartment. He coulda been just fine living off that $7mil forever.

 

[bluemaroon]

Having been on both side of PE buying/selling and currently working for a PE portfolio company, it's interesting to read the comments being shared here. Not that much different from what I've read here on hunting industry and what I've noticed in my own industry.

Also it's really interesting how many hunters you run across that are entrepreneurs. Building a business is extremely hard but if successful there are a lot of rewards (like getting to go on some really cool hunts!)

 

[IdahoSwede]

My brother and I are in process of building a fly fishing business. We had the same thought - we wanted to use our skills working in product strategy to let us spend a bit more time doing what we love. We launched last year with 1 product and it’s gone extremely well so far. We are dedicated to launching only products we feel are the very best in the marketplace so NPD is slow, but it’s a side gig right now, so we reinvest all cash. It’s mostly just fun to grow and learn a lot along the way about how to create a brand, manage inventory, build retail channel while still focusing on direct sales. Still a lot to learn and improve on but it’s been fun. No idea where it will end up but we have a great product pipeline, just requires time and money like everthing else haha.

 

[D S 319]

sounds like a good problem to have none the less.