S&M / Fit Bikes…For Sale?

I leave my phone on silent for good reason. The Our BMX group message was blowing up this morning with a link to a site (below) with a for sale listing of a BMX business that was unmistakably describing “The Building” aka S&M Bikes and Fit Bike Co. While all the facts lined up—the company size, manufacturing ability, and even the backstory of the owner—pointed towards one place, I still wasn’t sure if it was legit. Is this site real? Is this ad real? Is Moeller trolling the world of BMX (again)? You really never know…

If it is real, who could buy it? Could anyone actually run the legacy Moeller has built over the last 34 years? What effect does this have on BMX as a whole? So may layers of questions began running through my head… Just as I was about to text Chris Moeller for confirmation and comment, he beat me to the punch: “We might want to push that podcast forward a bit, hah. My phone is blowing up.”

So…is S&M and Fit for sale? I haven’t actually asked, but maaaaybe? All I know for sure is that Chris will be sitting down for an Unclicked Podcast tomorrow and that will be the first question I ask… Stay tuned.

From Bizbuysell.com

International BMX Bicycle Wholesaler & Manufacturer w/RE
This company is a cultural icon within the action sports world of BMX Bicycles, manufacturing bikes, frames, forks, and bars at their plant in California, and is a wholesaler with clients across the USA and internationally. The company has grown 29% over the last 3 years and boast over $8.7M in sales and SDE of $1,011,147, and $901,147 in EBITDA.
Valuation / Price Ranges

1- Income/Market Approach = $3,686,219 + AR $953,477 = Asking Price of $4,639,696 (includes Accounts Receivable, does not include cash, & includes $1.35M in inventory)
2- Asset Method = $5,202,286 (Includes fixed assets, plus inventory, and AR. But does not include cash, which is available).

Inventory Base = $1,341,281 (included) and varies up to $3,000,000 depending on the time of year and business cycle.

Cash (Not Included) – $1,384,867 – available for purchase for working capital needs, in addition to the asking price.
The company was started by the current owner and founder over 30 years ago to create and design BMX bikes that could stand up to the hard riding punishment delivered by the best BMX riders in the world. Since then, the same rider and founder has built the company into an international powerhouse, with one of the best brands and products in the action sports world of BMX riding and racing. Since the company was founded, the action sports world and specifically the world of BMX has exploded on the scene, and this company has bene at the center of that expansion, and is loved and admired by the customers and end users worldwide.

Since the company was started, they have grown into a vertically integrated multi-national corporation with a strong presence and customer base in the wholesale bicycle channel, and bicycle manufacturing industry.

The owner owns the building as well, in a highly desirable location in CA, valued at $3.2M, which is available for purchase in addition to the business.
There are a couple competitors to this business, but few that have a manufacturing component as well, which differentiates this business from their competition.
Two immediate growth opportunities for this business.

1- Expansion into other segments of the bicycle industry. Examples; mountain bikes, electric bikes, etc.

2- Opportunity for a corporate leader to take the reins of sales, operations, and financial strategies, which under new leadership could have an immediate impact on the company’s profitability.