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Golf Ball Recovery and Resale Operation
A golf ball retrieval and resale business with auto-renewing recovery contracts across more than 250 courses, two retail locations, and in-house refurbishment.
Business Highlights
- Two-year auto-renewing retrieval contracts across more than 250 golf courses
- Two retail locations above 3,000 sq ft, each with in-house refurbishment facilities
- Graded name-brand inventory sourced through retrieval and buyback rather than wholesale purchase
- Sells through ecommerce, wholesale, international and walk-in channels
- Family owned and operated, with established supply and grading processes in place
Considerations / Questions to Ask
- The seller is offering 35% initially with the rest acquired over time. Confirm what control, governance and exit terms attach to a minority stake before anything else.
- Revenue is over $3M but SDE is under $500k. That is a thin margin for a business with two leased retail sites. Understand the cost structure.
- SDE is $457k but EBITDA is $249k. A buyer who is not working in the business is buying the lower figure.
- How many of the 250 course contracts renew automatically in practice, and what is the actual attrition rate?
- Retrieval work involves diving in water hazards. What are the insurance, licensing and labour arrangements?
Opportunities
- Auto-renewing contracts across 250 courses are a genuine supply moat, and supply is the hard half of this business
- Inventory is recovered rather than purchased, so gross margin is structurally better than ordinary retail
- Ecommerce and international channels scale without adding retail square footage
- A staged buy-in lets a buyer learn the operation before committing full capital