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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