Outdoor & Active Lifestyle M&A

Good brands are in short supply

Buyers told us they see fewer outdoor brands for sale than they want to buy. That puts a well-run brand in a strong position.

Brand groups are buying

Brand groups backed by private equity in hunting and fishing told us they plan to add more brands. Some will look at an add-on of any size if it fits.

Buyers are closing deals

Platinum Equity bought GSM Outdoors. The private equity groups and family offices we talk with are also buying outdoor brands. We know which of them fit your brand and how to get them competing for it.

An advisor who knows the buyers

Hunter Staniske hunts from a Wisconsin tree stand every fall and spends his summers on the water. He talks with the private equity groups, family offices and brand consolidators buying hunting, fishing and outdoor brands. He knows who is buying, what size companies they want and what they pay.

A sale that stays on schedule

Hunter works on each step of the sale, from buyer outreach through diligence and closing. Cornerstone sales take 6 to 8 months on average; the industry average is about 11 months.

Advisors who have sold outdoor companies

Chuck Dallas advised Howard’s Cams and Competition Products, an Oshkosh, Wisconsin maker of performance auto parts. Cornerstone has also sold Hostel Shoppe, Inner Harbor Marina and Jolin’s Marine Center.

Your season built into the value

Our Real Market Analysis recasts your EBITDA, compares your margins with leisure and recreation benchmarks, and reviews the inventory and working capital your busy season needs. Get the RMA white paper.

Companies

• Hunting and fishing brands, including tackle, bait, decoys, blinds and optics
• Camping and overland gear brands
• Shooting sports and firearm accessory brands
• Golf, cycling and racquet sports equipment brands
• Component suppliers to premium sports brands
• Outdoor storage, racks and vehicle accessory brands

We also work with:

• Boat dealers, marinas and marine service companies
• Powersports and motorsports companies
• Outdoor retailers and venues
• Fitness and sports nutrition brands

Owners

• Owners who want to know what their business is worth today
• Owners ready for a partner to grow the brand
• Family owners deciding what comes next
• Founders planning their retirement
• Owners holding an offer from a brand or dealer group

A brand people ask for by name

Buyers want one of the top two brands in its category, with loyal customers who buy each new product. They see these brands as more resilient than volume brands.

Sales in more than one place

Buyers told us they get cautious when more than 25% to 30% of sales run through one channel. Selling through your own website and specialty retailers widens the pool of buyers.

No retailer over 25% of sales

Buyers want any one retailer under 25% of revenue. Above that, the retailer controls your pricing, and buyers price in that risk.

Margins that hold

Many buyers told us they pass on brands with EBITDA margins under 10%. Margins near 20% draw the most interest. If your margin is lower, our Real Market Analysis compares it with industry benchmarks and shows where to improve it.

Steady growth

Buyers pay more for steady growth year over year than for one big spike. A spike year looks like a fad and is hard to verify. Clean books help buyers trust the numbers.

Products people buy again

Bait and other consumables bring customers back every season. Buyers pay for that repeat business.

A focused product line

Buyers prefer a brand that serves one customer in one category. A company that sells baseball gear and fishing rods is harder to value than one that does either well.

Sourcing and cash under control

Buyers look closely at where your products are made and how much cash sits in overseas orders paid for months ahead.

Hunter Staniske

Senior Associate

Hunter focuses on outdoor and active lifestyle brands at Cornerstone. He has helped sell more than 20 companies, with more than $230 million in total enterprise value, across manufacturing, industrials, specialty contracting and professional services. He meets regularly with buyers in the hunting, fishing and active/outdoor space. He earned a Bachelor of Business Administration, with a minor in risk management, from the University of Wisconsin Oshkosh, where he was an All-American baseball player.

hstaniske@cornerstone-business.com · 920-436-9890

Full bio · LinkedIn

Charles Dallas, CPA

Vice President

Chuck advised Howard’s Cams and Competition Products, an Oshkosh, Wisconsin maker and distributor of performance auto parts, on its sale to a private investor. He works with owners on valuation, buyer outreach, negotiations and closing. He is a Certified Public Accountant with board experience at CoVantage Credit Union and ThedaCare.

cdallas@cornerstone-business.com · 920-436-9890

Full bio · LinkedIn

85%

Close rate

5-year average, vs. 53% for other M&A firms and 20% for owners who sell without an advisor*

24 to 26%

Premium above target

average increase above the target price

8 to 10

Offers per deal

average indications of interest

25 years

In the market

advising lower middle market business owners