For sale is the event management company based in TX. The company’s business model is to generate sponsorship and entry fee income from a series of different races in the TX market for runners of all skill levels. The business capitalizes on the increasing and profitable popularity of running and fitness, combined with savvy digital marketing and event-based sponsorship.
For buyers looking to monetize the $31 billion market for fitness,1 the acquisition is an ideal fit for:
- A strategic that manages road races in other markets;
- A strategic that makes running and fitness products like apparel, gear, or wearables;
- An investor looking for predictable cash flow, including those who don’t want to be involved in day-to-day management.
The company leverages Americans’ passion for fitness and running: last year +64 million people participated in some form of running, and +17 million ran in an organized race event. Nearly half of these racers are Millenials — now the largest cohort of the population – as running is increasingly popular for them.
Catering to this passionate audience, the company manages eight events held from September through May, while spending the summer months preparing for the following series and selling corporate sponsorships.
The business cast a wide demographic net to pull in both the serious and beginner runners:
- One of the company’s race series (A) consists of five races featuring a family friendly atmosphere suitable for all ages and skill level including 5k, 10k, and kids 1k runs.
- The company’s other race series (B) consists of three half-marathon races accompanied by a 5k and kids 1K event to attract families and elite athletes alike.
- Both Series now offer a “Virtual Race” option allowing runners to participate even if they are away from the area. Virtual Racers register digitally and run the required distance within three days of live event – and still get the t-shirt and medals.
- Both Series pull in 501 (c ) charities and their corporate backers, where entire teams of runners participate to raise money for their desired cause.
Once consumers participate in an event, the company harnesses savvy digital marketing and social media to build loyalty and connection. There are over 33,000 registered users in the company’s marketing database. On average, 30% of runners for the company’s race series return to participate in a subsequent race. However, at the start of 2018, one of the race series saw 40% repeat runners.
Having built up this successful business, the founding owners are selling in order to focus on other interests. Transferring to the new ownership will be the assets of the company plus the intangible value of the company’s strong reputation and goodwill for the two race series, which serve as a blueprint to scale both within TX and to other geographic markets.
- A well-managed events company with great reputation of unique quality events
- Large repeat customer base who attend multiple events per year and year over year
- Strong Margins
- Well branded races with ability to scale
- Management (Race Director and Race Coordinator) in place to run the races
- Low owner involvement required for day to day operations
The company is wholly owned by its founding partners. The asking price is $750,000.00
|Years in Business||4||FF&E||Equipment List Available|
|Employees||1 Race Coordinator
1 Race Director
|8 races per year|