Inside a $3.4M Rodeo Supply Business

In this episode the hosts break down a rodeo supply retailer for sale in Arizona, debating whether a passionate lifestyle buyer can make the numbers work despite expensive inventory, real estate, and questionable deal structure.Business Listing – https://www.bizbuysell.com/business-opportunity/rodeo-sports-retailer-w-impressive-geographical-coverage/2176067/Welcome to Acquisitions Anonymous – the #1 podcast for small business M&A. Every week, we break down businesses for sale and talk about buying, operating, and growing them.Looking to build a professional website in minutes? Try Wix: https://wix.pxf.io/c/6898629/3115214/25616?trafcat=templateHubSpot is the backbone for how businesses scale without chaos. Try them out here: https://go.try-hubspot.com/OeG9VrSubscribe for more episodes: https://www.youtube.com/@AcquisitionsAnonymousPodcast?sub_confirmation=1Subscribe to our Newsletter: https://www.acquanon.com/newsletter💰 Sponsored by:Inzo TechnologiesWhen you acquire a business, you also inherit years of IT and cybersecurity risks. Enzo Technologies helps acquisition entrepreneurs uncover technology issues during due diligence and stabilize IT after closing with a buyer-operator perspective. Get a complimentary IT risk audit and 30-day action plan at https://enzotechnologies.io and mention Acquisitions Anonymous.Bedrock Quality of EarningsBuying a business without verifying the financials can lead to expensive surprises. Bedrock Quality of Earnings combines experienced Big Four leadership, operator-backed expertise, and AI-powered analysis to help buyers validate earnings before closing. Learn more at https://bedrockqoe.com.This week the Acquisitions Anonymous crew evaluates a rodeo sports retailer in Maricopa County, Arizona listed for $1 million with $3.4 million in annual revenue and $387,000 in Seller's Discretionary Earnings (SDE). At first glance, the valuation appears attractive at under 3x SDE—but the deal quickly becomes far more complicated once the hosts discover that approximately $1 million of inventory and $1.3 million of real estate are not included in the asking price.Key Highlights:- $1M asking price with $387K SDE, but another $1M inventory and $1.3M real estate dramatically change the economics.- Two-week seller training period raises significant concerns about transition risk.- Discussion around inventory valuation, financing challenges, and whether SBA lending is even feasible.- Tim Delaney shares practical advice on negotiating unrealistic listings and evaluating seller motivation.- The hosts unanimously give the deal a thumbs down, unless you're a lifelong rodeo enthusiast seeking a lifestyle business.Subscribe to  weekly our Newsletter and get curated deals in your inboxAdvertise with us by clicking hereDo you love Acquanon and want to see our smiling faces? Subscribe to our Youtube channel.Do you enjoy our content? Rate our show!Follow us on Twitter @acquanon Learnings about small business acquisitions and operations.For inquiries or suggestions, email us at [email protected]