Back to Listings Conservative Apparel Products Brand - Poised to Scale Before 2020 Election

Asking Price : $2,500,000

Annual Gross Revenue : $6,229,160

Annual Net Profit : $1,293,380

Profit Multiple : x1.93

Inventory Value: N/A

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From the Broker

For sale is a strong conservative brand with a loyal and passionate fanbase and three years of history. The business specializes in uniquely designed apparel for the more conservative markets of politics, 2nd amendment advocates, first responder services (such as military, police and fire fighters), sports and religion. Each of these areas are highly correlated so the business gets many customers who buy across all niches.

With the upcoming 2020 US election, this business is poised to either grow naturally or scale rapidly depending on a new owner's desire. And no matter which way the election goes, this passionate market will continue to buy these products whether in support or defiance. For the right owner, this business has huge short term and strong ongoing potential.

NOTE - Financials shown are TTM. Run rate based on the last 6 months is $8mm Revenue and $1.9mm EBITDA.

Business did $1.09mm in revenue and $499K in profit in April 2020. May 2020 hit over $1mm in sales as of 5/18 and is on pace for a 50% increase over April.

Highlights & Key Assets:

o Well established brand in the conservative niches primed for the election season and beyond. Strong brand presence and brand loyalty is already in place.

o All products are branded with company logo and have been selling as such.

o 200K+ followers on social media.

o 140K customer email list.

o Diversified traffic and cross platform selling (Facebook, Google ads and search, Amazon, affiliates).

o Strong relationship with a top conservative media company (no other conservative ecommerce site has such a relationship).

o Fast and reliable suppliers mostly based in the US.

o Trademark for brand (in process).

o All original art designed can be transferred and defended under the DCMA law.

o Highly optimized website specifically made for the target customer audience.

o Facebook pixel data is very valuable.

Market Research:

The conservative market is massive:

o 63 million people voted for Trump and 30% of all the US identifies as a Republican.

o Gun owners in America are about 43% of all households and over 5 million are registered with the NRA (2nd amendment niche).

o 65% of Americans see themselves as Christian.

o Millions of people currently in the service niches (military, police, firefighters) and their supporters.

Growth Potential:

From now until the 2020 US election there will be a spike in the passion levels of conservatives. The owner has taken steps over the last year to get ready for this next time period. The brand is strong, relationships are strong, and customer base is loyal. This is something they haven't truly achieved until recently.

Regardless of the outcome of the election, they see massive potential in the conservative area. If President Trump wins, the continued effort supporting him and of conservative values, makes for easy direction of the brand. If he loses, the brand shifts to an opposition position and again goes after supporting conservative values like protecting the 2nd amendment, which will “be under attack” at that point.

Either way, now that the brand is established and trusted the business is in great position to grow and continue to focus on profit. Additionally, there is an opportunity to expand wholesale distribution.

Owner has a four-year growth plan that they will share with the new owner. Business will likely do best with a new owner that either has a stream of traffic they could tack on or is willing to pay an agency to run advertising.

Support/Training:

Full support and training will be provided. This is negotiable depending on your needs.

Reason For Selling:

The owner is a partner and heavily invested in a growing software business which requires travel and takes up much of his time. His burning goal is to focus on his software business and be able to spend time with his infant daughter and wife. Owner is open to advising on this business longer term just on a limited basis.

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Sale Pending: No

First Seen: Fri, Mar 27th 2020

Last Updated: Fri, Oct 9th 2020


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