Iconic Cycling Shop - $130k Net Profit + $50k in Inventory

Encinitas, CA (San Diego County)

Iconic Cycling Shop - $130k Net Profit + $50k in Inventory
Contact Seller

Asking Price: Get Financing: $175,000

Cash Flow: $130,000

Gross Revenue: $600,000

EBITDA: $130,000


Inventory: $50,000

Established: 1978

Iconic Cycling Shop - $130k Net Profit + $50k in Inventory

Get Financing Save Print Share Valuation Report

Business Description

$125k in Time, Klein, other high end (CF) frames also available below wholesale

The owner, is prepared to sell the shop for $175,000, which will includes roughly $50,000 in general inventory. In addition, he continues to retain approximately $125,000 of “special inventory” consisting of “Time” & “Klein” bike frames that he owns at significant discounts given his container-sized purchases. He is prepared to sell any or all of the “special inventory” at his highly discounted cost.

Although a new owner isn't obligated to purchase any of this "special inventory", doing so would permit a them to enjoy substantial profit margins and remain highly competitive. The purchase of any portion of this "special inventory" can be done on an incremental basis (Not necessarily at the time of purchase). The business currently generates nearly $600,000 in sales and $130,000 in net profits, in spite of Fred scaling back his hour’s considerably in recent years.

Located in the picturesque beach community of Leucadia, in the city of Encinitas is a cycling business that has endured and prospered for the past 40-years. The current owner, Fred, has operated the business for nearly 3-decades. He’s now ready to retire and pass the business on to a highly energized new owner.

Fred was perceptive regarding the competitive challenges and risks the internet would present to the retail cycling industry. He recognized it represented a game changer for the industry and sought a way of insuring Leucadia would continue to remain a viable retail business in the years to come. While there will likely always be a place for a brick and mortar bike shop, given the need for repairs, maintenance and professional advice, product sales and accessories were being put under intense pricing competition from the internet.

Given his years in the industry Fred recognized that frame manufacturers had periodic cash flow pressures given their long sales cycle from design, to manufacturing, to sales to bike shops to finally getting paid. He took advantage of manufactures frequent need for cash by offering them immediate payment on large orders of highly discounted frames. Using available capital he had accumulated, Fred would buy frames by the container from top brands like “Time” & “Klein” for pennies on the dollar. This has enabled Fred to price his fully customized and built-out bikes at highly competitive prices all while working for great margins.

Leucadia continues to enjoy high margin new bike sales creating new loyal clients that returns again and again for tune-ups and accessories, etc. Given frame manufactures propensity to marginally decrease quality in order to maintain pricing, Fred’s inventory is not only priced well below replacement, but is also generally superior in quality to this year’s models.

A new energized owner can build on Fred’s years of hard work and large loyal client base. There are clearly things a new owner can introduce in order to grow the business from its current status. Over the past few years Fred has begun to scale back his hours. He also admittedly has not used social media or re-engineered an updated website. He’s delayed introducing increasingly popular motorized bikes, although he does do a robust business in high end tandem banks.

Please refrain from contacting the owner directly. If you would like to learn more about this opportunity please submit a request for an NDA and we will get all available information to you and facilitate any data requests.

It’s difficult to envision a more idyllic location to own a bike shop than in the cycling inviting community of Leucadia/Encinitas!

Detailed Information

Included in asking price
Reason for Selling:
Business Website:
Contact Seller

Contact the Seller

Contact Seller Loading

Fred Mercuro

Business Listed By:
Fred Mercuro

Pacific Business Advisors

Show Phone Number

View My Listings

Listing Statistics

Saved This Listing:
Days Active On Site:
Appeared in Search:
Listing Detail Views:

Ad#:1541771 Report an issue with this listing

The information in this listing has been provided by the business seller or representative stated above. BizBuySell has no stake in the sale of this business, has not independently verified any of the information about the business, and assumes no responsibility for its accuracy or completeness.
Read BizBuySell's Terms of Use before responding to any ad.

Similar Listings