suited for speedsuited for speed files/mp_03.07_rev.pdf · strengths for the entrepreneurial buyer...

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SUITED FOR SPEED SUITED FOR SPEED SUITED FOR SPEED SUITED FOR SPEED Motophoria offers a Buyer an exceptional value and opportunity to acquire a fully branded, extensive product line of high performance apparel and accessories for motorcycle and related powersports enthusiasts and riders. Offered Exclusively by: CenterPoint Business Advisors, Inc. $ 199,000 with up to 75% financing www.cpointadvisors.com Corporate: The RiverWatch - Littleton, NH 03561 Regional Offices: Lexington, MA 02421 Moultonborough, NH 03254 888.988.0999

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Page 1: SUITED FOR SPEEDSUITED FOR SPEED Files/MP_03.07_Rev.pdf · Strengths for the Entrepreneurial Buyer For the Entrepreneurial Buyer—Motophoria offers a highly cost effective method

SUITED FOR SPEEDSUITED FOR SPEEDSUITED FOR SPEEDSUITED FOR SPEED

Motophoria offers a Buyer an exceptional value and opportunity to acquire a fully branded, extensive product line of high performance apparel and accessories for motorcycle and related powersports

enthusiasts and riders.

Offered Exclusively by:

CenterPoint Business Advisors, Inc.

$ 199,000 with up to 75% financing

www.cpointadvisors.com

Corporate: The RiverWatch - Littleton, NH 03561 Regional Offices: Lexington, MA 02421

Moultonborough, NH 03254 888.988.0999

Page 2: SUITED FOR SPEEDSUITED FOR SPEED Files/MP_03.07_Rev.pdf · Strengths for the Entrepreneurial Buyer For the Entrepreneurial Buyer—Motophoria offers a highly cost effective method

Table of Contents

Background Page 3 Industry Overview Page 3 Types of Buyers Page 4

Strengths for the Distributor Buyer Page 4

Strengths for the Powersports Dealer Buyer Page 4

Strengths for the Entrepreneurial Buyer Page 5 The Offering Page 6 Purchase Price with Seller Financing Page 6

Area Information & Links

www.motophoria.com www.mic.org

(Motorcycle Industry Council) www.whitehorsepress.com www.americanmotor.com

Page 3: SUITED FOR SPEEDSUITED FOR SPEED Files/MP_03.07_Rev.pdf · Strengths for the Entrepreneurial Buyer For the Entrepreneurial Buyer—Motophoria offers a highly cost effective method

- CONFIDENTIAL -

Copyright - CenterPoint Business Advisors, Inc.

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Background of Business Opportunity/Offering

For the past 6 years the founder and charter investors of Motophoria committed over $2 Million to market research, product development, branding, design and sourcing, sales, marketing, and distribution in order to build the foundation of a national brand. With this accomplished, and the current owner unable to continue, Motophoria is seeking a qualified and capable buyer to continue as a top-notch provider of dynamic apparel for the motorcycle industry. Motophoria is an early stage company that has established an initial dealer distribution network. While past sales have been limited, Motophoria has developed and served multiple dealers and distribution points throughout the United States. It is estimated that the existing product designs can be sourced in the future for a number of months. The Motophoria brand targets male and female motorcycle enthusiasts between the ages of 30 and 50+. It consists of over 60 distinct products including: jackets, pants, suits, gloves, and boots. The complete product line runs across 6 rider segments consisting of: Touring, Sport, Race, Vintage, Cruiser, and Women’s.

Industry Overview

Today’s powersports industry is a $23-plus billion dollar business, including total retail sales of new bikes, parts and accessories and gear, services, taxes and licensing. Sales of motorcycle and related two wheel vehicles continued showing consistent strength in 2006, with the 14th straight year of growth. The Motorcycle

Industry Council's preliminary estimate on new-unit sales for all brands last year is $1,158,000, a slight increase over 2005. During each of the past four years, combined sales of all types of motorcycles: on-highway, off-highway, dual-purpose and scooter, have passed the one-million level. Rising fuel prices, increasing highway congestion and parking woes have given more people reason to trade four wheels for two. More than 20 million Americans own and ride motorcycles each year. The number of households with at least one vehicle rose 23 percent between 1998 and five years later in 2003 - when an estimated 5.7 million households owned an average of 1.6 motorcycles. Favorable demographics and higher discretionary spending also contributes to more riding apparel, parts and accessories being sold. This segment of the market accounted for more than $2.7 billion in 2005, up from $2.5 billion in 2004

Page 4: SUITED FOR SPEEDSUITED FOR SPEED Files/MP_03.07_Rev.pdf · Strengths for the Entrepreneurial Buyer For the Entrepreneurial Buyer—Motophoria offers a highly cost effective method

- CONFIDENTIAL -

Copyright - CenterPoint Business Advisors, Inc.

4

Types of Buyers

Motophoria is especially suited for a variety of buyers such as: Powersports Dealers, Distributors, and Entrepreneurs. For the Industry Buyer, either a Distributor or Powersports Dealer, Motophoria can serve as an added product line and brand to its current portfolio. Motophoria’s products are already selling successfully to a motorcycle industry dealer network, and have proven to be well received by the end use consumer.

Strengths for the Distributor Buyer

• Developed product line and brand

• Existing supply chain with multiple sources, without long term contracts

• Complete design work on logo and related graphics

• Extensive, high quality sets of marketing materials

• Ready-to-use trade show booth and display supplies

• Current and active dealer distribution network

• Sales channels—direct to dealer, distributors, trade shows

• High margin opportunity as private label Option to buy all landed product inventory at below dealer wholesale cost to generate immediate sales

Strengths for the Powersports Dealer Buyer

• Developed product line and brand

• Existing supply chain with multiple sources, without long term contracts

• Complete design work on logo and related graphics

• Extensive, high quality sets of marketing materials

• High margin opportunity as private label Option to buy all landed product inventory at below dealer wholesale cost to generate immediate sale

Page 5: SUITED FOR SPEEDSUITED FOR SPEED Files/MP_03.07_Rev.pdf · Strengths for the Entrepreneurial Buyer For the Entrepreneurial Buyer—Motophoria offers a highly cost effective method

- CONFIDENTIAL -

Copyright - CenterPoint Business Advisors, Inc.

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Strengths for the Entrepreneurial Buyer

For the Entrepreneurial Buyer—Motophoria offers a highly cost effective method for acquiring a dynamic, up & running business, without the significant start-up costs of product development, distribution network set-up, sales & marketing planning, and related organization start-up costs. Motophoria’s strengths for the Entrepreneurial Buyer:

• Low start-up costs

• Fully developed and working business model

• Highly scalable product portfolio

• Existing supplier relationships

• Some existing dealer & distributor network

• All branding logos and marketing materials on hand

• High quality website and domain name in use

• Possible sales channels—direct to consumer, direct to dealer, distributors, web, trade shows

• Option to buy all landed product inventory at below dealer wholesale cost to generate immediate sales

• EBay store available for immediate use

Page 6: SUITED FOR SPEEDSUITED FOR SPEED Files/MP_03.07_Rev.pdf · Strengths for the Entrepreneurial Buyer For the Entrepreneurial Buyer—Motophoria offers a highly cost effective method

- CONFIDENTIAL -

Copyright - CenterPoint Business Advisors, Inc.

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The Offering

This offering for Motophoria includes:

� Full use and ownership of the brand

� All product designs

� Complete portfolio of marketing

and collateral materials

� Fully developed, advanced design website and domain name

� Sourcing relationships with

product suppliers

� Dealer and customer database and market research results

� Distribution processes

� Warehouse and retail fixtures

� $15K worth of product samples

� Transitional & consultative services of current owner

� Option to purchase remaining

product inventory at cost

The Purchase Price With Seller Financing

The product line and business assets are being offered for $199,000, including a $15,000 supply of sample inventory, business F F&E & intangible assets. Additionally, at the Buyer’s option, the entire Motophoria landed product inventory is available at below dealer wholesale cost. Financing terms are available to a qualified Buyer for up to 75% of the purchase price, with attractive terms to be negotiated.