Mike AndesFounder, Augusta Lawn Care and Homeworks · Founder of Homeworks and Augusta Lawn Care

Paintball company for sale at $750k! 🔫

28 May 2023 · 1 min

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Short video commentary by Mike Andes analyzing a Phoenix-based paintball business listed for $750,000. He cites the business’s stated annual revenue ($460,000), annual profit ($167,000), equipment value ($200,000), and inventory ($75,000), and performs a back-of-envelope valuation adding equipment + inventory + 3× profit to reach approximately $775,000, noting that a 3× profit multiple is generous for this industry.

Questions this video answers

$750,000

$460,000 annual revenue

$167,000 annual profit

$200,000 equipment value

$75,000 inventory value

Chapters

This paintball business is for sale in Phoenix, Arizona, for $750,000. Now, they have $460,000 in annual revenue, and they say they make $167,000 in profit every single year. Now, at first, I thought this valuation was crazy, but if you break it down and if they're telling the truth in all their numbers, it's not so bad, because they say they have $200,000 worth of equipment. So probably all the things that you need for up to 400 people to play paintball. Also, they have inventory of $75,000. Well, if you take 200,000, add that to 75,000, that's two. And then if you add that to three times multiple on their profit, that's another 500K. So really, the valuation, I came up with $775,000. Now, that's pretty generous to give a three times multiple on profit to a paintball business. But what do you think.