| National sports recruiting service |
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United States
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INDUSTRY
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BUSINESS SUMMARY
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RECRUIT 2003 Executive Summary
MISSION STATEMENT
Recruit will continue to solidify itself as the national leader in athletic recruiting and scouting information and services for high school athletes and college coaches.
OVERVIEW
Recruit will continue to offer an array of valuable services for high school athletes and their families seeking scholarship and playing opportunities at the college level. These services center around aggressive promotion of the athlete’s skills and talents to college coaches, as well as experienced advice and consultation to the family going through the recruiting process. Recruit will achieve these goals through the procedures and marketing systems developed at the Recruit home office in Bakersfield, California, as well as through our network of 180 regionally based scouts and franchise directors in the U.S., Canada and Europe.
Recruit will seek revenues of $1.5 million dollars in 2003 to continue our history of strong revenue growth. This will be accomplished through athlete contract sales, sales of franchised areas and new programs and services that will be introduced during 2003.
Recruit will continue to it’s commitment to the student-athlete, our client, by offering a wide array of valuable services at competitive prices. Recruit will continue to rely on it’s unique competitive strength – our 180+ regional scouts – to build solid customer relationships throughout the U.S., Canada and Europe.
Since 1998, Recruit’s gross revenues have nearly doubled each year. This has been accomplished despite a shortage in working and development capital. This is a testimony to the talent and dedication displayed on a daily basis by the Recruit home office and field staff, and will continue to be the foundation for continued success in 2003 and beyond.
MARKET STRATEGY
Recruit’s unique service of giving high school athletes and college coaches access to each other will continue to be in demand. Athletes, with their parent’s support, want the opportunity to play sports at the college level and possibly have that athletic ability pay for a college education. However, almost all families have little understanding of the complicated recruiting process, and have no plan to make sure that their child gets an opportunity to be noticed and recruited by a college coach.
Recruit will continue to use its proprietary system of direct marketing, internet lead generation, and targeted media advertising to reach the nearly 6 million high school athletes that play prep sports each year.
Recruit, through our experienced home office staff and trusted regional scouts, can provide the link and insider knowledge to the process. Unless kids stop wanting to play sports and go to college, there will continue to be a strong demand for Recruit’s services.
RECRUIT’S TECHNOLOGY
Recruit’s foundation for brand awareness in cities throughout the country will continue to be through our talented regional scouts. Those scouts are supported by Recruit’s unique, custom developed intranet system that gives scouts in the field real-time technology tools to support their sales efforts in their communities while linking them directly to the home office. Our system enables each component of the Recruit operation to communicate with each other, create revenue opportunities, and serve our prospects and clients. A major upgrade to this intranet system is planned for early 2003, and will increase the capabilities and functionality of this one-of-a-kind intranet support tool.
Recruit will also continue to use internet technology that currently supports our myriad of websites, including recruitzone.com and recruitathletes.com (our exclusive athlete search site for college coaches).
EXIT STRATEGY
Recruit is a privately held California S-Corporation. The current group of shareholders are targeting two methods in their exit strategy: Sale of the company to a larger firm that is better enabled financially to grow the company in this next stage of development, or by new investment ownership in the form of equity stock. The percentage ownership of the company would, of course, be dependent upon the investment amount.
The current investors want to realize one of two goals in 2003: A large equity investment that would enable the company to continue second stage growth as well as pay-back some of the investors original investment in Recruit, and provide a solid base of working capital to ensure long-term success of this unique company.
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BUSINESS FINANCIALS
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Asking Price: |
850000 |
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Past Annual Revenue: |
(12 month gross) 727461 |
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EBITDA (cash flow): |
952788 |
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GENERAL COMPANY INFORMATION |
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Organization Structure: |
Sub S |
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Furniture, Fixtures, and Equipment: |
195000 |
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# of Profit Centers: |
3 |
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Headquarters/Main Location: |
Rent/Lease
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Time on lease/mortgage: |
1 to 3 years
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Is Business Relocatable? |
Yes |
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Sellers Web Site: |
www.recruitzone.com
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MARKET OUTLOOK/COMPETITION
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| Recruit has nearly doubled revenues each year since 1998. Recruit currently has representatives in 25% of the nation, so there is a lot of growth potential remaining in the core business, and additional revenue opportunities in additional products and services that could be developed in this market.
Recruit faces little competition nationally due to our unique marketing system and our network of 180+ regional scouts and franchisees around the U.S., Canada and Europe |
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DETAILS ABOUT THE SALE
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Financing/Down Payment
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425000 downpayment |
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Support & Training
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As stated earlier, the current president can be involved in the day to day operation of Recruit if desired by the new owner under a two year employment contract (additional years are negotiable). If new owner desires a full transition, one full month of training and support is available along with additional support as needed on a contract consultant basis. Additional needs for training and support are negotiable, and the current owner would work to meet any unique needs or requests of the new ownership. |
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Reason for Selling
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Recruit is in the second stage of growth and needs owners/shareholders with deeper financial resources than the current original shareholders. We project this to be a 7 to 15 million dollar per year business with the right financial backing, and desire to see the company grow to dominate the market nationally. Additionally, there is another family business opportunity for the main shareholder to pursue. Funds from the sale of this majority owner's share would go towards that projet, although the shareholder could still be involved daily with assisting the operation of Recruit and/or training and supporting the new owner(s). |
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Is Management Willing to Stay?
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Yes
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Are You An Intermediary?
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No
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Broker Cooperation
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Full Cooperation |
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Financials
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Asking Price |
| 850000 |
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Past Annual Revenue |
(12 month gross)
727461 |
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EBITDA |
| 952788 |
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Web Site Design
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