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Shepherd

What are the Steps to sell an entire tackle business(molds, injection system, packaging, inventory, name)

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I honestly think you will be hard pressed to find someone willing to buy all. 

1.  The name?  I don't fish near what I used to but don't think it is a selling point.  Outside of this forum never heard of the company.  Not many are going to be and won't add anything to the sell.  Mom and pop bait companies come and go.

2.  Molds?  Are only worth something if they a good.  If you have a bunch of strange things that won't sell the are nothing but scrap.  

3. Inventory... see molds.. but typically have to give it away.  Been to too many tackle shows were some guy thought he would start a lure business and is selling things for a huge loss and still can't move product.

4.  Injection machinery is the only value along with maybe unused supplies.  All will have to be priced right in order to move.

Local guy/gal your best bet and you should have very detailed business related records.  Are there agreements in place with tackle stores, will those transfer and continue?  Bottom line I would want to see your revenue stream and know if it is something of value.  Absolutely nothing to gain to take a failing lure company and try and make it successful.  Usually the damage is done at that point.

 

 

Edited by Travis
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It is NOT a failing company....Also, of course I would open my books, for serious potential buyers. My distribution would transfer and not skip a beat. You may have never heard of company. That's understandable, there is 100s of companies like mine. But that doesn't change the fact I'm in stores in Alabama, Mississippi, and Florida. Along with orders directly from my website.  I've found my niche and only want to sell if someone was looking for a turn and key business. My molds are solid. I will just keep them for personal use. Thanks for your reply.

Edited by Shepherd
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I didn't say your company was failing... I said I would want to see books on any business as  most you don't want to take on a failing company especially something as fickle as lure making.   Business definition varies considerably on this site depending on the guy/gal.  Guys selling 500 bucks a month calling it a business and then guys pushing legit volume and money and walking away from real jobs with benefits.  

Just my experiences with regards to molds, inventory, and small bait companies on KY/Barkley lake area.. over the years.  Most of my experience was when there was a lot less competition in the early 1990's to 2000 can only assume it has gotten worse.

Maybe someone else will chime in there have been several on here with lure companies or businesses or contact you privately.   

 

Edited by Travis
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Thanks for your time and honest opinion. You're 100% right it is a very very tough industry to get your foot in the door. But to any of that is interested the proper steps on my end will be transparent and honest with good intentions I would never try to sell a business especially when I created if that business was in the red. I don't believe that would be very honest or definitely not high moral code. I don't want to let it go but I would love to see someone who has been in the business and has their own distribution and might see my company and it's volume as a asset to their bottom line. It'd be pretty cool to see how far someone that's already pretty well known can take it. It's always very interesting to me how some people find the way in this industry to Excel way beyond expectations. I came very close and talking with Jim at Major League fishing to do a deal with them. You're basically paid to play. I just love fishing and everything about it and would be really something to hang my hat on if anything I did inspire the next generation to keep the boats in the water and the lines tight. I appreciate you man

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Really tough to sell a soft plastic bait company unless you're someone like Yamamoto.  As mentioned, you will more than likely have to piece it out.  Not really the name people are after.  It's your molds and other products, provided they are of good quality. 

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I think unless you are a nationally recognized household name among anglers you are going to be hard pressed to sell the company as a whole.  Some angler/venture capitalist in New Mexico has to know your name, and know people in New York will know your name before they would be interested.  

If you just want out its going to probably be piecemeal at pennies on the dollar for your hard assets.  Tackle maker related groups may realize the best prices, but I sell stuff on eBay and Etsy with varying results. 

You have some good designs.  If you want to sell the company and get more out of it I think you are going to need to put more into it.  More time promoting.  Spamming craigslist in every city.  Getting on local and regional fishing and tackle groups and investing time in learning their rules about how you can (or can't) expose your name and your products.  **

Do a search and send 10-20 sampler bags of baits to every youth fishing organization and event you can find every where in the country (maybe the world).  Then when everybody knows your name... When you are making sales and expanding production... and finally starting to make real money... THAT is when its time to hire a broker.  

A business is not magically worth anything just because it has a name or even because it exists.  You have to build the name one brick at a time.  Just like building the business.  Its not anything until it actually is something.  

** For example, I run a fishing forum called Yuma Bass Man.  I do not allow companies to blatantly spam my forum.  PERIOD.  Even a new member intro post that is just about their business will be removed.  However, I do allow a company related avatar.  I allow a signature field that can have a link and a small graphic with the rule being if you have to ask if its to much then it is. Every time a business owner WHO PLAYS BY THE RULES and is a participating MEMBER of the community instead of a USER of the community their company information is seen by every person who reads that thread.  Help another member.  Appreciate a great story.  Post your own adventures.  Every time you participate as a real community member you are rewarded.  Post garbage posts for exposure.  Comment just for the ad space on every thread.  Abuse the community, and you will vanish from the forum like somebody went back in time and erased you from the timeline like a bad science fiction plot.  Most forums DO NOT allow as much as I do, but most have some level at which you can expose yourself and your business to new forums and new anglers if you READ THEIR RULES.  pretending ignorance and saying, "Well I thought this forum was here to share with people, I'll be sure to make sure everybody I know is told its not," will get rubbed out like an EraserMate signature on a million dollar check. 

One thing I do is go fishing using baits that came from molds I made.  When I have a fishing a adventure to share I mention all the baits I caught fish with.  Not a staccato list of baits I caught fish on, but a tail of my day with mention of what worked.  I get questions like, "What's a Club-O?"  "Where can I find Curly Buzz Frogs?"  "What in the heck is an RT45?"  "Who made that mini crankbait you were using?"    When I answer them (in a non spammy way) I am contributing to the community in a positive manner.  Helping other folks, and sharing a fishing adventure.  It doesn't hurt that I had a one good instructor who taught me how to write.  (I don't always do it the way she taught me.)  

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