Global Sporting Advisors, LLC provides its clients with a an approach to the purchase, or sale of a sporting business that is much more comprehensive than the traditional real estate approach involving advertising, the development of marketing brochures and comparable sales. In essence we believe that each transaction involves both real assets and an operating business and that both are important in justifying a price.

Preparation Of Buyers

First and foremost we seek to adequately prepare buyers for their potential purchase and sellers for the eventual sale of their business. This means GSA staff must understand every aspect of the business and the resources on which it is based and therefore we conduct extensive due diligence not only on the property but on the operating economics, the market, competition, sporting activities, positioning, reputation and brand name. This will allow us to prepare a detailed, extensive sales memorandum that emphasizes the investment merits, provides a detailed disclosure of property, assets and business information. Then, in the case of a sales assignment, GSA markets to a proprietary database of known buyers, and also assists in the complex transaction negotiations. With purchase assignments, our approach educates the buyers and allows them to make an educated offer based on a real analytical approach.

Professionalizing The Purchase Or Sales Process

The result of GSA's approach is that it professionalizes the purchase or sales process of sporting businesses. It achieves much better results because it covers every facet of the purchase or sale process. Buyers and sellers have an experienced advisor available to them at a critical time. And because the physical and operating assets are prepared before the sale we can attain a purchase or sale price that better reflects the value of the property AND the business. Because we focus on what buyers want and need we can find the right new owner and structure the best transaction for both buyer and seller. We also manage ownership transition issues between a buyer and seller thereby helping to preserve and enhance the business brand and set the stage for future business growth and success under the new owner.

Purchase Or Sale Process - How We Work

Components

• Initial Due Diligence and Assessment
• Valuation Approach
• Information Memorandum
• Buyer Universe
• Marketing
• Negotiations
• Fees

Initial Due Diligence and Assessment

• On site review of sport, accommodation, dining, business practices
• Analysis of marketing efforts and strategy
• Analysis of customer base/interviews
• Comprehensive financial review: balance sheet, income statement, cash flow statements
• Focused pre-sale recommendations

Valuation Approach

• Focus on intrinsic value and its quantification
• Breakdown and compilation of physical assets
• Importance of customer list and profile
• Definitive sporting statistics
• Recent comparable sale/lease statistics
• Resultant relative valuation expectations

Information Memorandum

• History of the business, the property and ownership
• Geographic location and travel requirements
• Present operations, customer offerings and seasons
• Maps of property, leases with relevant photos
• Description of sporting activities, and daily/weekly fees
• Discussion of brand and intangible assets
• Customer base
• Historical financials
• List of physical assets in addition to real property
• Senior management and staff biographies

Buyer Universe

• Client's definition of acceptable buyers
• Screen universe based upon the unique demands of both seller and buyer
• Add screened seller's customer list
• Our proprietary lists
• Other direct contact in industry, competitors, foundations, governments
• Indirect contacts through other industry participants
• Possible mass marketing through advertising
• Possible joint venture marketing with other agents

Marketing

• Exclusive assignment
• Targeted approach with excellent materials
• Combination of standard and electronic mail with telephone follow up
• Focus towards onsite visit - education of buyer
• Create sense of urgency - Letter of Intent, Purchase Agreement, Closing
• Bring in purchaser advisors early on
• Information available on website - password protected
• Financials available with signed confidentiality agreement

Negotiations

• Price
• Legal structure for the transaction
• Management retention contract
• Tax considerations to both buyer and seller
• Representations and warranties
• Other buyer or seller issues

Fees

• Initial retainer (offset against success fee)
• Agreed upon marketing budget
• Success fee as a percentage of sale price
• Exclusive representation for a specified period
• Direct expense reimbursement
• Indemnification Provisions