Investment Opportunity – Product Design Company
Overview
- Founded in 2005, the Company, headquartered in Shaker Heights (Cleveland), Ohio, developed the GymValet (U.S. Patent #7,275,729), a combined bottle and towel holder that is easy to install and universally attachable directly onto virtually all makes/models of exercise equipment.
- GymValet unique Velcro® strap attachment system conveniently places equipment cleaning and sanitizing supplies within arm’s reach of every exerciser, making it fast and easy to clean and sanitize equipment before and after each use.
- To date, the GymValet system has been sold to fitness facilities, representing many sectors of the market, across the US and Canada, as well as to other international locations.
- GymValet systems are sold to for-profit fitness clubs, colleges and universities, community recreation centers, YMCAs and JCCs, athletics training facilities, government and military fitness centers, corporate fitness centers, apartment and hotel fitness centers and physical therapy centers.
Key Considerations
Competitive Position
At this time, there is no product offered by another company identical in design and function to the GymValet. Competition occurs indirectly in two areas: 1) Pre-moistened disposable wipes, and 2) OEM built-on holders. While these options do pull business away, their inherent flaws actually create substantial opportunities for the GymValet product.
Extremely High Profit Margins
Historically, the Company has generated gross profit margins of 60%.
Growth Opportunities
GymValets are currently being sold to a broad spectrum of the health and fitness center market. However, there are currently significant growth opportunities both in vibrant large markets with a consistent track record of buying, such as the college/university market, as well as in underserved markets including major chains and franchises, YMCAs and JCCs, athletics training facilities, government/military fitness facilities and community recreation centers. GymValets have been sold to a small fraction of the vast international markets (all seven continents) that represent significant untapped potential for the GymValet product and the equipment cleaning/sanitizing solution it represents.
Revenue Synergies
A strategic acquirer’s support and existing customer base could be a platform with which to capture incremental revenue growth. Acquisition of the GymValet product line would result in increased revenue potential gained from economies of scale, and substantial operating synergies. Specifically, the ability to provide a wider variety of products and services to customers from a single platform would result in substantial efficiencies, margin expansion and expense reduction.
For More Information
If you are interested in receiving further information, please contact:
Robert Angart, Principal | Sues & Angart | (216) 534-4424| rangart@suesandangart.com
Justin is the Managing Director of Active Management, which he began January 2004. He offers coaching to businesses worldwide in everything from start up and design to marketing and sales systems. Justin also facilitates four Australian and New Zealand ‘fitness industry roundtables’ events, which allows him to see a huge cross section of business models.