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Joined: May 2011
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Campfire Ranger
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Campfire Ranger
Joined: May 2011
Posts: 15,894 |
I heard a report today (2nd hand) that gunbroker.com has been purchased by ammo.com. Anyone have any confirmation on this?
There are 2 rules to success:
1. Never tell everything that you know.
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Joined: Jul 2009
Posts: 4,478
Campfire Tracker
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Campfire Tracker
Joined: Jul 2009
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I read a press release from Ammo.com that they had signed a Letter of Intent to acquire gunbroker. Far from a done deal but you don’t put out a press release if you aren’t serious.
If you’re curious, gunbroker was making about $40m pre-tax and Ammo.com is paying $240m
I do M&A deals for a living, fwiw
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Joined: Jun 2007
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Campfire Regular
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Campfire Regular
Joined: Jun 2007
Posts: 911 |
What could Dakota Arms be bought for at this point?
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Joined: May 2001
Posts: 18,345
Campfire Ranger
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Campfire Ranger
Joined: May 2001
Posts: 18,345 |
If you’re curious, gunbroker was making about $40m pre-tax and Ammo.com is paying $240m
I do M&A deals for a living, fwiw
Is that a good multiple for this type of business?
Carpe' Scrotum
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Joined: May 2011
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Campfire Ranger
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Campfire Ranger
Joined: May 2011
Posts: 15,894 |
Thanks ShortMagFan. Good intel. I would think that gunbroker would be resistant to recession periods and really boom during periods like we're seeing now.
There are 2 rules to success:
1. Never tell everything that you know.
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Joined: Sep 2006
Posts: 23,631
Campfire Ranger
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Campfire Ranger
Joined: Sep 2006
Posts: 23,631 |
If the 40 mil is EBITA, a 6x multiple is a tad low, IMO.
Just lots of Goodwill.................
MM
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Joined: Jan 2016
Posts: 95,681
Campfire Oracle
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Campfire Oracle
Joined: Jan 2016
Posts: 95,681 |
I heard a report today (2nd hand) that gunbroker.com has been purchased by ammo.com. Anyone have any confirmation on this? Yep, heard it several days ago. For $250 million iirc. It makes 50 million a year with 10 million in expenses or something like that, iirc. Unreal. Crap, i cant remember. Maybe take a 0 off. Still, unreal numbers.
Last edited by jaguartx; 02/21/21.
Ecc 10:2
The heart of the wise inclines to the right, but that of a fool to the left.
A Nation which leaves God behind is soon left behind.
"The Lord never asked anyone to be a tax collector, lowyer, or Redskins fan".
I Dindo Nuffin
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Joined: Oct 2010
Posts: 7,687
Campfire Outfitter
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Campfire Outfitter
Joined: Oct 2010
Posts: 7,687 |
Do you think they'd leave out depreciation?
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Joined: Jul 2009
Posts: 4,478
Campfire Tracker
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Campfire Tracker
Joined: Jul 2009
Posts: 4,478 |
Do you think they'd leave out depreciation? It is $240 on $60 of ebitda. A lot of people that don’t do it for a living don’t know what ebitda means so I just said pre-tax The reality is that gunbroker has very little in terms of fixed assets and so therefore would not have much depreciation In terms of a multiple, just on its face, 6x seems low. That said, I am sure buyers question the sustainability of the current earnings level. Furthermore, prices for many companies get driven up by private equity investors but most of them would not invest in gunbroker due to headline risk or, in many cases, a specific prohibition from their investors on investing in a company that makes its money based on firearms. That’s just the reality
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Joined: Jun 2002
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Campfire Sage
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Campfire Sage
Joined: Jun 2002
Posts: 131,669 |
Risky, since the Bolshevik left now in power is talking about shutting down online gun auction sites.
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Joined: Feb 2004
Posts: 46,745
Campfire 'Bwana
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Campfire 'Bwana
Joined: Feb 2004
Posts: 46,745 |
Hell at the prices they're supposedly getting for guns, I could sell 3 and be the new owner.
Camp is where you make it.
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Joined: Apr 2011
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Campfire Savant
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Campfire Savant
Joined: Apr 2011
Posts: 151,370 |
Hell at the prices they're supposedly getting for guns, I could sell 3 and be the new owner. Yep
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Joined: Aug 2005
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Campfire Outfitter
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Campfire Outfitter
Joined: Aug 2005
Posts: 10,742 |
Get everything gun related in one nice pile. Will be easier to snuff it out that way.
A true sportsman counts his achievements in proportion to the effort involved and fairness of the sport. - S. Pope
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