I heard a report today (2nd hand) that gunbroker.com has been purchased by ammo.com. Anyone have any confirmation on this?

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

What could Dakota Arms be bought for at this point?

Is that a good multiple for this type of business?

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.

If the 40 mil is EBITA, a 6x multiple is a tad low, IMO.

Just lots of Goodwill.................

MM

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.

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

Risky, since the Bolshevik left now in power is talking about shutting down online gun auction sites.

Hell at the prices they're supposedly getting for guns, I could sell 3 and be the new owner.

Yep

Get everything gun related in one nice pile. Will be easier to snuff it out that way.