Gross Revenue: $4,500,000

Gross Revenue Comments: Combined Companies

Inventory: $650,000 (Included in Asking Price)

FF&E: $50,000 (Included in Asking Price)

Real Estate: (Not Included in Asking Price)

Seller Financing: negotiable

One of the world’s most established and prominent distributors of action and lifestyle sports DVDs and content rights, including snowboard, ski, skateboard, kiteboard, surf, wakeboard and other action sports is seeking to sell their company. This is a VIP Pass to the action sports inner circle.

The main business of this company is in the areas of distribution, licensing, and production services. They distribute American, European and Japanese produced action sport DVDs, PSPs, music CDs, and other media products internationally. Licensing sales occur with traditional media companies to include DVD distributors, terrestrial TV, Pay TV, Cable TV, footage sales to ad agencies and production companies as well as outdoor billboard advertising. They also license sales for digital and hand-held media. In terms of production services, they provide DVD authoring, subtitling, and post-production services internationally, produce television programs and short-form content for web, and have ownership of film festivals and various websites. The company also has a growing direct-to-consumer segment focused on the sales of DVDs to sports fans worldwide.

They are a leader in the snowboard market and are also growing in the skate and surf markets. Their primary revenue stream is the distribution of action sport DVDs into their extensive network of core sports shops, larger retail chains and online distributors. They carry strong and loyal brands and have a history of accessing the best new content every season.

An ideal buyer would be someone with the drive to take this company into the Digital Delivery market via ad-supported video internet, internet downloads, streaming, iTunes and mobile phone business to name a few.

There are two companies; one focused upon Japan sales with a sales staff in Tokyo. The other focused on USA and international sales with a sales staff in the USA. The owner is willing to sell each company separately or both together, as it is currently operated.

View the company websites at:
http://www.allyvideo.com/ and http://www.championvisions.com/
(more videos and clips available - please contact broker)

Year Established: 1987

Employees: 9 full time - 4 part time

Relocatable: Yes

Facilities: The USA office is commercially leased with a month to month agreement, currently occupying 1,450 sq feet of space. The inventory is warehoused in San Diego, California where the DVDs are manufactured. The current term on this contract is 2 years which expires at the end of June 2008. The JAPAN office is commercially leased occupying 950 sq feet of space near the media district of Tokyo. The inventory is warehoused in Gunma Prefecture (100 miles from Tokyo) where the DVDs are manufactured. The current term on this contract is 1 year, which expires at the end of June 2009.

Market Outlook and Competition: This company has strong market share in the US and Japan between 20 and 80% in the markets of snowboard, wakeboard, ski, skate, surf, and kiteboarding. In addition, they have an early mover advantage in Japan, with a few small competitors on the horizon but none that can compete with the content and relationships that they presently hold. Currently, their top 5 clients account for 30% of their sales. They have direct connections and working relationships with more than 400 active producers globally including pro athletes and companies such as Burton Snowboards, Quiksilver, Volcom, Oakley, Fuel TV, Monster, Redbull, and Nissan. They also have 26 commission-only, sales reps nationwide in the USA. New potential markets include motocross, mountain bike, and BMX in addition to the most important growth market of Digital Delivery. The company also anticipates growth to traditional DVD markets such Big Box retail (Costco, Best Buy, etc), Blockbuster and Netflix. The 2010 Winter Olympics in nearby Vancouver, BC offer unique opportunities.

Management Training and Support: The owner is willing to remain involved as either a manager or on a consultant basis in order to continue the success of this company.

Reason For Selling: The present owner understands that a new owner will allow this company to grow into untapped areas such as internet streaming, mobile phone business, ad-supported internet sales, iTunes, and download sales.