3 Y/O Unique TX Running Race Series
Strong Margins, Low Owner Involvement & Ample Repeat Patrons
For sale is an event management company based in TX.
The company business model is to generate sponsorship and entry fee income from a series of different races for runners of all skill levels. The business capitalizes on the increasing and profitable popularity of running and fitness, combined with savvy digital marketing and event-based sponsorship.
For buyers looking to monetize the $31 billion market for fitness,1 the acquisition is an ideal fit for:
- A strategic that manages road races in other markets;
- A strategic that makes running and fitness products like apparel, gear, or wearables;
- An investor looking for predictable cash flow, including those who don't want to be involved in day-to-day management.
The company leverages Americans’ passion for fitness and running: last year +64 million people participated in some form of running, and +17 million ran in an organized race event. Nearly half of these racers are Millenials -- now the largest cohort of the population – as running is increasingly popular for them.
Catering to this passionate audience in metro Houston, the company manages eight events held from September through May, while spending the summer months preparing for the following series and selling corporate sponsorships.
The business cast a wide demographic net to pull in both the serious and beginner runners in metro Houston and beyond:
- The company offers a “Virtual Race” option allowing runners to participate even if they are away from the Houston area. Virtual Racers register digitally and run the required distance within three days of a live event – and still get the t-shirt and medals.
- The company pulls in 501 (c ) charities and their corporate backers, where entire teams of runners participate to raise money for their desired cause.
Once consumers participate in an event, the company harnesses savvy digital marketing and social media to build loyalty and connection. There are over 33,000 registered users in the company’s marketing database. On average, 27% of runners for the company and 34% Percent of runners for their Half Marathon Series return to participate in a subsequent race.
Having built up this successful business, the founding owners are selling the company in order to focus on other interests. Transferring to the new owner will be the assets of the company plus the intangible value of the company’s strong reputation and goodwill for the two race series, which serve as a blueprint to scale both within metro Houston and to other geographic markets.