What builder is this
 

In Orlando fl.
http://www.businessesforsale.com/us/...-For-Sale.aspx

Been looking to get into something, no way in hell I could swing it but somebody here might.

It's Velocity.

Never saw Steve Stepp as a golfer. you sure ?

HMmm.. I been looking to get into something to.
I think it is Velocity and it's not worth 5 mill.

If it is then I think he's getting out before he has to revamp his line. They have been pretty much the same boat for a long time now. Even Sonic is moving ahead.

Steve is a huge golfer and has won some senior long drive contests.

Steve is an avid golfer, has been for years.

Trust me, this is Velocity.

Parnership?

Partnership is a poor ship to sail on.....................



It is Velocity in Sanford, FL outside Orlando and the highway they speak of is I-4.

5 million sitting in a munibond account earning even 6% is 300K a year tax free. I wouldn't even think of the boat business even if on paper it showed I could make 600K a year. Rising insurance/ fuel prices have pushed Velocity into the center console business for a reason, they can't easily sell their go fast boats. It also notes 3 million in the asset/furniture category but no where it mentions the land/building. Would love to see the 3MM desK!

Now imagine what Skip thinks Cigarette is worth! 25MM/ 50MM or more?

5 mil is about 4.5 mil more than what I am working with, Velocity I don't feel is worth near that much. I love offshore boats but don't think I want to try to compete with the other builders out there, plus it would look bad when I don't drive what I make.:D

I think the market is going in the same direction I want to go with my boating, Large Center Consoles with 4 stroke outboard power. There will still be a high demand for the elite builders like Nortech, Outerlimits, Cig,and a few others.

I would like to see the change at Fountain where for the most part they make a good boat in 3 styles, how much of the orders of the go fast boats have dropped and how many more express cruisers and center consoles get ordered.

Didn't even know they were getting into the CC market and I am looking. I don't like the way they look but that is what they need to do if they can't be one of the elite builders in the go fast market.

Thats' why Egg Harbor bought the Avanti and hulls, EG is building CC's now.
I bet we will se some European off shores soon. I think even the PR's are getting to old for to manny.

Partnerships can be made in hell - or heaven. Takes the right people to make it work.

I dunno - my brother in law's partnership hasn't exactly left him hurting. He and his partners are better friends now than ever. I guess selling beer and wings makes it easier........

Velocity's being offered at 5 mil. That doesn't mean it will sell for that price.

A name for 5

The economy, fuel costs and their combined effect on the performance boating marketplace probably make this one of the worst times in history to be ececuting an exit strategy.

As far as $5 mil...

Compare that to this financial data from a well-known publicly traded performance boat manufacrurer--

Last Sale: 1.24
Change: +0.09 (+7.83%)
Volume: 7,200
Prev. Close: 1.15
Open: 1.05
High: 1.25
Low: 1.05
52 Week Range: 1.01 - 4.45
Market Cap: 6.01M
Shares Outstanding: 4.84M
EPS: -0.96
P/E Ratio: -
Dividend: N/A
Yield: -

Hey what's wrong with Velocity and Sonic sticking with what works.........................."If it ain't broke don't fix it"........ :drink:

I know and lets bring back Beta max & 8 track tapes, they were both around when Steve & Jay started making their molds.:D

Now that's funny. Anybody that even thinks about going into boat mfg business has a screw loose.

good one......lol........it is apples and oranges though.......your speaking of superior technology when speaking about DVD to Beta and 8 Track...... with boats it is more preference and taste.......some guys like myself are not so concerned about the last 1 or 2 MPH and just like the styling of those hulls and decks. Look how many guys around here love to rebuild an old classic.......they know they won't be the fastest or the best but still love to have something different........................now if they were still building boats with inferior motors and drives I would have a problem with that.......

True but it's more than 1-2 mph now with step bottoms, if Sonic's new step hull is a good one I bet it picks up more like 10 mph over the old 42, and that will mean a lot more MPG too.

Steve has always made a center console version of the 22 but it was special order.

IMHO The biggest problem he has with the 22 CC is the fit and finish. It's a 20 year old drop in deck mold that isn't finished anywhere near the quality and style of what you can get on something as mundane as a Wellcraft. You have to be seriously in love with "go fast" boats and Velocity's specifically to do a 22CC. There's too much out there for the same or less money that will support your fishing habit better, it just won't be as fast with the same power.

correct..our neigbor has one..see it every other weekend. It is fast, but thats about it.

More

Braver sells more $$ in t-shirts than Stepp does in boats.

Maybe Dean can chime in being an accountant. I know some businesses are primarily goodwill (no bankable assets) but 5 million ask with 3 million in goodwill seems to be a stretch. If Cigarette sells $XXX in merchandise, then sells 50 boats a year then even they have a cash value. Good will can't stretch that far away from actual value since the buyer has to pay that difference in cash or the owner needs to finance the difference. No bank would loan 25 or 50 million to buy Cigarette when they make 50 boats a year. Revenue is based on production whether it is making t shirts or boats. Low production = low revenue.

The other thing I thought of was if you had the capital invested you need to look at the opportunity cost of changing gears. If your 5mm was earning 300K at 6% in secure munibonds then you decided to buy a boat business that on paper would make XYZ dollars how much better is that than doing nothing and living on your existing bond income and in worse case what about if the boat business eats you alive and you lose the capital and the business!

For you math guys, a 4MM note at 7% for 15 years would add $36,000 a month to your existing overhead AFTER you stroked a 1MM downpayment. That is a lot of extra overhead he is not paying now. Once that is figured into the existing business model (his with low overhead) you can see that a small fortune would be made in the boat business after you started with a big fortune! :D

I can't stand getting beat to death anymore after all the racing crashes so I don't look at any smaller than 35 feet so that is why I never saw them. I have a 16 foot Carolina skiff and some jet skis and it's very rare if I can't see my house when I am on them.:D

From what I have been told in the last month of looking for a biz. the banks are gonna want a lot more than 1 mil on a 5 mil buy. Maybe 1 mil cash and 2-3 mill in other assets. I looked at a biz the other day for 650K they want 100k cash and me to put my house up too, my house is worth about 1.5 and I owe 600k. My wife and I have great credit also.
I still feel in todays economy it's better to buy an already established biz than trying to start one(in most fields). but I'll keep looking for the right one.

I'm an accountant and I've been seeing a lot of this lately. There are A LOT of baby boomers starting to get out. They want quality of living and no longer want the stress of it all. It looks like the owner wants to stay on board. Not sure if it has anything to do with the actual boats being made. It looks like the owner just wants to retire.

:ernaehrung004:
Yep, I'm one of "those" guys.

But in 20 years are you still going to be restoring 1988 Cigarettes or Sonic's or are you going to be looking for classic Outerlimits and Nortech's to do, when the prices are more for the everyday man ?

If that is the case (10mph gain) then I would agree that they should update the hull.........but I would hope they keep the deck or at least the same lines...........

There are quite a few people out there who still restore the Model A........but I know that too is apples and oranges..........I myself would rather re-store an Outer Limits.......

I'll let you know in 2028:cool-smiley-011:

Why 2028? Is that when the Pantera will be back in the water? :D

I'm hoping sooner.
At least I think I'll still be in the water before Audifn, and he started that project, what, five years before me??

Yes you have to keep that walk around of the Sonic. Look at how much the 38 Top Gun picked up from the flat to the twin step with just 500hp's in them, was like 72 mph to 82 mph.

Yes but that old model A doesn't half to float and run across the water at 70 mph , I like me some old muscle cars and trucks but for the everyday driver TV's and boats I like to have them be ten years or less.

Gotta agree with ya there........I am not into having a trailer queen.....................

Just cause "it ain't broke" dosen't mean anyone wants it. Both are very old technology in terms of design. And don't think I'm trying to start something here. We are live in a high tech world and most want the latest and greatest of what is offered. In order to remain in this boat building game a company needs to constantly be on top of the latest technology, if not just ahead of it, if they want to gain their share of the market. Both of the above are designs that are decades old in their basis, both still work ( ain't broke ) but are not keeping up with the standards being set in the industry, and are seeing shrinking markets for their designs.

Set aside the fact that I own a Fountain and apply this to your own brand of choice. This fall I sold my 35' boat with HP 500 carb motors, bought a much newer and more technologically advanced design 35' model by the same manufacturer, with HP 525's. With only a small increase in horsepower I have gained a solid 10 mph increase in top speed. Which will also translate into a higher cruise speed, or the ability to cruise at the same speed as before but a a lower and more efficient engine speed. I see this as a win - win deal, faster on esentially the same power while using less fuel, and no tempermental high maintence hot rod engines to deal with, or the other broken chit that often follows the adding of more hp to any given set up.

If your manufacturer of choice could offer this to you would you not be inclined to return to them for your next purchase? Or would you be content to stay with them if their pitch to you was "It ain't broke, so we ain't gonna spend our money to fix it, just for your benefit"

OK, here is an idea............OSO needs to gather its 30,000 best members and have them each chip in $166 and then we can all be experts and become the new owners of Velocity.
If we own the company we can takeover the industry by shamelessly self promoting the boats here on the #1 Powerboating website! :party-smiley-004: