📄 Investor Valuation Memorandum

eGolf Village – Pro Shop Private Label Apparel Platform

1. Executive Summary

Company: eGolf Village Private Label Apparel Platform
Stage: Pre-Revenue / Pilot Phase
Sector: B2B Golf Retail / Private Label / Supply Chain Platform
Business Model: Syndicated purchasing + private-label manufacturing for independent golf pro shops
Proposed Pre-Revenue Valuation: $22M – $28M (Base Case)

The eGolf Village Private Label Apparel Platform is a national, pro-shop-exclusive private label golf apparel business that aggregates purchasing demand from independent golf shops to enable factory-direct sourcing, superior margins, and exclusive branded merchandise.

By consolidating fragmented demand into coordinated production runs, the platform creates durable cost advantages, recurring revenue, and strong partner lock-in.

2. Business Overview

Mission

To strengthen independent golf pro shops by providing exclusive, high-quality private-label apparel at pricing and margins previously available only to large national chains.

Core Offering

  • Performance golf polos and apparel

  • Private-label and co-branded options

  • Custom logo programs

  • Staff PUD (Personal Use Discount) incentives

  • Volume-based rewards

Distribution Model

  • B2B only

  • Restricted to participating pro shops

  • No direct-to-consumer sales

  • No third-party marketplaces

This preserves pricing integrity and channel loyalty.

3. Market Opportunity

Industry Context

There are approximately 12,000–15,000 golf courses and associated pro shops in the United States. Most operate independently and purchase apparel in small quantities at unfavorable wholesale terms.

Total Addressable Market (TAM)

Metric Value
Golf Shops ~15,000
Avg Apparel Spend $60,000
TAM ~$900M

Serviceable Available Market (SAM)

Targetable independent/semi-private shops: ~6,000

6,000 × $50,000 = $300M

Serviceable Obtainable Market (SOM – 5 Year Target)

Target Shops Avg Spend Revenue
600–900 $45,000 $27M–$40M

4. Product & Value Proposition

Product Portfolio (Phase 1)

  • Premium performance polos

  • Moisture-wicking fabrics

  • Multiple fits and styles

  • Seasonal colorways

Customization Options

  • Embroidered course logos

  • Co-branded labels

  • Tournament editions

  • Member-exclusive lines

Value to Pro Shops

  • 15–25% higher gross margins

  • Exclusive product differentiation

  • Reduced inventory risk

  • Faster replenishment cycles

  • Staff brand advocacy via PUD

5. Business Model

Revenue Streams

  1. Wholesale margin on apparel

  2. Customization fees

  3. Platform participation fees (future)

  4. Premium product tiers

Unit Economics (Target)

Item Amount
Landed Cost $16
Wholesale Price $22
Gross Margin ~36%
Net Margin (Target) 25–30%

Recurring Revenue Dynamics

  • Quarterly syndicated buying cycles

  • High reorder rates

  • Seasonal refresh programs

  • Long-term supplier contracts

6. Competitive Landscape

Status Quo

  • National brands (Nike, Adidas, TravisMathew)

  • Distributor-based wholesale

  • MAP pricing restrictions

  • Limited customization

Platform Advantages

  • Factory-direct sourcing

  • No MAP constraints

  • Exclusive channel access

  • Data-driven demand aggregation

  • Community governance

Barriers to Entry

  • National shop network

  • Supplier relationships

  • Platform integration

  • Volume commitments

  • Switching costs

7. Growth Strategy

Phase 1: Pilot (Year 1)

  • 50–100 shops

  • Prototype validation

  • Supply chain optimization

Phase 2: Expansion (Years 2–3)

  • 200–500 shops

  • Regional sales teams

  • Dedicated manufacturing lines

Phase 3: Scale (Years 4–5)

  • 700–900+ shops

  • Vertical integration

  • International sourcing

8. Financial Projections (Summary)

Year Shops Revenue
1 75 $1.5M
2 200 $5.0M
3 450 $15.8M
4 700 $28.0M
5 900 $40.5M

Target EBITDA margin at scale: 20%+

9. Valuation Methodology

Three independent methods were used:

Method A: Exit-Based Valuation

Projected Year 5:

  • Revenue: $40M

  • Multiple: 8x ARR

  • Exit Value: $320M

Applying 12x investor return:

$320M ÷ 12 = $26.7M

Method B: Replacement Cost

Component Cost
Brand Development $1.5M
Supplier Network $2.0M
Platform $2.5M
Sales Network $2.0M
Data & Contracts $1.5M
Operations $1.0M

Total: ~$10.5M
Applied multiple: 2.5x
Implied Value: ~$26M

Method C: Market Comparables

Comparable sectors:

  • B2B marketplaces

  • Vertical commerce platforms

  • Private-label networks

Observed multiples: 6x–12x ARR

Applied blended multiple: 7x–10x

10. Valuation Conclusion

Method Implied Value
Exit-Based $26.7M
Replacement $26.0M
Market $20M–$35M

Recommended Pre-Revenue Valuation

$22M – $28M (Base Case)

$30M+ (Strategic Upside Case)

11. Key Risk Factors

Risk Mitigation
Supplier reliability Multi-vendor strategy
Adoption rate Anchor shop partnerships
Inventory risk Pre-order syndication
Working capital Advance deposits
Brand adoption Staff PUD + exclusivity

12. Exit Scenarios

Strategic Acquisition

  • Major apparel brand

  • Golf equipment company

  • Sports retail platform

Platform Roll-Up

  • Integration with broader eGolf Village ecosystem

Private Equity

  • Cash-flow-focused acquisition at scale

Expected exit range: $200M–$400M+

13. Investment Thesis

Investors benefit from:

✅ Predictable B2B demand
✅ High-margin private label
✅ Low customer acquisition cost
✅ Strong network effects
✅ Platform extensibility
✅ Recurring revenue

This business combines the stability of wholesale with the scalability of a technology-enabled marketplace.

14. Use of Funds (Example Seed Round)

Target Raise: $2M–$4M

Category Allocation
Manufacturing Setup 30%
Platform Development 25%
Sales & Partnerships 20%
Inventory Financing 15%
Working Capital 10%

15. Closing Statement

The eGolf Village Private Label Apparel Platform is positioned to become the dominant infrastructure provider for independent golf retail apparel in the United States.

Through coordinated purchasing, exclusive branding, and platform integration, the company can generate durable competitive advantages and long-term shareholder value