Ever wanted to be in the business of triathlon? Or

Triathlon Forum
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…to own a business in this sport?

What about De Soto Sport?

Since 1990, I’ve said, “I love what I do so much, I can’t wait to wake up in the morning.” After 35 amazing years in business, I’m now beginning the search for someone to carry forward the legacy of De Soto Sport.

I’m not necessarily looking to sell the company—though that’s one possibility. Under the right circumstances, I’m open to selling part of it, giving part of it away, or even transferring it entirely to the right individual, or organization, even a non-profit.

Why now?

Losing my mother in 2020 and my father in 2024 has profoundly affected me in different ways. These experiences have prompted deep reflection on my future, the time I have left, and how I want to spend it—with family, friends, and pursuing other passions.

For much of my career, I thought I’d work at De Soto Sport forever. Initially, I imagined growing the business to eventually sell it. But 25 years ago, I realized I didn’t want to do anything else. So instead of chasing growth, I focused on profitability, using earnings to fund other projects that have brought great fulfillment.

I also firmly believe my children should be free to follow their dreams, not feel pressured into continuing the “family business.” I want them to carve their own paths, as I have carved mine.

As I approach my 65th birthday in March, I still love what I do and have the energy to continue, but I also want to ensure the future of De Soto Sport is in the hands of someone who shares my passion and drive. This business has been running smoothly for decades, and I’m searching for the right person who has what it takes to keep it thriving.

To be clear, we are not in going bankrupt. De Soto Sport is well-capitalized, with substantial cash and assets. I am healthy, I am still fit but not fast. Thanks to my wife, I eat very healthy, I take no medications, and I am very energized, and excited about life. If I were ready to walk away, I could simply close the business and never work again. But I still love this company, and I want it to succeed for many years to come.

If you’ve interacted with me—whether in person, by phone, email, or PM on the forum—you know my boundless enthusiasm for textiles, apparel, innovations, and De Soto Sport. My timeline for this process is open, as this decision is still in its early stages.

If you are seriously interested in exploring this opportunity, please feel free to reach out via the email: emilio@desotosport.com

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Point of note, it does not appear you have a signature currently (maybe the change over removed it…)

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thank you, just created a link.

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One path to consider is bringing on a company president to learn and help run the business with the goal of them being able to MBO in 2-4 years. That way they get to learn the specifics of the business and you get to know you’re leaving it in good hands.

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I would warn against this

I had a sports company which I did as you suggest a president came in with the idea of selling at a price based upon net income in 2.5 years.

When he became President I was doing a bit over $400,000 a month 2 years later it was $400,000 a YEAR!

Fortunately I was able to get out of the contract and took back control of the company

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That sounds like an issue with perverse incentives. It highlights the importance in creating win-wins in any mutual business endeavor.

It’s analogous to how talent in Hollywood insists on a % of box office, not profit. Thanks to creative accounting the joke goes that Gone With the Wind should break even any year now.

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Titanflex

Glad to hear this technique worked well in selling your business

Congratulations

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I would love to do something like that, or more accurately, I would have loved to do something like that 10-15 years ago. As it is now, I’m not too many years behind you. I also just started a 2nd career a few years back. My focus has been on setting myself up for a time when I can retire, so as much as it seems like a good opportunity for the right person, that person needs to be younger, more energetic and dedicated to the sport.

But having purchased a couple of your products I can vouch for the quality. But it’s not like you need my word. I’ve never heard anybody with a bad thing to say about DeSoto anyway.

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Sounds like you don’t know who Emilio is?

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Now this is really interesting for me as a business valuator - not sure if I got it right though.

The business was making 400k a month (4.8m a year) in net profit? And the incoming president suggested the business be sold for about $12m, which you had no interest in, and then net profit came down to $400k a year?

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Wow, business value evaluator where were you when I needed you lol

I started a little company out of my house and it turned into something much bigger than I ever expected. I was way over my head. Didn’t know what I was doing looking back. I definitely should’ve gotten the advice of some experts.

It was 400k in sales

I meant that he would take over his president run it for 2 1/2 years with me doing minimal help and then based upon the sales after that 2 1/2 years that would determine the price. I can’t remember what the multiplier was so many years ago

But definitely bad decision on my part and his part he was happy to get out of it. I didn’t really wanna take it back over, but I did and ran it for a little while myself.

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What makes you say that

I’ve purchased thousands of dollars worth of his great triathlon equipment over decades

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Sounds like the president could buy the business for 2.5XARR at the end of the 30 months. That created an incentive for him to temporarily drive down sales to get a lower sales price (or maybe the president just sucked at running the business). Fortunately it looks like they were able to unwind the deal. MrTri123 can say if I’m reading that correctly.

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