All Alaska Outdoors - How do you value this incredible fishing lodge and real estate?
Jun 20, 2024
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In this conversation with Dr. Bob Ledda, owner of All Alaska Outdoors and an emergency medicine physician, listeners get an insider's look at running a renowned fishing lodge in Alaska. Dr. Ledda shares insights on the balance between his medical career and outdoor adventures, providing a unique experience for guests. He dives into the complexities of valuing the lodge, discussing both financial dynamics and the importance of marketing. With impressive growth metrics and a viral YouTube hit, the future of the lodge is as intriguing as its past.
The All Alaska Outdoors fishing lodge combines remote flyout and local fishing experiences, appealing to diverse visitors seeking authentic Alaskan adventures.
Dr. Bob Ledda emphasizes the importance of timing and management for a successful sale, considering both financial performance and family involvement in the future.
Deep dives
Business Model and Offerings
The fishing lodge operates as a blended model that combines elements of both remote flyout fishing experiences and local fishing adventures. Located about two and a half hours from Anchorage, it provides access to both river and ocean fishing opportunities, capitalizing on its ideal location on the Kenai Peninsula. Guests can engage in numerous activities, including drift trips, powerboat excursions, and multiple flyout destinations, all while keeping costs manageable by leveraging nearby restaurants and grocery stores. This approach creates a competitive pricing structure that appeals to a diverse range of visitors seeking authentic Alaskan experiences.
Financial Performance and Valuation
The lodge has seen significant growth in its financial performance, with revenue increasing from $1.2 million to $1.7 million over the course of a year. The profitability has also improved substantially, with expectations of reaching around $400,000 to $500,000 in profit based on the latest revenue figures. With a well-established brand and successful marketing strategy, notably through viral YouTube videos, the lodge's valuation is calculated to be between $2 million and $3 million, considering both hard assets and intangible factors such as goodwill. The operator acknowledges that selling the lodge at the right time and under favorable conditions could yield optimal financial returns.
Operational Challenges and Family Involvement
Operating the fishing lodge has required a significant time commitment and family involvement, particularly from Dr. Bob and his wife, which has raised questions about long-term sustainability and future involvement. With their children growing up and one child opening a massage studio adjacent to the lodge, there's potential for the business to evolve into a family enterprise. The lodge manager's dedication also plays a pivotal role in ensuring smooth operations, allowing Dr. Bob to explore eventual exit strategies without being solely responsible for day-to-day management. The success of the lodge may hinge on maintaining capable management while considering whether to pass the business on to family members.
Planning for the Future and Potential Exit Strategies
Dr. Bob is optimistic about the lodge's future growth and profitability, predicting that improvements in occupancy and marketing could lead to revenues exceeding $2 million within the next few years. As he considers potential exit strategies, he reflects on the importance of timing and the intricacies of a sale involving intangible assets, such as the lodge's strong reputation. He emphasizes that a successful transition would involve proper communication and clear agreements regarding financial assets and management responsibilities to avoid complications during the selling process. While retirement remains a distant consideration, selling the lodge could be a viable option, depending on ongoing performance and family involvement.
Dr. Bob Ledda has built an incredible fishing lodge in Alaska, All Alaska Outdoors. The world class fishing, bear viewing, and remote access has made them famous - as evidenced by a recent viral YouTube video from Wild Fly with +2.2M views. We discuss how the business continues to grow, what it could be worth, and if Dr Bob would sell soon.
The lodge: https://www.allalaska.com/ WildFly YouTube video: https://www.youtube.com/watch?v=kFf-csP-bro
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