Case study · Private equity · Premium golf accessories & apparel
Stitch Golf
Independent LBO underwriting of Stitch Golf, modeling a $65M acquisition of a premium golf accessories and apparel brand, operating growth, debt paydown, and sponsor returns over a five-year hold.
Hypothetical educational LBO. Stitch Golf does not publicly disclose its financial performance; all financial figures are illustrative estimates. 8AM Golf is an illustrative sponsor only — no actual relationship or transaction is implied.
Download Excel ModelView the complete assumptions, cash flows, and projected returns.
This case study models a hypothetical LBO of a premium golf brand under favorable scenarios. Returns are aggressive illustrative projections, not forecasts. Actual outcomes would depend heavily on exit multiple, brand momentum through the hold, and acquisition pricing.
Note: Some narrative summaries on this page are being updated to reflect the current workbook. Please refer to the downloadable Excel model for the most recent figures.
- Enterprise Value
- $65.0M
- hypothetical acquisition price
- Entry Multiple
- 12.0×
- on $5.44M estimated LTM EBITDA
- Levered IRR
- 49.0%
- 5-year hold · model base case
- Levered MOIC
- 6.95×
- includes interim distributions
01 · The Business
A premium golf brand, modeled for distribution-led growth and operating leverage.
Stitch Golf is a privately held premium golf accessories and apparel brand founded in 2012 and based in North Carolina. The workbook frames a hypothetical sponsor-led acquisition by 8AM Golf, exploring direct-to-consumer growth, country club distribution, international expansion, and apparel extensions. The estimated LTM 2025 baseline is $36.0M of revenue and $5.44M of EBITDA; these are underwriting assumptions, not disclosed company results.
The modeled acquisition has a $65.0M enterprise value and $66.625M of total uses, including $1.625M of transaction fees. The capital stack comprises $24.48M of senior debt at 4.5× EBITDA and $42.145M of sponsor equity. Debt carries 9.5% interest, six-year scheduled amortization, and a 75% sweep of cash available after interest and mandatory amortization. The five-year exit assumes 11.0× EBITDA, below the approximately 12.0× entry multiple.
02 · Investment Thesis
Broader distribution, premium positioning, and disciplined cash deployment.
Growth
The memo proposes stronger DTC marketing, international distribution, and apparel extensions. Revenue growth is modeled at 18% in Years 1–2, 15% in Years 3–4, and 12% in Year 5, reaching $74.2M at exit.
Operations
Gross margin rises from 59% to 64%, while operating expenses grow more slowly than revenue. EBITDA reaches $22.8M and approximately 31% of sales — an aggressive outcome explicitly flagged in the workbook.
Capital
Scheduled amortization and the 75% cash sweep reduce debt to roughly $11K at the end of Year 3 and repay it in Year 4. The exit case assumes a one-turn multiple contraction rather than valuation expansion.
03 · Financial Analysis
EBITDA reaches $22.8M by Year 5.
Modeled EBITDA rises from a $5.44M LTM baseline to $7.98M in Year 1 and $22.81M in Year 5. The Returns schedule shows a $250.9M exit enterprise value, 49.0% levered IRR, and 6.95× MOIC including interim distributions. Figures here follow the operating, financing, and returns schedules; some narrative summaries in the workbook retain different rounded or earlier values.
- Levered IRR
- 49.0%
- Levered MOIC
- 6.95×
- Exit EBITDA
- $22.8M
- Exit Enterprise Value
- $250.9M
- Debt at Exit
- $0
04 · Key Assumptions
Underwriting Summary
- Enterprise Value
- $65,000,000
- Sector
- Premium Golf Accessories & Apparel
- Illustrative Sponsor
- 8AM Golf · hypothetical only
- Estimated LTM Revenue
- $36,000,000
- Estimated LTM EBITDA
- $5,440,000
- Senior Debt
- $24.48M · 4.5× EBITDA
- Sponsor Equity
- $42,145,000
- Interest / Amortization
- 9.5% / 6-year schedule
- Cash Sweep
- 75% of available cash
- Hold / Exit Multiple
- 5 Years / 11.0×
05 · Analyst Takeaway
Key Takeaways
The modeled return is primarily an operating-growth case: the returns bridge attributes approximately 99% of gross equity value creation to EBITDA growth and 12% to debt paydown, offset by an 11% drag from multiple contraction. The central risk is execution — more than doubling revenue while lifting EBITDA margin to approximately 31%. Sources & Methodology explicitly treats this base case as an upside scenario. The 49.0% IRR and 6.95× MOIC should therefore be read as illustrative model outputs, not expected company performance or an investment recommendation.