Record Label with Recurring Royalty Income & $800k in Inventory

Listing Number: 21997-141200

Listing Details

Record Label with Recurring Royalty Income & $800k in Inventory
Price: $2,000,000
Location: Maricopa County, Arizona
  • Down Payment: $2,000,000
  • Sales: $651,779
  • Seller's Discretionary Earnings: $175,261
  • Inventory: $800,000
  • Furniture, Fixtures, and Equipment: $30,000
  • Rent: $4,000
  • Employees: 5
  • Year Established: 1993
  • Reason for Selling: Retirement

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Business Listed By
Darrell Doust
License # SA710884000
IBBA
President's Club

Business Description

Here is a unique opportunity to acquire a well-established independent record label with a 30-year history of success. Based in Scottsdale, Arizona, the label has built a global reputation for producing high-quality, collectible reissues of classic rock, country, and progressive music. With a catalog featuring more than 300 artists and licensing agreements with major labels like Sony, Universal, and Warner, this business represents a significant piece of music history.

The label's core value is its extensive intellectual property, built upon a diverse catalog of over 200 artists. This collection spans decades and genres, including Classic Rock, Southern Rock, Blues, and Progressive Rock. The roster features iconic names such as Journey , Supertramp , Jefferson Airplane , Shania Twain , and Joe Cocker. These partnerships, along with long-standing licensing agreements with major labels and artist estates, generate reliable and recurring royalty income. Revenue is sourced from global physical, digital, and streaming sales, providing a consistent income stream that underscores the long-term value of the catalog.

Asset-Based Valuation The asking price of $2,500,000 is driven by the company's substantial assets rather than a multiple of its profitability. The primary assets underpinning this valuation include:

Valuable Physical Inventory: The business includes an inventory of vinyl records and CDs valued at approximately $800,000.
Extensive Intellectual Property (IP): The core asset is the label's vast IP catalog, which generates recurring royalty and licensing income. This includes active licensing agreements with major record labels and direct partnerships with over 200 artists and their estates.

Key Investment Highlights:

Established Brand: Three decades of brand credibility and a trusted global reputation.
Recurring Revenue: The company earns consistent income from royalties through global physical, digital, and streaming sales
Global Distribution: Established wholesale and direct-to-consumer sales channels across North America, Europe, and Japan.
Positioned for Growth: The business is perfectly positioned to capitalize on the growing demand for vinyl and physical media collectibles.
Transition Support: The founder is committed to a smooth transition and is available to remain with the business as an employee or consultant for 2-3 years post-sale.

This is an ideal acquisition for a music entrepreneur or an investor looking to own a legacy label with scalable operations and a strong foundation in the booming collectibles market.