Mike Corbin sold his first handmade motorcycle seat, for $40, back in 1965 at a rally in Grafton, New Hampshire. He went on to found Corbin-Pacific, which last year sold more than $14 million worth of custom seats, saddlebags, fenders, and other gear to bike enthusiasts and dealers. Corbin, 65, has had a good run, and now he is ready to cash out.
The company, which employs 115, operates from an 82,000-square-foot facility in Hollister, California, the setting for the prototypical biker film The Wild One, starring Marlon Brando. The 7-acre plot of land on which the plant sits is also for sale, for $7.2 million, as is an 11,000-square-foot showroom in Daytona Beach, Florida, for $3.2 million.
The purchase price includes 1,500 seat molds and 82 patents and copyrights. About 75 percent of Corbin-Pacific's sales are straight to consumers; the rest are to dealers that sell BMW, Ducati, Harley-Davidson, and other brands. Corbin-Pacific's image also gets a boost from such high-profile customers as Arnold Schwarzenegger and Jay Leno.
Corbin is hoping for a buyer who loves bikes as much as he does. He holds the land-speed record for an electric two-wheeler: 165 miles per hour, set in 1974. Says Corbin: "You can't be successful in the motorcycle business unless you love these machines and the people that ride them."
Price Rationale: Corbin and his broker based the price on the value of the company's seat molds, which they set at $9 million.
The Pros: The business employs six managers, each with at least 10 years of experience working for Corbin-Pacific. The company has a solid reputation for design and quality, and its most popular seats are patented. Sales of motorcycles have surpassed one million for each of the past six years.
The Cons: Production slowed and profits plummeted last year after undocumented workers were let go and new workers were hired and trained.
The Bottom Line: Cash flow has taken a hit in recent years, perhaps arguing for a lower price. Still, Corbin-Pacific has a strong brand with devoted customers. The best fit might be an existing manufacturer that could extend to its products the value of the brand.
