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Enduring Profitability: Investment Considerations In The Endurance Event Industry
Kwiecien, Zach
Kwiecien, Zach
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2019
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2019-05-19
Abstract
This thesis analyzes the investment considerations associated with the Endurance Event Industry. To accomplish this, I examine the characteristics, demographic patterns and motivations of primary industry stakeholders including: (i) participants, (ii) companies, and (iii) investors. Furthermore, I address investment opportunities, risks and valuation techniques used by institutional and private investors. Methods used to address the objectives above include qualitative research through interviews with industry players such as those involved in the operations and planning of events and institutional investors who have invested in the space. Quantitative analysis is performed through the use of public companies with ties to the Endurance Event Industry. These public comparables are used as a proxy for industry performance of valuation metrics over the last ten years. Data analyzed includes total returns, volatility and valuation multiples. The industry appears to be sound with strong enduring tailwinds. However, there are significant risks and limitations that can make profitable investing difficult for both institutional and retail investors. Investing in companies that host events poses risk associated with low entrance barriers, an accelerated maturation curve, a dependence on brand reputation and limited growth opportunities. Investing in public companies with ties to the industry offer the potential for high returns, but tend to be highly volatile and relatively expensive compared to the overall market.
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Finance