L.A.B. Golf sold to private equity firm

[Bsch189]

2 hours ago, norcaltrojan said:

I feel like at 160,000 units last year the narrative around all the heads being milled in small shops in Oregon is completely unrealistic

Heh, 160.000 units milled in Mexico is completely unrealistic too... Here's the real route of any of the big American OEM: China -> Mexico -> USA. Off the rack is often milled/made in China, parts are shipped to and assembled in Mexico, shipped to the US and sold/distributed in the US and globally.

[Duct Tape]

On 7/28/2025 at 1:38 PM, Arlin964 said:

Well now im a little bummed with the assumption that we probably won’t get a 20% Black Friday discount this year. That’s my once a year LAB order. 

Just how many LAB putters does a person need?  🤓🧐

[jda]

53 minutes ago, WesternRacing said:

 

Spent my entire career doing this, and I agree with a lot of what you said, but not all.  The challenge with extrapolating company valuation from a partial investment lies always in the terms and structure of the deal.  Based on the numbers quoted, if the buyer did take a majority ownership position (I.e, if by control they mean 51%+, not minority with controlling rights), then the valuation number is likely simply a gross up of that number and is a fair indication of value for the company.  There’s no way they paid $20-25 for 51% and then disclosed it at $200 million.  It would make no sense.

 

Where the public disclosure gets stupid is when a VC buys a minority preferred equity position with all sorts of rights and preferences that adds value to their shares over and above the other classes, and then that transaction is extrapolated over the entire equity pool.  That is almost always wildly inaccurate, unless the company is very close to a transaction.

 

As regards selling controlling interest, I’ve had numerous clients sell controlling interests in their private company when they were ready to at least partially exit.  In doing so, they demanded/commanded a much better valuation than they would have otherwise gotten.  It’s not only a valuation issue for many of these entrepreneurs, it’s derisking their financial future, which is very important to a lot of people.

 

I get it.  Sold 3 companies.  Unless it says cash or there is a FTC required disclosure down the road, then I just wanted people to not assume that LAB got paid $100+ million right now.  They company can be valued in a multitude of ways and they are always jacked up to the press - if if Enron bought LAB, then mark-to-market would value them at least for 10 trillion, right?  Again, our company valued at $5 after nationwide presence, 20% market share, 50% in-store adoption, and all of that.  Pure fantasy.  I hope that they got 100 million - I am a small business owner, so good for them if they did... the American Dream.

 

I will never accept a gross-us calculation without confirmation.  I am sure that you have seen too much tomfoolery to trust this.  When deal details are hidden and "valuation" numbers given, it is always less... at least in my experience where investors want to brag about how good of a deal that they got, so they fluff up the value.

 

I also understand exits.  However, you cannot trust that the guys want to stick around and run things like they always have AND that they sold a controlling interest.  Pure contradiction.  I also think that this is likely a Soft Exit PE 101, but most on here will not want to believe this.  WRX will want to think that the guys sold at the top of the market to some suckers who don't know better and will get to run things how they want forever.

 

My guess at $20-25m is because I don't believe that they made 160,000 putters a year with that facility and staff (like maybe 1/10th this much), probably are full of debt since they could not expand themselves and could not get a loan or better deal and keep the business to themselves if they had orders for 400K putters at average $600 each which is $240,000,000 this year.  Even 160K putters at $600 each is $94,000,000.  Only a clown could not make a company work if all of this is true.  Out of curiosity, what all that you have seen and heard, what do you believe and think that the cash outlay was?

[Duct Tape]

20 hours ago, TiScape said:

A Louis Vuitton branded OZ.1i… Now I’d buy that! 😊

 

 

I somehow knew I’d stumble across something witty from you somewhere in this thread…. 😀

[Arlin964]

16 minutes ago, Duct Tape said:

Just how many LAB putters does a person need?  🤓🧐

Who says I keep them? lol. This is WRX!

[Duct Tape]

I’m hanging on to my new DF-3 for a few weeks then will try the “last of the originals” sale schtick!  
 

 

Some good stuff from some posters here who seem to know their PE stuff. I thought I was knowledgeable as a recent PE target, but learned a lot.   
 

 

We’re not all just 4 handicap (or better) golfers here. 🤓🏌🏼‍♀️

 

[Joe85]

How did they (he?) start? If I wanted to find some their first putters, what search terms would I use? 

 

Curious to see how a company like this started off and how rough (or quality) their first offerings may have looked. 

[dcmidnight]

43 minutes ago, jda said:

My guess at $20-25m is because I don't believe that they made 160,000 putters a year with that facility and staff (like maybe 1/10th this much), probably are full of debt since they could not expand themselves and could not get a loan or better deal and keep the business to themselves if they had orders for 400K putters at average $600 each which is $240,000,000 this year.  Even 160K putters at $600 each is $94,000,000.  Only a clown could not make a company work if all of this is true.  Out of curiosity, what all that you have seen and heard, what do you believe and think that the cash outlay was?

 

To your first point, I know they dont mill the heads at their HQ but even just assembly you're talking...438 putters a day going out the door 365 days a year? OK, maybe the heads could be milled. But the assembly of that many? I dont know. I went back and rewatched the video I saw where Sam said their labor time were 10x what their competitors were because every one has to be balanced. Every putter goes through a dozen employees. Their shop looks like such a high end, high quality, high QC operation...I dont know how they move 400+ putters through there a day.

 

But second, if you did that much, thats close to $100M in revenue? Would be interested to hear how having books like that couldn't attract better finance options.

Edited July 29 by dcmidnight

[WesternRacing]

4 hours ago, jda said:

 

I get it.  Sold 3 companies.  Unless it says cash or there is a FTC required disclosure down the road, then I just wanted people to not assume that LAB got paid $100+ million right now.  They company can be valued in a multitude of ways and they are always jacked up to the press - if if Enron bought LAB, then mark-to-market would value them at least for 10 trillion, right?  Again, our company valued at $5 after nationwide presence, 20% market share, 50% in-store adoption, and all of that.  Pure fantasy.  I hope that they got 100 million - I am a small business owner, so good for them if they did... the American Dream.

 

I will never accept a gross-us calculation without confirmation.  I am sure that you have seen too much tomfoolery to trust this.  When deal details are hidden and "valuation" numbers given, it is always less... at least in my experience where investors want to brag about how good of a deal that they got, so they fluff up the value.

 

I also understand exits.  However, you cannot trust that the guys want to stick around and run things like they always have AND that they sold a controlling interest.  Pure contradiction.  I also think that this is likely a Soft Exit PE 101, but most on here will not want to believe this.  WRX will want to think that the guys sold at the top of the market to some suckers who don't know better and will get to run things how they want forever.

 

My guess at $20-25m is because I don't believe that they made 160,000 putters a year with that facility and staff (like maybe 1/10th this much), probably are full of debt since they could not expand themselves and could not get a loan or better deal and keep the business to themselves if they had orders for 400K putters at average $600 each which is $240,000,000 this year.  Even 160K putters at $600 each is $94,000,000.  Only a clown could not make a company work if all of this is true.  Out of curiosity, what all that you have seen and heard, what do you believe and think that the cash outlay was?

 

Agree, the founders didn’t get $100 million in cash.  They likely sold some of their shares in the deal and the remainder was new equity capital into the business.  So they probably got millions in cash out of the business and kept a minority interest in the business that ensures they remain engaged for at least a significant transition period.  [EDIT: just read the founder’s post and actually it sounds like they did sell a large majority share, so they likely did get over $100 million is cash out of the sale…]

 

I heard from somebody close to one of the founders a while back that the company was shipping over 10k putters a month over a year ago, so I could easily see 160k putters going out the door in 2025.  Given their product pricing and their obviously large profit margins, their valuation should absolutely be over $200 million.  My guess would be well over.  All I’ve read is that it is ‘over $200 million’.  The data may be out on CapIQ, but I don’t have access anymore since I retired.

Edited July 30 by WesternRacing

[ochowie]

2 hours ago, shankasaurus rex said:

The lack of business acumen willing posted in this thread is hilarious. Thanks to all that have posted a more balanced (and fact-based) view of PE investment.

I think it's a matter of perspective for some of the people in this thread. I think this has the potential of being a good move for LAB. LAB's obvious strength is their ability to innovate (head shapes, press grip, and maybe even a heal shafted version if the prototype makes it to market) while their glaring weakness is the operation's ability to scale. I'd hope that LCat drives them to focus on their strength while streamlining their operations. I see LAB continuing to roll out new putter models but greatly reducing their custom options (do they really need 20+ different alignment markers?) and greatly streamlining their supply chain (how many people have had their putter delayed because TPT can't deliver shafts fast enough because LAB is their only putter customer?). To me the future LAB looks more like a traditional putter company than what it is today. To me, I think it's a win as that's the only way LAB will stick around for the long term, but for many original fans of LAB this will be seen as a big loss.

[snagy2000]

1 hour ago, Duct Tape said:

Just how many LAB putters does a person need?  🤓🧐

At least 3...

[NosajNeelik]

On 7/28/2025 at 5:45 AM, typhoonoid said:

Bill Presse confirmed on Facebook post. Hope they remain the same mostly. Maybe get a cash infusion to speed up production. 

It’s all roses now….until it isn’t. Now he’s just a number. When the seller says “hopefully I’ll be involved…” that’s not a good sign 

[manVSgolf]

2 hours ago, Duct Tape said:

Just how many LAB putters does a person need?  🤓🧐

Don’t ask.

[WesternRacing]

1 hour ago, NosajNeelik said:

It’s all roses now….until it isn’t. Now he’s just a number. When the seller says “hopefully I’ll be involved…” that’s not a good sign 

 

He’s just cognizant of the fact that he is no longer in control.  But they’ve got 200 million reasons not to be overly concerned…

[3puttavoidance]

12 hours ago, Rory4Pres said:

So one of the differences that will come out of this is right now Lab only had 1 cnc machine (i think, that could have changed recently) that was primarily used for R&D.  They were outsourcing the production of the machined heads from local cnc machine shops.  I expect that to change.  They will likely invest in a bunch of cnc machines to do the production of the heads in house.  Typically these cnc machines range somewhere between $250k-$1/mil each so it takes a big investment to bring that in house.  Just as easily, they could choose to source the machined parts from china in bulk.  White rust on the aluminum would become a major concern if they went that route.  Yes, they would obviously try to remove that and then paint them but often times it impacts the quality of the paint job and really impacts the quality of the finish of the putter long term.  So this would be an example of a decline in quality if they were to go through China.  

The days of presuming lower quality because it comes from China are long gone. Only recently we have had the CEO of Apple reaffirm their product is made in China because of quality. And then we have had the CEO of Ford say it was the most humbling experience ever to see production in China. Like it or not if we aren't already there we will soon be at the point where made in the USA actually signals poorer quality 

[braincramp52]

6 hours ago, 3puttavoidance said:

The days of presuming lower quality because it comes from China are long gone. Only recently we have had the CEO of Apple reaffirm their product is made in China because of quality. And then we have had the CEO of Ford say it was the most humbling experience ever to see production in China. Like it or not if we aren't already there we will soon be at the point where made in the USA actually signals poorer quality 

As much as I hate to say it about the quality, we've been there for a while.

[Ger21]

6 hours ago, 3puttavoidance said:

The days of presuming lower quality because it comes from China are long gone. Only recently we have had the CEO of Apple reaffirm their product is made in China because of quality. And then we have had the CEO of Ford say it was the most humbling experience ever to see production in China.

 

The best electric cars in the world are made in China. And nobody in the US is even aware of them, because if they were sold here, they'd put all the domestic automaker's out of business.

We get an inferior product at twice the price.

[dcmidnight]

13 minutes ago, Ger21 said:

 

The best electric cars in the world are made in China. And nobody in the US is even aware of them, because if they were sold here, they'd put all the domestic automaker's out of business.

We get an inferior product at twice the price.

 

Yep. Just watching some of the YouTube reviews is enough to get you to never pay 3x for an American made one.

 

My guess is that LAB will look at the cost outlay and realize its just not worth it milling the heads at a shop down the road just so you can say they are made in the USA. You can make them in China for 1/10th the cost and maybe you still market them as "assembled" in the USA. Suddenly your margins have gone through the rood and the quality is high enough that no one can tell. Or cares.

 

Just look on Ali Express/Temu or watch some reviews of the knockoffs. These putters are already being cloned to a "good enough" level - and thats without the company being involved.

[NosajNeelik]

10 hours ago, WesternRacing said:

 

He’s just cognizant of the fact that he is no longer in control.  But they’ve got 200 million reasons not to be overly concerned…

The conversation is about the company and if the quality will change, not a single persons bank account 

[NosajNeelik]

2 hours ago, Ger21 said:

 

The best electric cars in the world are made in China. And nobody in the US is even aware of them, because if they were sold here, they'd put all the domestic automaker's out of business.

We get an inferior product at twice the price.

The made in USA dream/propaganda machine tugs at the sleeves of blind patriotism not reality. 

[NRJyzr]

2 hours ago, braincramp52 said:

As much as I hate to say it about the quality, we've been there for a while.

 

70s US auto industry might be a notable example...

 

[WesternRacing]

10 hours ago, 3puttavoidance said:

The days of presuming lower quality because it comes from China are long gone. Only recently we have had the CEO of Apple reaffirm their product is made in China because of quality. And then we have had the CEO of Ford say it was the most humbling experience ever to see production in China. Like it or not if we aren't already there we will soon be at the point where made in the USA actually signals poorer quality 

 

Agreed, but that’s production, not product.  There is still often a difference between the average Western designed and spec’d product that is manufactured in China and a product that is fully designed and built in China.  Design and build quality still varies dramatically depending upon the product you’re talking about.

 

Edited July 30 by WesternRacing

[WesternRacing]

3 hours ago, Ger21 said:

 

The best electric cars in the world are made in China. And nobody in the US is even aware of them, because if they were sold here, they'd put all the domestic automaker's out of business.

We get an inferior product at twice the price.

 

Hmmm, from a cost and range perspective, yes.  From an overall design perspective, no.  Have you seen the interiors on some of the Chinese EVs?  It’s an oversimplification to assume China is making vastly superior, or inferior, products.  What they are doing is subsidizing manufacturing so that they can flood the market with cheaper cars.

[WesternRacing]

1 hour ago, NosajNeelik said:

The conversation is about the company and if the quality will change, not a single persons bank account 

 

And you made a comment about whether he’ll be engaged in the business.  His perception of control and his newfound wealth are relevant to that discussion.  But thanks for the volunteer forum moderation.  Always a gift.

[dono]

FWIW, MGS did an interview with Sam about the acquisition. 

[jda]

You can get all kinds of quality out of China, or other places.  The folks who assume that China is the reason that a product suffered are being too simple - the company has asked for the product to be made cheaper and it just happened to have been China that did it.  Not all overseas stuff is garbage and China can make really nice things if you want them to.  Conversely, there is garbage that comes out of Japan and Germany too.

 

My only real issue dealing with China was IP theft - this is a huge problem that nearly nobody talks about.  They would have made as high, or low, of quality as we wanted.  Once the quality got high, China was not cheaper anymore.

[Pnwpingi210]

11 minutes ago, jda said:

You can get all kinds of quality out of China, or other places.  The folks who assume that China is the reason that a product suffered are being too simple - the company has asked for the product to be made cheaper and it just happened to have been China that did it.  Not all overseas stuff is garbage and China can make really nice things if you want them to.  Conversely, there is garbage that comes out of Japan and Germany too.

 

My only real issue dealing with China was IP theft - this is a huge problem that nearly nobody talks about.  They would have made as high, or low, of quality as we wanted.  Once the quality got high, China was not cheaper anymore.

This x1000

[jda]

16 hours ago, WesternRacing said:

I heard from somebody close to one of the founders a while back that the company was shipping over 10k putters a month over a year ago, so I could easily see 160k putters going out the door in 2025.

 

Got an anonymous message to look at other companies putter numbers (I know...).  Seems that SC sells around 7,000 putters a month and Callaway reported just over $90m putter sales globally last year with Odyssey likely making up the bulk of this.  There is no way that LAB is making 10,000 putters a month unless they are dumping them in the East River (or however the old saying goes), or outgrossing Odyssey.  I am guessing 50-100 units for 22 working days... like 50 custom and 100 stock?  Also not buying a increase in numbers since orders have not stopped and the horrible lead time has been constant, not increasing.

 

They might have shipped 10K putters one month to a few nationwide chains.  I might be able to believe this if they were all assembled with outside help.  I still do not totally buy this.

[Ger21]

51 minutes ago, jda said:

My only real issue dealing with China was IP theft - this is a huge problem that nearly nobody talks about. 

 

Just go to Ali Express to see 100 sellers offering fake DF3's.

[mshills]

On 7/29/2025 at 4:54 AM, AlpineGolf said:

 

Financial journalists rarely get this right. Most of the time, official deal values are enterprise values on a cash-free, debt-free basis, rather than equity values of specif stakes acquired. For startups, that usually ends up being pretty close to the overall equity value, since they typically don’t have much, if any, debt.

 

 

I’m having a hard time buying the idea that LAB can scale to 390,000 units per year. Reports indicate they produced around 130,000 units last year, and projecting a 3x increase for 2025 seems pretty ambitious given the underlying requirement to scale production (putters aren’t software...). For an equipment manufacturer, I’d typically expect normalized EBITDA margins in the 10–20% range. LAB may be on the lower end, given its earlier stage, but for valuation purposes, let’s assume a normalized margin.

 

If we take the unit volume and average selling price at face value and use an average case, we land somewhere between $4 million and $23 million in stabilized EBITDA—the former being the low end (lower margin x 2024E sales), and latter the high end (higher margin x 2025E sales). Let’s split the difference and use $14 million as a base case. Assuming the reported $200m enterprise value is accurate, that implies an EBITDA multiple north of 14x. Is that high or low compared to comps? It depends—but that’s definitely rich, especially for a niche player.

 

To be clear, I fully recognize this is a growth PE transaction. However, the TAM (total addressable market) is inherently limited, and the business doesn’t offer the kind of scaling potential you’d see e.g. in a typical tech investment.

 

Yes, the growth story helps justify a premium, but having spent the past decade in private equity, I can say institutional investors are typically wary of "one-trick ponies." Revenue concentration, trend/fad risk, and lack of product diversification are real concerns.

LAB is heavily reliant on one innovation—zero torque putters. Larger competitors offer a broader lineup and are better insulated from shifts in consumer trends. If the novelty fades or zero torque falls out of fashion, sales could drop off sharply. Competitors moving into the ZT space could put pressure on prices.

 

So, even if we accept the current estimates and assumptions, this valuation doesn’t look cheap—especially given the execution risk and uncertainty.

 

Thank you for bringing some sanity to this thread….that is where my head is as well. What I don’t believe:

 

Ability to scale to ~400k units

15% adj. EBITDA, unless “adj.” is quite large

 

…so I can’t squarely back into a $200M valuation.

 

However, I am not, nor would I ever, fund or invest in anything in the business of golf.