AS AN INVESTMENT OPPORTUNITY
December 10, 2012
Assessment of KAP7 International, Inc. as an Investment Opportunity (2012)
The objective of this assessment was to evaluate KAP7 International, Inc. as a potential investment opportunity through primary and secondary research. This opportunity assessment attempts to provide the scope of KAP7’s water polo cap market opportunity analysis, current water polo cap marketing program and partnerships, product technology and overall business model for growth in a niche environment.
KAP7 International is a privately held company that aims to provide products which promote and advance the game of water polo, as well as supporting the community and culture around the sport. With a strong presence in the water polo community as the result of a few high profile members of their management team, KAP7 has partnered with the governing body for the sport in the United States to provide caps, suits and apparel to the Olympic teams and development program. In addition, the two organizations recently launched a marketing program centered around the water polo cap, which has increased KAP7’s water polo cap sales.
The water polo cap is a Class-1 medical device aimed to prevent injury to players’ ears. Prior to the launch, KAP7 had negotiated long-term licensing rights to market and sell the TURBO brand water polo caps and products in the United States. TURBO brand caps are considered to be the toughest in the world as the result of proprietary material. The market opportunity for water polo caps is strong on a year by year basis given the increasing popularity of the sport, as well as, the fact the cap is a mandatory piece of equipment used during practice and play. KAP7 continues to beat sales forecasts on a quarter by quarter basis and has a strong return on investment (ROI) across product lines, according to one of its founders Brad Schumacher.
Based on the research gathered, the current recommendation is to invest in KAP7 at this time.
KAP7 International, Inc. - Investment Opportunity Assessment
OBJECTIVE AND METHODOLGY
The objective of this research was to evaluate KAP7 International, Inc. as a potential investment opportunity. This report was generated using public information that was obtained through online research as well as interviews with one of the founders.
KAP7 International, Inc. is a “functional aquatic lifestyle sporting goods company.” With significant expertise in water polo, KAP7 aims to “provide best in class products required to play the game and cutting edge equipment to raise customers’ level of play in order to ultimately create a culture around the sport.” Founded by aquatic greats Bradley Schumacher and Wolf Wigo, KAP7 is comprised of five (5) former collegiate athletes. Together they have participated in twelve (12) NCAA Water Polo Championships, three (3) NCAA Swimming Championships, two (2) NCAA Swimming Finals and claimed seven (7) NCAA Water Polo titles. Based on many years of combined experience, KAP7 was formed to design and build innovative world class products for the water polo community. The company’s core message is “Built by Water Polo Players, For Water Polo Players.”
In January 2011, Todd Snider partnered with founders Bradley Schumacher and Wolf Wigo as President and CEO to oversee day to day operations, develop and implement strategic initiatives to spur innovation and efficiencies, and drive the company to the next stage of growth. Todd attended Stanford University where he graduated in 2002 with a MA in Sociology and a BA in Sociology in 2001.
Water polo was played as “football in the water” starting around 1870 in England. It was not until 1900 that water polo was the first team sport introduced in the Olympic Games. The inclusion of...