Latest / The Buyout Show with Fexingo: Private Equity, Roll-Ups, and Business Acquisitions / How Private Equity Is Buying Up Gun Range and Shooting Clubs
Transcript
- Lucas: So there's a corner of the private equity roll-up world that I think surprises a lot of people — shooting ranges. Gun clubs. The kind of place where you go on a Saturday to sight in a rifle or take a concealed-carry class. Luna: I have to admit, I didn't see that one coming. I mean, we've talked about vet clinics, pet cremation, even church buildings — but ranges feel different. Lucas: Different how? Luna: Well, for one, there's the regulatory headwind. And two — the optics. Private equity buying up gun-related businesses isn't exactly a feel-good story for the mainstream. Lucas: Right, and that's part of why it's flown under the radar. But the numbers are real. Since 2020, we've tracked roughly 300 independent ranges that have been acquired by two main platforms — RangeReady and FirstPoint. These are firms that manage the back office, the insurance, the supply chain — and they keep the local branding. Luna: So it's like the dental practice model but with Glock instead of fillings. Lucas: Exactly. And the economics are actually more attractive than a lot of healthcare roll-ups. Look at the unit economics of a typical indoor range. You've got membership dues — say fifty to a hundred dollars a month per member. You've got lane rental fees for non-members. And then the real margin driver: ammunition and firearms sales. Luna: Ammunition margins have to be insane right now given the demand spikes. Lucas: They are. A box of 9mm that costs the range maybe ten dollars wholesale can sell for eighteen to twenty-two dollars. That's a fifty percent gross margin. And range-owned retail — earmuffs, targets, cleaning kits — that's even higher. But the real prize is the membership revenue. It's recurring, it's predictable, and it's sticky. Luna: How sticky? Lucas: RangeReady, which is backed by a mid-market PE firm out of Dallas, reported an average member retention rate of about eighty-seven percent across its portfolio. That's better than most gyms. The reason: once you're a member at a range, you have to go through orientation again if you switch to a different range. So people just stay. Luna: That's a lock-in that Planet Fitness can only dream of. Lucas: Exactly. And the roll-up playbook here is textbook. First, you acquire a cluster of ranges in a single metro area — say, three or four in the Houston suburbs. Then you centralize procurement: all the ranges buy ammunition, targets, and cleaning supplies from the same vendors, so you get volume discounts. Luna: What about the insurance piece? That has to be a big cost for a range. Lucas: Huge. Liability insurance for a standalone range can run fifty to eighty thousand dollars a year. But when you're a platform with fifty ranges, you negotiate a single policy. You bring that cost down by maybe thirty percent. Plus, you standardize safety protocols across all locations, which lowers your claims history over time. Luna: And I'm guessing the NRA is involved in the insurance piece somehow? Lucas: They are. The NRA offers an endorsed insurance program for ranges that meet certain training standards. A lot of these pe backed platforms require their ranges to participate, because it gives members access to nra certified instructors — which is a selling point. Luna: So the branding stays local, but the operations are centralized. That's the classic 'roll up and keep the name' strategy we've seen in HVAC and pest control. Lucas: Exactly. And it works in this space because there's no national brand dominance. You don't have a 'Starbucks of shooting ranges' yet. The largest chains are still regional. RangeReady has about seventy locations, mostly in the Southeast and Texas. FirstPoint has about fifty, concentrated in the Midwest and Appalachia. Luna: That's still a tiny fraction of the total market. How many independent ranges are there in the U.S.? Lucas: Around sixteen thousand, according to the NSSF — the National Shooting Sports Foundation. So the penetration rate for PE is still under two percent. That's why the deal flow is still going strong. Luna: But here's the question I keep coming back to: what happens when a mass shooting occurs at a range that's owned by a pe backed platform? Does the liability change? Does the optics problem get worse? Lucas: It's a real risk, and the firms are acutely aware of it. That's why they invest heavily in range safety officers and membership screening. Most pe owned ranges require a background check even for members — not just for purchases, but for the privilege of using the facility. And they have zero-tolerance policies for unsafe handling. Luna: But a negligent discharge or a suicide at a range — those happen regardless of how good your safety protocols are. Lucas: They do. And when they happen, the range gets sued. The question is whether the PE platform has deeper pockets and better lawyers than the mom and pop operator. In practice, the PE firms self-insure through captive insurance entities, so they're not at the mercy of the commercial market. But a high-profile incident could still rattle lenders and make future acquisitions harder to finance. Luna: Let's talk about the regulatory side. We're in July 2026 now — have any states started scrutinizing these roll-ups specifically? Lucas: Not yet, but there's been some chatter. California has a law that requires DOJ approval for firearm business transfers, which has slowed deals there. But most states treat range acquisitions like any other small business buyout. The real regulatory wildcard is the ATF's reinterpretation of what constitutes a 'gun show' or a 'dealer' — but so far, ranges are classified as shooting facilities, not dealers, even if they sell ammunition. Luna: What about the political angle? Is there any activist pressure on PE firms to divest from firearms-related businesses? Lucas: It's interesting. You haven't seen the kind of shareholder resolutions that targeted gun retailers like Dick's Sporting Goods or Walmart after Parkland. I think the reason is that these are B2B platforms — they don't have a consumer-facing brand that's easy to boycott. RangeReady doesn't put its name on the door. The member just sees 'Austin Rifle Club' or 'Lone Star Shooting Range'. Luna: So it's almost like a stealth consolidation. Lucas: That's exactly the word I'd use. And it's allowed them to operate below the radar. But as the platforms grow and maybe go public or seek larger exit — say a sale to a firm like Leonard Green or KKR — the scrutiny could intensify. Luna: Speaking of exits — what's the endgame here? Are they building these to flip to a larger PE firm, or is there a strategic buyer? Lucas: I think the most likely exit is a sale to a larger PE firm that wants a platform in the 'recreational shooting' space. There's also the possibility of a roll-up with an outdoor retailer — think Bass Pro Shops or Cabela's acquiring a range network to drive traffic to their stores. But the more immediate play is to grow EBITDA through operational improvements and then sell to a middle-market fund looking for a platform. Luna: So the multiples are attractive? Lucas: From what I've seen on deal sheets, these platforms are trading at around eight to ten times EBITDA. That's lower than software, but higher than traditional manufacturing. And the EBITDA margins can get to twenty-five percent once you've centralized procurement and standardized staffing. Luna: The thing that still nags at me is the culture. I've been to a few independent ranges — they're often run by a retired cop or a firearms enthusiast who really cares about the community. Does that survive under PE ownership? Lucas: It's a tension we've seen in every roll-up we've covered. The PE firm wants to standardize the member experience — same safety briefing, same pricing, same hours. The local owner wants to keep the Friday night poker game and the informal gunsmithing advice. Some of that gets lost. But the counterargument is that the pe backed ranges can afford better ventilation systems, more modern target retrieval, and better insurance — which actually makes the experience safer and more pleasant. Luna: I've also heard that some pe owned ranges have started offering things like birthday parties and corporate team-building events — which feels like a shift from the traditional gun club vibe. Lucas: It is. And that's part of the growth thesis: expand the addressable market beyond the core enthusiast. If you can bring in a corporate group for a 'safe shooting experience' — complete with liability waivers and a certified instructor — you're generating revenue that the old range never captured. Luna: Let's talk about the competitive landscape a bit. Are there any other PE platforms besides RangeReady and FirstPoint? Lucas: There are a few smaller ones. Blackstone Tactical — no relation to the giant — has about twenty ranges in the Pacific Northwest. And there's a newer entrant called Firebird Holdings that's been buying ranges in Florida and Arizona. But the market is still very fragmented. I'd expect to see at least one more national platform emerge in the next eighteen months. Luna: And what's the typical deal size for a single range? Lucas: For a well-run indoor range with a strong membership base, you're looking at two to five million dollars. Outdoor ranges are cheaper — maybe one to three million — because the land isn't as intensively used. But the land itself can be a valuable asset if it's in a growing suburban area. Luna: So there's a real estate angle too. Lucas: Absolutely. Some of these acquisitions are effectively land plays. The range is a cash-flowing business on a parcel that's appreciating. If the range ever closes, the land can be redeveloped. But the PE firms I've spoken to say they intend to keep operating them as ranges — the returns are good enough without needing to flip the dirt. Luna: All right, so let's zoom out. What should a listener take away from this episode? Lucas: I think the main takeaway is that private equity is systematically acquiring the infrastructure of American hobbyist culture — and shooting is just the latest example. The same playbook we've seen in vet clinics and HVAC is now being applied to ranges. And because it's a politically sensitive space, it's happening quietly. Luna: Do you think this consolidation ultimately helps or hurts the shooting sports community? Lucas: That's the million-dollar question. I think in the short term, it brings capital and professionalism. Longer term, it risks homogenizing the experience and pushing out the independent owners who built the community. But the market will decide. If members don't like the pe owned ranges, they'll start new independents. That's the beauty of a fragmented industry. Luna: And it's worth noting that the independent ranges that sell often do so because the owner is retiring and has no succession plan. Lucas: Exactly. PE is filling a gap. A lot of these owners are in their sixties and seventies. Their kids don't want to run a gun range. So the choice is: sell to a platform or close. And selling at least keeps the doors open and the jobs intact. Luna: That's a fair point. And on that note — we should mention that this show is possible because of a small group of listeners who support it directly. If these conversations have moved your work forward or just made your commute more interesting, you can help keep it ad-free at buy me a coffee dot com slash fexingo. Lucas: Yeah, it's a simple thing — no tiers, no perks, just a way to fund the research and production. A handful of people chipping in monthly makes a real difference. Luna: And it keeps us independent. So thank you to those who already do. Now — back to the ranges. One thing I wanted to ask: what's the role of technology in these roll-ups? Lucas: Big role. The PE platforms are investing in membership management software, automated lane scheduling, and even shot-tracking systems that give shooters instant feedback on their accuracy. That data is gold — it lets the range upsell coaching sessions and target packages. Luna: So it's not just about buying ranges and cutting costs. It's about digitizing the experience. Lucas: Exactly. The old range had a spiral notebook for reservations. The new range has an app. And that app collects data that lets the platform optimize pricing, staffing, and even what ammunition to stock. It's the same playbook we've seen in every industry we've covered, from dental to pet care. Luna: So if I'm a range owner listening to this and thinking about selling — what should I be doing to maximize my valuation? Lucas: Three things. One: get your membership data in order. Buyers want to see retention rates and churn. Two: invest in your safety program. Have documented training and incident logs. Three: clean up your real estate — make sure you have a long-term lease or own the property free and clear. Those three things can add a turn or two to your multiple. Luna: And if you're a buyer looking to enter this space? Lucas: Start with a cluster. Don't buy one range in Florida and one in Oregon. Buy three within a two-hour drive of each other so you can share staff and management. That's how you build the operational leverage that makes the model work. Luna: Good advice. Lucas, as always, thanks for the deep dive. Lucas: Thanks, Luna. If you're interested in the numbers behind any of the deals we mentioned, we'll post them on the show page. And for the rest — keep your eyes on the range.