I need some help from the golf business experts..........

[jbrunk]

I need some advice from the resident golf biz experts here about buying an upscale driving range and practice area.

This place is sits on about 20 acres and is in an area that is being developed. It has ~ 40 covered stalls with mats and 3 times that amount of usable grass. The short game area is a gem with 6 practice greens to hit to and 2 putting greens surrounded by 3-4 bunkers. The place also has lights.

I need some pointers on where to go to look for comparable information regarding revenues/expenses, margins etc.

Apparently the economy has zapped the current owners into an unfortunate situation and they need to sell it.


Any information is appreciated.

 

[Matt Bryda]

How many rooftops in the area?
How many other places are there for people to practice in your area?
Is it a growing area?

 

[curtisj76]

"Apparently the economy has zapped the current owners into an unfortunate situation and they need to sell it" = Red Flag and no surprise.

I would check the cities Comprehensive Annual Financial Report (CAFR), it should hopefully give you a good idea how the local golf biz is in the area. You can look for trends such as number of rounds played in the city. The number of rounds being played has dropped big time over the last several years. How's the local economy? What kind of businesses? Location of range? Lots of things to think about...

 

[Billy McKinney]

National Golf Foundation

 

[Kevin Shields]

If you are going to be there to monitor every penny that goes through there and dont have to pay a manager then id consider it.

 

[TROYNYGOLFER]

I need some advice from the resident golf biz experts here about buying an upscale driving range and practice area.

This place is sits on about 20 acres and is in an area that is being developed. It has ~ 40 covered stalls with mats and 3 times that amount of usable grass. The short game area is a gem with 6 practice greens to hit to and 2 putting greens surrounded by 3-4 bunkers. The place also has lights.

I need some pointers on where to go to look for comparable information regarding revenues/expenses, margins etc.

Apparently the economy has zapped the current owners into an unfortunate situation and they need to sell it.


Any information is appreciated.

The 2000 and 2010 Census numbers will give you insights into which demographics (if any) are growing in the area and make sure they are golf-friendly. Find someone in the local government who can tell you what the impact of your purchase would be on the property valuation. If it was a sole proprietorship, find out if there was a vet's exemption on the valuation. Check the SCORE website (Service Corps of Retired Execs) to see if there is anyone in your geographical area that can assist you in analyzing their books. Sellers are tacitly encouraged to fudge the last couple years of expenses to make the operation look more attractive.

Visit the competition. I have been surprised at how willing owners of such businesses are to tell customers all about their operations. Mention you heard "Golf Range X is for sale and why don't you buy it?"