Family Entertainment Businesses - Any Thoughts?

searcher profile

February 28, 2023

by a searcher in San Francisco, CA, USA

Has anyone looked into family entertainment businesses involving arcade games, bumper cars, rides etc? I'm in early stage discussions with one and I'm hoping to learn from the search fund community if anyone has prior knowledge of this space. I ideally prefer buying one with real estate such that the real estate is more than 51% of the deal ad thus qualify for SBA###-###-#### year loan.

This being said, this is a discretionary spending business which has its risks during recession times. The revenue is one time, and it is B2C beholden to online consumer reviews. I'm looking at how old the rides/attractions are, last pay increase for employees given tough hiring market, concentration of revenue among specific rides/attractions within the business. The IBISWorld report about this space is also helpful. Barring 3-4 times a year of inspections there seem to be no license requirements.

What else should I be looking at when assessing such a business? Am I missing any other major red flags here? I'm trying to create a rough list of what makes a good versus bad business in this space and I would love inputs from the community.

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commentor profile
Reply by a lender
from Eastern Illinois University in 900 E Diehl Rd, Naperville, IL 60563, USA
We have experience from a financing perspective if you want assistance evaluating the cash flow and options for financing such an acquisition. You can reach me here or at redacted Thank you and good luck.
commentor profile
Reply by a searcher
from Vanderbilt University in North Palm Beach, FL, USA
Yes, I'm active in the industry and happy to connect. Feel free to DM me
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