Low Growth / Stable Business Purchase

Hi All,

I'm curious how others think about purchasing a stable business that doesn't have many growth opportunities (or at least without geographic and/or facility expansion). As an example: a sporting facility that is at 95% capacity and has been for 20+ years. The sport isn't going anywhere and most likely the current level of profit isn't either. An operator can be put in place to run the day-to-day relatively easily. However, to grow you would need to move locations or open a 2nd location in a different area.

I'm assuming this would lead to a lower multiple and to think of it more in terms of an investment that could return 20+%?

Thanks!