Mini Golf - Help needed re. valuation / financial profile

searcher profile

July 31, 2022

by a searcher from Vanderbilt University in North Palm Beach, FL, USA

Does anyone have experience in valuing, acquiring or operating miniature golf courses?

I'm in discussions with an owner of a outdoor mini golf center in a population-dense, high-growth area and am having trouble modeling & valuing the business. I would really appreciate any insights that could be shared as to:
1) top-line potential and operating expenses of a mini golf course, and
2) valuing a location-based business in which the real estate is a high proportion of the overall enterprise value.

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commentor profile
Reply by a searcher
from Montana State University in Missoula, MT, USA
Hey Brett, as a buyer there are so many different ways to do it. Although I have never worked in the mini golf specific industry I usually start all my evaluations with looking at their P&Ls to understand costs. Then simply look at what is the highest price you could pay for it and still cash flow with debt service, expenses and time you would have into it Then look at what the best price you would want to get it for. Then work somewhere in the middle. A big thing I would look at is to see if they currently have a data base or way to reach out to past customers, and if so how big is it. That way I could depend more on email or text marketing. There are many other more complex ways to evaluate a business, but I like to keep it as simple as possible. Let me know if you'd like to chat more.
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Reply by a professional
from Oregon State University in Kuna, ID, USA
Hi Brett. DealStats will have some transaction data on golf courses, mini golf courses, golf centers etc. You can find some aggregated data on Searchfunder by visiting the BVR Valuations link at the top of the platform.

https://www.searchfunder.com/bvr/sector/291.

If you want to see the underlying data, I'd be happy to get you in touch with an account manager for your area. Let me know.
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