Listing ID: 67555
Two well-established and profitable golf courses in Virginia. 2020 was a great year for both courses, with continued growth expected in 2021. One course is listed for $3MM and the other for $2MM or buy both for $5MM.
Total 325 Acres of total land included.
Future land development opportunity.
Owned both courses for over 20 years.
Several other golf courses in the area but these are close to urban area.
Record year in 2020.
- Asking Price: $5,000,000
- Cash Flow: $900,000
- Gross Revenue: $2,159,000
- EBITDA: N/A
- FF&E: $100,000
- Inventory: $5,000
- Inventory Included: Yes
- Established: N/A
The transaction does include inventory valued at $5,000, which is included in the listing price.
Why is the Current Owner Selling The Business?
There are all kinds of reasons why people resolve to sell operating businesses. Nevertheless, the real factor vs the one they say to you might be 2 completely different things. As an example, they may say "I have too many various commitments" or "I am retiring". For lots of sellers, these reasons stand. But also, for some, these may simply be excuses to attempt to conceal the reality of changing demographics, increased competition, recent reduction in profits, or a range of other factors. This is why it is really crucial that you not rely entirely on a seller's word, however instead, utilize the seller's answer together with your general due diligence. This will repaint a much more practical picture of the business's existing situation.
Existing Debts and Future Obligations
If the existing business is in debt, which lots of businesses are, then you will certainly need to consider this when valuating/preparing your offer. Many businesses finance loans with the purpose of covering points such as stock, payroll, accounts payable, etc. Remember that sometimes this can imply that earnings margins are too tight. Many organisations come under a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may additionally be future commitments to think about. There might be an outstanding lease on equipment or the building where the business resides. The business may have existing agreements with vendors that must be met or might lead to penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
How do companies in the location draw in brand-new consumers? Often times, operating businesses have repeat clients, which develop the core of their day-to-day revenues. Specific factors such as brand-new competitors sprouting up around the area, roadway building, as well as staff turnover can influence repeat clients as well as adversely affect future incomes. One vital point to think about is the area of the business. Is it in an extremely trafficked shopping center, or is it hidden from the highway? Obviously, the more people that see the business often, the greater the opportunity to develop a returning client base. A last thought is the basic location demographics. Is the business placed in a largely inhabited city, or is it situated on the outskirts of town? Exactly how might the neighborhood typical household income impact future revenue potential?