We have experience in this industry for the valuation of the business, equipment and real estate. Let us help you with our valuation consultation in all areas of the valuation of bowling alley businesses. Below is a brief synopsis of the industry.
Description of Business
Establishments known to the public as bowling centers. Such establishments frequently sell meals and refreshments.
General Industry Information
There were approximately 4,900 bowling establishments in the United States, as of the recent census. Combined, they account for over $3 Billion in annual revenues. Within the last five years, the bowling business has undergone some consolidation, resulting in increased revenues for the remaining operations. The average bowling center generates approximately $612,000 in annual revenues.
Much of the income generated from this industry comes from regular (repeat) bowlers. Aficionados of this activity often enroll in bowling leagues, which have regular seasons and are very dependable clients. The count of league players should be included during due diligence.
As is the case for most recreational businesses, advertising and marketing are very important. Efforts to revamp the bowling business have resulted in innovations, particularly the successful cosmic bowling. Often times, additional equipment expense is incurred to include these options for customers. Many have found success marketing themselves as family-oriented recreation centers.
Generally, buyers purchasing a bowling center will purchase the land, building and equipment combined with the business. Value drivers for the sale of these businesses are often based on the value of real estate and other equipment (automatic pin setters, audio/visual scoreboards, etc) involved in the sale.
Red Flags and Risks
Check for appropriate signage, and expenses that will be incurred to achieve a modern image. Technological improvements are often necessary and the expense for this should be considered. If any foodservice or concession stand is involved in a business transfer, all licenses should be checked for validity. Liquor licenses are particularly sensitive, so reasonable buyers should look into these items. Lastly, financials should be reflective of a full year of revenues. This business can be cyclical, peaking during the height of bowling league activity
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