We have years of 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 country club businesses. We have valued these businesses and facilities for private institutions as well as the Internal Revenue Service. Below is a brief synopsis of the industry.
Description of Business
Establishments, usually in a suburban district, with a clubhouse and grounds, offering various social activities and generally having facilities for tennis, golf, swimming, etc.
General Industry Information
An estimated 25,000 membership sports and recreation clubs were in operation in 2002, generating revenues of more than $22 billion. Employment in this sector declined by 4 percent from more than 400,000 employees in 2000 to 385,200 in 2002. Personal consumption expenditures, however, rose more than 15 percent from $75.8 billion in 2000 to $89.2 billion in 2003.
American country clubs were born in the late 1880s–a creation of the wealthy upper class as an exclusive social setting in which to enjoy various athletic and recreational endeavors. The clubs flourished until the late 1920s, when the Depression forced many of them to close. A renaissance took place in the late 1940s and 1950s, spawned by post-war affluence and the increased interest in golf (a sport that has enjoyed a tremendous amount of growth across the nation for the past several decades). As a direct result of this heightened popularity, many country clubs were built during this period. The trend of the mid-1990s continued into the 2000s, as private country clubs have become a major pastime for many Americans, with more than 12,000 such facilities in operation.
Red Flags and Risks
Demand is driven by demographics and population growth. The profitability of individual companies depends on efficient operations and good marketing, because many costs are fixed. Large companies can have advantages in management experience. Small companies can compete successfully by operating in favorable locations or through superior marketing.
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