Ice Skating Rinks
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 ice skating rinks. Below is a brief synopsis of the industry.
Description of Business
Establishments primarily engaged in operating ice skating rinks open to the general public.
General Industry Information
It is estimated that over 35 million Americans ice skate. Whether it is ice hockey, competitive figure skating or recreational skating, interest in the sport of ice skating is at an all time high. As a form of recreation and family entertainment, ice skating is becoming even more popular in spite of being held back by a shortage of ice skating facilities offering quality ice on a year long basis. The problems associated the shortage of adequate ice rinks is further compounded by the lack of such off-ice amenities and profit centers as retail pro-shops, food and beverage services, arcade games, and other ancillary amenities.
The number of skating rinks that are in place come in a number of different sizes. The average sized rink would be about 18,000 sq ft with a skating surface of roughly 9,500-11,500 sq ft (or approximately 70’ x 150’). These are only rough numbers.
Red Flags and Risks
The equipment breakout is critical and needs to be evaluated pertaining to batterboards, chillers, etc, and a depreciation schedule with equipment type, model number, and date of purchase. In many cases the efficiency of the chillers are not enough to keep the ice solid enough for long hours of skating and slush is the more common problem.
Look over the existing operations and financial projections, as well as construction costs, and any long term lease with a municipality or other lessor (landlord). Make sure that the percentage breakout of revenue for figure skating, hockey, public access, and skate rentals can be broken out over a multiple year period.
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