Valuing, Buying & Selling Bowling Alleys
Whether you are a business person, CFO, banker, investor, attorney or newcomer to the bowling business this book will increase your valuation and transactional skills. It is like having a bowling alley consulting group on call 24 hours a day at a fraction of the cost.
This edition will be a resource of tremendous value. The book penetrates the bowling industry’s mystique and empowers you by revealing, on layman’s term, the techniques for valuing these businesses and their assets. No other book on the market covers all of these issues in one source. It is packed with spreadsheets, examples, forms, and checklists which really work. The knowledge you will gain from this book is powerful. The book explains important terms and concepts clearly.
You will also discover:
> Why a Lease is the Most Important Deal Breaker for Selling a Business
> Industry Leaders
> What to Remind your Attorney About When Drafting Asset or Stock sale Agreement
> Powerful Tax Ramifications for a Stock Versus an Asset Sale
> The Nuances of a Bowling Alley Operator’s Revenue Streams and Expenses
> How to Analyze an Operator’s Financial Statement
> Bowling Alley Valuation Rules of Thumb
> Analyzing Cash Flows for Operators
> How to Crank Out Flows for Operators
> Valuing the Real Estate of Bowling Alleys and the Nuances Which Can Drastically Affect Value
> What Changes are Likely to Happen in the Next Five to Eight Years
> Business Acquisition Rates of Return
> Real Estate Cap Rates for Various Bowling Alley Operations
> How the Equipment can Make or Break an Operation
> Equipment Value in Use Versus Orderly Liquidation Values
> Buyer Due Diligence Methods and Tricks Sellers Use to Disguise Cash Flows
> How to Screen Buyers and Sellers
Chapter 1 is an Overview of the Bowling Center Industry and provides a comprehensive overview of the bowling center industry and the rapid changes which are taking place in this industry. This chapter will focus on the History, Organization and Structure, Employees and Payroll, Industry Leaders, Trends, Equipment Needed, Competition and Risks, and an Industry Outlook.
Chapter 2 is on Analyzing a Bowling Center s Financial Statements & Operations. The reader is provided a primer on basic financial statement ratio analysis and an overview of adjustments for extraordinary and nonrecurring items. Although not as critical for larger businesses, these adjustments are crucial to understanding when valuing closely held businesses.
Chapter 3 is a Summary of Business Valuation Approaches and presents a summary of the various approaches to valuing a business. More importantly, it presents an overview of which valuation technique is most useful when comparing the values during a reconciliation. Chapter 4 is on Business Valuation. One of the most basic approaches to valuing a business is looking at the balance sheet. It is difficult to accurately adjust the balance sheet assets and liabilities to market values. This section focuses on the adjustments and nuances of making each adjustment.
Chapter 4 presents one of the most typically used methods for establishing the value of a bowling center business. The market approach is used frequently because it is the easiest technique to understand. Most people understand multiples from the stock market as well as rules of thumb. This chapter presents the advantages and drawbacks, and the dangers of using rules of thumb. With respect to the income approach to valuing a business, this chapter is one of the most important chapters in the book. All decisions are based upon cash flow, the most critical element to a bowling center s business value.
Chapter 5 is on Real Estate Valuation. Real estate may sometimes constitute the largest component within the fixed asset category on a balance sheet. This chapter gives a critical primer in what to look for accounting for the real estate asset or lease, as part of a bowling center business acquisition or valuation. This chapter addresses the different types of bowling centers, the leases, and typical methods of valuing the asset.
Chapter 6 is on Equipment Valuation. These assets are different from real estate and intangibles because their values can differ depending upon the specific circumstances under which they are being sold, e.g., liquidation value, going concern value. Sometimes the installation costs can be higher than the liquidation value. After understanding this chapter, you will be able to notice how radically a balance sheet can change, based upon the definition of value, as well as being able to calculate the differences in values.
Chapter 7 is on Selling and Buying a Business. This chapter deals with purchase offers for the business, brokers, and the motivations of both buyers and sellers. Most sellers have no knowledge of the relationship between cash flow and value. On the other hand, buyers pay for the history of the company and not the potential or proforma income.
Chapter 8 is on Buyer/Seller Due Diligence. Here you will learn the deceptions which sellers use to increase the earnings of a business. Due diligence by a buyer is time well spent. The chapter also provides a great overview of a seller s due diligence on a buyer, as well as a handy Legal Investigation Checklist.
Chapter 9 is on Terms and Financing. Terms of an agreement and financing resources can make or break a deal for most closely held businesses. Since most small businesses sell with seller financing, the terms and financing are intricately related.
Chapter 10 is on Selling a Business: Asset vs. Stock Sales.
Chapter 11 is on Selling a Business and Finishing Steps.
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