Golf course valuation trends

Compensation Surveys WageWatch, Inc. This trend has been correcting over the past decade due to investor equity positions being severely
eroded. Digital flipbook editions are available online. High staff turnover is one of the major problems in golf course management. An appraiser
must analyze the effect on the remainder of the golf course. And if the sellers start to accept the lower bids, the flow of sales could speed up
considerably. Expensive reconfiguration of the remaining course layout is not always an option. Calculated as divided by the Receivables Turnover.
Taking of land by eminent domain can provide a unique valuation challenge when it involves a partial taking of a golf course. Accounting statistics
are calculated from the industry-average for income statements and balance sheets. But things may not always be so murky for course valuation.
Here are a few random statistics, facts and, perhaps, a few surprises to think about. We have over a thousand market research reports. The
Outlook For Private Clubs http: Estimating value by existing sales comparison is tricky since no two courses are exactly alike. Comprehensive
research reports provide in-depth industry analysis and five-year growth forecasts, with special focus on the underlying structure and external
forces and relationships that affect industries and their performance. Has the market grown or declined? Current and prior reports are available
free online. Company valuation can be measured based on the firm's own performance, as well as in comparison against its industry competitors.
Income and expense detail in dollars and percentages Balance sheets in dollars and percentages Cash flow analysis Liquidity and working capital
ratios Profitability and return on investment ratios Asset turnover and efficiency ratios Capital structure and debt service ratios. Income and
expense detail in dollars and percentages Balance sheets in dollars and percentages Cash flow analysis Liquidity and working capital ratios
Profitability and return on investment ratios Asset turnover and efficiency ratios Capital structure and debt service ratios. Financial Information and
Financial Ratios. Income and expense detail in dollars and percentages Balance sheets in dollars and percentages Cash flow analysis Liquidity and
working capital ratios Profitability and return on investment ratios Asset turnover and efficiency ratios Capital structure and debt service ratios
CMAA Finance and Operations Report http: First Research profiles provide analysis, statistics, and forecasts for a wide range of industries, with
content sections including industry overview, recent developments, issues and challenges, business trends and opportunities, leading companies,
executive insights, financial benchmarking information, and 5-year revenue growth forecast. Annual survey provides information on investment and
financing criteria for golf properties based on input from investors, brokers, lenders, and other survey participants, with measures covered in the
survey including overall capitalization rate, terminal capitalization rate, net income multiplier, gross income multiplier, discount rate, income and
expense growth rates, and broker sales commission. But Main says most buyers who are closing deals are cash flow based. Private equity buyers,
including Concert Golf Partners and Fore Golf Partners , have said they will buy courses at one times gross revenue. Order at top of page Total
Firms. Federal law dictates that banks must order the appraisal - not the borrower. Still, many sellers seem willing to wait. That rate is higher than
most experts feel courses are worth and 60 percent higher than what the big buyers are willing to spend. A cost approach is usually not applicable
for existing golf properties. Download both PDF and Excel. Shareholders' Equity is defined as the company's total assets minus total liabilities.
Courses selling for 1. Nominations open for golf dining awards. Golf courses can be public, private, semi-private, or part of a country club. Show
company earnings relative to revenues. Free online service provides salary, bonus, and hourly wage rate data for selected job positions in this
sector, with job positions for which salary or hourly wage data is provided including general manager, head course superintendant, assistant course
superintendant, head golf professional, assistant golf professional, food and beverage manager, groundskeeper, greenskeeper, and irrigation
technician. PayScale Golf Course https: The hot demo today is About Terms Privacy Contact. Key statistics Market size and characteristics
Current performance Competitive landscape Major companies Key risk and success factors Five-year growth forecast. Operations Highest rated
Golf Inc. Unlike fast food restaurants that are sold in a national market, golf course values tend to be linked to their locality. A golf course is
actually a large business enterprise that groups revenue-producing departments under one identity. Generally our reports for golf course properties
include two methods for determination of the course value: Comprehensive research reports provide in-depth industry analysis and five-year
growth forecasts, with special focus on the underlying structure and external forces and relationships that affect industries and their performance.

Courses selling for 1.6x gross revenue

Taking of land by eminent domain can provide a unique valuation challenge when it involves a partial taking of a golf course. Monthly trade journal
features news and information for course owners and managers with a focus on a specific type of property in each issue e. Financial benchmarking
report provides information on revenue, expenses, capital expenditures, and other measures for hole-course facilities, with financial data broken
out by facility type e. Calculated as divided by the Receivables Turnover Inventory Turnover A low turnover rate may point to overstocking,
obsolescence, or deficiencies in the product line or marketing effort. Beside a broker, any special place to advertise a golf course fo sale? Losing a
portion of a golf hole s can severely impact a golf operation. Comprehensive valuation guide explains how to analyze and value golf properties,
with topics covered in this publication including types of courses, market analysis, course styles and layouts, other design considerations,
ownership, management, and governance structures, approaches commonly used in valuing properties, unique valuation considerations, and
common issues encountered by appraisers. Related Reports Can't find what you're looking for? Read Subscribe Past Issues. Has the market
grown or declined? Shareholders' Equity is defined as the company's total assets minus total liabilities. Are long term forecasts positive or negative?
How far in advance do golfers plan their golf vacation? A complete list of job positions included in the survey is available online, with online survey
demo available upon request. Calculated as divided by the Receivables Turnover. That means that most courses getting sold are making a profit
driving up the gross income multiplier. But things may not always be so murky for course valuation. Quick Ratio Acid Test Calculates liquid
assets relative to liabilities, excluding inventories. Annual report provides information on current business conditions and concerns and expectations
for the year ahead based on a survey of golf course superintendants, with topics addressed in the report including operating budget, capital budget,
 financial condition, profitability, maintenance crew staffing, personnel recruiting issues, and industry concerns. Receivables Turnover Ratio If this
number is low in your business when compared to the industry average in the research report, it may mean your payment terms are too lenient or
that you are not doing a good enough job on collections. For guides to other industries, see our index of over industries. Key statistics Market size
and characteristics Current performance Competitive landscape Major companies Key risk and success factors Five-year growth forecast. This
approach requires an appropriate projection period, a forecast of gross revenues and annual operating expenses to arrive at a stable net operating
income. For example, a course may need to replace an obsolete irrigation system. Therefore, a sales comparison is often expressed as a value
range rather than a single value. It is important to recognize that the business measurement of a golf course may not be subject to assessment and
taxation. The purpose of the appraisal has a direct bearing on the approach. Golf and Country Clubs SIC NAICS The following guide to industry
information, research, and analysis provides sources for industry trends and statistics, financial ratios, salary surveys, and more. Furthermore, golf
course sales are infrequent providing few transactions by which the appraiser can make a comparison. Key statistics Market size and
characteristics Current performance Competitive landscape Major companies Key risk and success factors Five-year growth forecast. Hirsh is
hopeful there will be several deals in that will give appraisers, brokers and buyers a much better understanding of the value of golf courses. High
staff turnover is one of the major problems in golf course management. NCA Publications available from this trade association include: Members
usually make emotional buys, sometimes paying far more than the private equity firm would spend. Compensation Surveys WageWatch, Inc. Five-
year financial statement analysis includes income statements, balance sheets, and key financial ratios, with data available by sales size range on a
national, state, and metro area level. Hilda Allen , who runs one of the most active brokerages in the U. Elements that we weigh during a golf
course or country club appraisal include:

Golf Courses & Country Clubs Industry Statistics Market Research Report - Market Size Trends
Five-year financial statement analysis includes income statements, balance sheets, and key financial ratios, with data available by sales size range on
a national, state, and metro area level. Better Data, Better Decisions. Average Collection Period Based on the Receivables Turnover, this
estimates the collection period in days. Time is the new currency of today. It is important to recognize that the business measurement of a golf
course may not be subject to assessment and taxation. For guides to other industries, see our index of over industries. A Modern Approach Larry
A. Characteristics influencing golf course property value include location, overall site configuration, golf course valuation trends density,
topography, scenic appeal, course features, and commercial amenities such as access to major highways and expressways. National summary
report which provides averages for daily fee and private hole courses is available online with registration. The average Capitalization rate is 11
percent, with a range from 6 to This trend has been correcting over the past golf course valuation trends due to investor equity positions being
severely eroded. About Terms Privacy Contact. But things may not always be so murky for course valuation. We have operated for over 20 years
in the appraisal industry and many of our appraisers have over 40 years of experience. Mon - Fri 9: Has the market grown or declined? Not that
many years ago it was one to five months. Elements that we weigh during a golf course or country club appraisal include: Utilizing an appraiser with
golf course experience is essential to determining overall financial health. What is the market growth rate? Financial Information and Financial
Ratios. Income and expense detail in dollars and percentages Balance sheets in dollars and percentages Cash flow analysis Liquidity and working
capital ratios Profitability and return on investment ratios Asset turnover and efficiency ratios Capital structure and debt service ratios NGF
Operating and Financial Performance Profiles http: How many companies are in the industry? Measure how quickly products and services golf
course valuation trends, and effectively collections policies are implemented. Golf course construction over the decade has been primarily high-
end Private equity buyers, including Concert Golf Partners and Fore Golf Partnershave said they will buy courses at one times gross revenue.
These establishments often provide food and beverage services, equipment rental services and golf instruction. Compensation and Salary Surveys.
Industry Analysis, Statistics, Trends, and Forecasts. NGF Publications available from this trade association include: Accordingly, the income and
sales comparison approaches can provide an allowance. There have to be consequences. Excellence in Worldwide appraisal services is the
hallmark of Global Valuation. Key statistics Market size and characteristics Current performance Competitive landscape Major companies Golf
course valuation trends risk and success factors Five-year growth forecast. Summary data from the survey can be viewed free online. Income
and expense detail in dollars and percentages Balance sheets golf course valuation trends dollars and percentages Cash flow analysis Liquidity
and working capital ratios Profitability and return on investment ratios Asset turnover and efficiency ratios Golf course valuation trends structure
and debt service ratios.