Your First 10 Steps in Buying a Golf Course
- Find an experienced golf course broker to discuss your needs and wants.
- The costs to purchase a golf course: have a set goal of what you do not want to exceed, with the criteria you are looking for in a golf course acquisition.
- Obtain a preliminary pre-approval letter from your lending source.
- Decide a location / market for your purchase. At this time the broker will start identifying properties for you.
- Know the market of where you are buying / look at the existing clientele of your possible golf course purchase.
- Examine all infrastructure & look at all deferred maintenance / equipment. (See what kind of costs one would incur.)
- Have broker obtain 3-4 years of financials & (SDE) Sellers Discretionary Earnings (At NG&M Properties we have all golf courses underwritten for our buyers.)
- Look for upsides to grow business, short term & long term.
- Does the business have staff in place & does the business have management software? (If so, is it current / up to date or is it obsolete?)
- Do a complete (DD) Due Diligence period with your broker. Trust your broker let them negotiate the best deal for you.
Your First 10 Steps in Selling a Golf Course
- Have an exit strategy.
- Consult with financial advisor on possible proceeds of sale.
- Consult / interview with an experienced golf course broker. Have broker supply you with references, sign a confidentiality agreement with the broker.
- Know why you are selling / share with the broker reasons why good & bad.
- Do a walk-through of property and business, share all with broker. Leases / equipment lists / financials / employee list / POS systems / deferred maintenance / insurance / claims / lawsuits etc.
- Get a broker’s opinion of value.
- Decide if this is a confidential listing or not.
- Decide if you are letting employees / clients & vendors know of the sale?
- Decide how you are going to assist in the acquisition to ensure support for new ownership.
- Let broker do their job, work with broker during the entire acquisition.
Nobody knows the property & business better than the sellers.