Advisory Services

GolFacts

GolFacts was designed for use by golf market researchers, appraisers, brokers, golf facility developers and other knowledgeable users. Filled with essential golf market data, the report can significantly reduce the time required to conduct various due diligence efforts. GolFacts presents an initial overview of the basic characteristics of a specified golf market area. This “first look” is intended to help our golf-knowledgeable clients identify relevant parameters about the market, especially those pertaining to the local golf facility supply and the population that is available to support it. The report also offers comparisons to the state and nation as a whole.

GolFacts provides a cost-effective foundation for conducting more advanced studies. For the GolFacts Report, you would provide a location (street address, crossroads, center of town, or zip code) from which we will generate one or two mileage or drive time rings. Because this product presents a snapshot of the existing and projected golf demand/supply equation, it is especially relevant to individuals or companies that are in the business of buying or selling golf courses.

A GolFacts Report includes:

• Proprietary NGF golf supply and demand indices for both golfers and rounds played
• Expansive population demographics, including current population estimates with five-year projections
• Estimates of the number of golfing households and rounds played at the Designated Market Area (DMA) level
• DMA rankings by golf participation rates, number of golfing households, predicted demand, and number of existing golf facilities by type

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GolFacts Plus

A GolFacts Plus Report includes all GolFacts Report components as well as:

• Key findings by an NGF Consultant
• Analysis of new course development activity over the past five- and 10-year periods
• Complete golf facility supply listings, including courses in planning and under construction
• Complete listing of golf ranges and golf specialty retail stores
• Detailed rounds and golfer density maps
• Proprietary golf development opportunity matrix

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Request a Free GolFacts Plus Report Sample

Additional golf decision support systems are available. Click here for more information or call (888) 275-4643

Initial Market Investigation - Golf Facility Development - An initial market investigation for golf facility development is a general overview of a proposed golf facility project. The proposed project is analyzed by NGF Consulting within the context of the golf market’s current and future supply and demand balance, and the projected positioning of the client’s product offering. An initial opinion is then offered as to the potential success of the project. These studies are used to provide the client a "quick look" at some of the general implications of a new golf facility development, without the expense of a full feasibility study that includes full documentation and financial projections. If a more in-depth analysis is required, then a feasibility study would be conducted to project the cash flows for the proposed project, thus providing the client with a warranted level of investment. If the initial market investigation warrants this further analysis, fees already incurred will be credited toward the price of the full feasibility study.

Market Feasibility Study - Golf Facility Development - Prior to beginning the development of a golf project, understanding the potential financial viability of the proposed facility will help ensure the greatest opportunity for success. Feasibility studies have become a critical component of new golf facility development, helping the client to fine-tune the proposed product offering and to identify potential opportunities and/or hurdles in the development process. Further, a credible and impartial feasibility study is essential when attempting to secure financing and/or attract potential partners. NGF Consulting has conducted hundreds of unbiased golf facility feasibility studies for both municipalities and private developers. We have extensive experience with a broad range of facility types, including stand-alone daily fee golf courses, residential golf communities, resort golf courses, private golf clubs, and commercial driving ranges. While the study parameters will be slightly different for each type of facility, the key elements addressed in these studies include:

• Identification of the target market(s) for the proposed project
• Assessment and documentation of the target market(s)
• Documentation of historical performance of competing facilities
• Trend analysis of market rounds played and price points
• Identification of potentially competitive facilities that are in planning or under construction
• Recommendation of the most appropriate operating and fee structure
• Estimation of the expense needed to construct and operate the facility
• Projected market share
• Projection of the cash flows from the new club’s various revenue centers
• Identification of the supportable level of capital investment that will allow the project to achieve its fiscal goals

Independent Feasibility Study Review - If a feasibility study is completed by another firm and a second opinion is desired, NGF Consulting will review the study, check the assumptions, and provide a statement as to the general credibility of the overall document. Most importantly, NGF Consulting will ensure that any data or information that has been attributed to the National Golf Foundation is accurate and has been used in the correct context.

Call NGF at (888) 275-4643 for assistance.

• The physical condition of the existing course
• Historical cash flows and operational structure
• Anticipated changes in the facility's operation
• Competition in the marketplace

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Golf Facility Appraisal - To prepare hard-dollar estimates of the value of individual golf facilities, NGF Consulting will utilize the services of a qualified-market certified MAI (Member, Appraisal Institute) and the data generated in our custom market and financial analyses to provide a separate value appraisal report. These appraisals will rely heavily on our existing databanks for additional comparable golf course cost information, as well as historical and estimated financial performance. NGF Consulting appraisals strongly weight the Income Approach to Value, which is based on projected income, green fees, and dues and ancillary sources such as golf cart rentals, pro shop income, and country club food and beverage income and guest fees. In addition to an Income Approach, we utilize a market approach comparing the club to other golf and country clubs that have recently sold on the open market. In our experience, the market relies most heavily upon income data. The deliverable for these appraisals will be a full narrative report including the stated estimate of value and all supporting tables, maps, photos and appendices.

Call NGF at (888) 275-4643 for assistance.

Operational Review For any existing golf facility, its operational structure and procedures can strongly impact the profitability of the individual profit centers and the entire operation. Golf courses must strive to provide the best possible product, while generating the maximum amount of revenues in a cost efficient manner. This is especially true in changing markets with increasing competition. NGF Consulting operational reviews may include, but are not limited to, analysis of the following components:

• Individual profit centers (Food & Beverage, Pro Shop, Driving Range, Carts)
• Clubhouse operations
• Maintenance practices
• Agronomic review
• Fee structures
• Membership/marketing plan
• Needed capital improvements
• Complete financial statement analysis
• Management contract review
• Review of lease/concession agreements
• General operational procedures
• Management alternatives and recommendations

An operational review provides the client with an in-depth analysis of the facility's strengths and weaknesses. This information can be utilized as a strategic overview to improve your facility.

GSP™ and GSP Review The NGF Golfer Survey Program helps facility operators survey golfers at the facility or via the internet and then view real time reporting of the results. Armed with a better knowledge of who your customers are and what they are thinking, you’ll be able to take immediate action to improve operations. The GSP questionnaire is designed to, among other things, identify your primary market competitors, evaluate the level of customer satisfaction with your facility, identify areas of strength and weakness in the operation and maintenance of the golf course, and record open-ended customer comments regarding any aspect of the subject facility. Learn more about GSP or view a sample GSP report.

Upon completion of the survey, many GSP clients find that they require a more in-depth analysis in order to convert survey results into actionable plans. This is where NGF Consulting’s GSP Review comes in. We will analyze and interpret survey results in the context of how they interact to produce common, or recurring, themes. The review will include recommended operational improvements, as well as ideas focused on fine-tuning the facility’s marketing plan. Our analysis will provide you with a framework for creating an action plan that will emphasize the strengths and correct the weaknesses revealed by the survey.

Golf Facility Business & Marketing Plan Development For any business venture, proper planning is integral to attracting investors and achieving financial goals. Toward this end, NGF Consulting will help prepare a complete marketing and/or business plan for any golf business venture. We also can review any existing business plan that has previously been prepared. These services will help you clearly communicate your business vision to any potential investor or lender, and will include a complete description of the subject business, the target market, its people, and a realistic estimate of financial performance.

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The increasing popularity of golf as a sport has engendered continued interest in the development of golf facilities by both private and public entities. Long-term investments such as golf facilities often require regulatory approvals at several levels. In some cases the decision to approve a golf facility is in part based on its ability to strengthen the local economy. In these cases, the ability to demonstrate the impact that the proposed golf facility can have on the local economy is paramount to the decision making process.

As a complement to our market demand and feasibility study services, an economic impact analysis provided by NGF Consulting allows the client to understand and clearly quantify the expected economic impact derived from the construction and long-term operation of the golf course development project.

In addition to measuring the economic impact expected from the development of an individual project, NGF Consulting has conducted economic analyses that are much broader in scope. For some clients we have quantified the total economic impact of the golf industry on the state's economy. These studies include a detailed analysis of the following measures of direct, indirect, and induced economic impacts:

• Construction – wages, benefits, materials, supplies
• Employment
• Output – gross sales revenues
• Wages – payroll and benefits to employees
• Value-added – compensation of employees, plus business taxes and property income
• State and Local Taxes – on income, sales, and property
• Multiplier Effect – chain reaction that ensues when initial contributions for goods, services, and wages multiply as expenditures and personal income pass through the economy
• Golf’s Impact on Real Estate Values
• Visitor Impacts – golf-related tourism

For assistance with any of NGF Consulting's advisory services please contact us at (888) 275-4643.