Due Diligence Consulting for Existing Golf Facilities
NGF Consulting provides complete operational reviews for existing golf facilities to assist in identifying their most appropriate business/operating model, and to assist in the preparation of a workable business plan that will maximize profits and efficiency. NGF Consulting operational reviews may include, but are not limited to, analysis of the following:
- Individual profit centers (Food & Beverage, Pro Shop, Driving Range, Carts)
- Clubhouse operations
- Maintenance practices
- Agronomic review
- Fee structures
- Membership/marketing plan
- Capital improvement needs
- Financial statements
- Management contracts
- Lease/concession agreements
- General operational procedures
- Management structures and alternatives
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.
Customer Satisfaction Surveys (GolfSAT)
National Golf Foundation offers GolfSAT, the industry's most widely adopted customer satisfaction survey for golf courses. Over the past 10 years the NGF's surveys have been used to gather customer feedback from over 565,000 golfers at over 840 courses. GolfSAT is a complete golf course customer survey system for public and resort courses and is only $395. GolfSAT is a web-based survey that is simple and fast - it takes customers less than five minutes to complete. Reports are automatically generated and easy to understand. Most importantly, GolfSAT provides you with unique performance benchmarks, so you can see just how your customer satisfaction stacks up against similarly priced courses. No other customer survey can offer you this. To learn more about GolfSAT, visit www.NGFGOLFSAT.com.
Golf Facility Business & Marketing Plan Development - Proper planning is integral to attracting investors and achieving financial goals for any business. NGF Consulting will help prepare a complete marketing and/or business plan for your golf-related venture. We will also review existing plans to determine whether they are appropriate for your particular business. Business and marketing plans prepared by NGF Consulting will help you clearly communicate your business vision to any potential investor or lender, and will include a complete description of the subject business, identification of target markets, marketing strategies, capital improvement recommendations, and realistic estimates of future financial performance.
Outsource Planning and Evaluation Assistance
With today's difficult golf economy, NGF Consulting is increasingly called upon to assist clients with the preparation and issuance of a Request for Qualifications (RFQ) and/or Request for Proposals (RFP) related to outsourcing golf course management, operations, and/or maintenance. NGF Consulting always tailors its scope of work to the client's needs, but services could include conducting an inspection of the golf course to establish its current physical condition, and reviewing the present operating/maintenance structure, financial data, and market data to provide a background for potential bidders to understand the current business environment. Services related to Outsource Planning and Evaluation Assistance could include:
- Preparation of a draft RFQ and/or RFP
- Providing samples and templates of RFPs/RFQs
- Identification of appropriate language for contract terms related to quality standards, compliance, performance standards, etc.
- Identification of competent bidders and assistance in distribution of the RFP/RFQ
- Support in making appropriate comparisons between responses
Contract Compliance Assistance
The NGF team may also be retained on a continuing basis to serve as an independent third-party oversight mechanism with contract compliance inspections conducted at regular intervals
Call NGF at (888) 275-4643 for assistance.
Due Diligence Consulting for Proposed Golf Facilities
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 facility's net cash flows
- Identification of the project's supportable level of capital investment
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 also 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.
Services in Support of Golf Facility Transactions
Due Diligence Review - Acquisition/Refinancing
In today's golf market, the acquisition of existing facilities requires careful planning and knowledge of both the property under consideration and its market area. NGF Consulting has worked extensively with various lending sources in their due diligence research of potential funding opportunities, for both acquisitions and refinancing. The present and future revenue generation and debt retirement potential of a golf facility can be determined only with a thorough understanding of the due diligence elements. NGF Consulting Acquisition/Refinancing studies typically focus on general feasibility study issues such as golf market supply/demand analysis, in addition to such items as:
- The physical condition of the existing course
- Historical cash flows and operational structure
- Anticipated changes in the facility's operation
- Competition in the marketplace
Call NGF at (888) 275-4643 for assistance.
Golf Facility Appraisal
NGF Consulting can provide two levels of valuation services:
- (1) A "Consultant's Estimate of Value" - Provides the NGF opinion of value for a particular golf property based on the physical condition of the subject facility, our knowledge of actual transactions of comparable golf facilities in the market, and the net cash flow history and potential.
- (2) A certified appraisal of value. NGF Consulting will utilize the services of a qualified MAI (Member, Appraisal Institute) and the data generated in our custom market and financial analyses to provide a separate certified appraisal of value report. 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.
Economic Impact Studies
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 a golf course development project. 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.
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
- 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
Market Data Services
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 market data such as estimated number of golfing households, average rounds demanded per household, actual number of golf facilities and a ratio of golf facilities to households available to support them. 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.
The GolFacts report can be purchased with up to three markets per location, based on mileage rings, drive time areas, county, DMA, MSA, or state.
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
- Rankings of subject DMA on the measures of golf participation rates, number of golfing households, predicted demand, and number of existing golf facilities by type
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 matrix
Additional golf decision support systems are available, call NGF at 888.643.2500.
Expert Witness Services
NGF Consulting's Richard Singer is frequently called upon as an "expert witness" to consult in legal matters regarding golf facilities. According to experts.com, where he is a registered member, "An expert is an authority in any discipline that requires specialized knowledge and/or experience. When engaged, they may evaluate the facts, render a supportable opinion, recommend a course of action, or implement a plan or a strategy. If hired as an expert witness, their opinion is often rendered as sworn testimony under oath." Expertise is related to establishing economic damages to a golf course caused by another's actions.
Borrower & Lender Financial Services
NGF Consulting provides financial analysis and planning to both borrowers and lenders. Services include:
- Property Asset management/Lender REO Advisory Services
- Loan Portfolio Analysis
- Disposition Strategy
For more information on these and other golf industry financial services, please contact Richard Singer at (561) 354-1642 or Ed Getherall at (561) 354-1650.
Last Updated: 8/16/2010 12:46:50 PM / Generated at: 5/19/2013 7:18:19 PM