What should I look at in a driving range’s range ball inventory and replacement cycle?

Range balls are the stock of this business, so treat them like inventory. Ask how the seller counts them, where they are kept, and whether the number on the books matches what is on site. Balls sitting in dispenser hoppers, picker cages and storage bins all need to be included.

Then judge quality. Pick samples from different bays and look for scuffing, cracks, fading and balls that feel dead when hit. Ask whether the range uses a single type or a mix of old and new, and whether customers have complained about it. Next, ask about losses. Balls disappear to theft, to the far end of the field and to damage. Ask how the seller tracks that, and what is spent in a typical year to top up. Look at supplier invoices to see how often they order and whether the supplier is dependable. If the replacement cycle has been stretched to save money, you may inherit a bill that the current books do not show. Ask your accountant how inventory and replacement spending should be treated when you read the financial statements. Ask also whether the balls are branded or marked so that stolen ones can be spotted, and how many go missing after a busy weekend or a tournament.

Key takeaways

• Count the balls and compare with the books.
• Sample wear across several bays, not just the best ones.
• Check whether replacement has been delayed to flatter the profits.