What should I check before buying a family entertainment centre?
Before buying a family entertainment centre, check income by attraction, how much comes from parties and group bookings, how seasonal the outdoor and indoor sides are, the shared lease and land, how staff cover several attractions, and the safety and maintenance records. Have your lawyer and accountant review what you find.
A combined venue is several small businesses under one roof, and they rarely perform alike. One attraction can carry the rest, or hide a weakness in another. Your checks should therefore split the venue apart before you put it back together. Ask for records in a form that lets you see each part on its own.
Income by attraction and by season
Ask for sales broken out by attraction, party room, food and games, month by month for several years. Outdoor attractions often depend on weather and the school calendar, while indoor ones fill the gaps. See which side carries the slow months, and whether any attraction only breaks even because the others subsidize it. An arcade on its own has a simpler picture.
Parties, groups and repeat visits
Birthday parties, school trips and corporate groups are often booked ahead, and the booking calendar shows how steady demand is. Ask how bookings are taken, who holds the customer list, and whether a few large groups account for much of the business. Repeat visitors matter too, so ask how the owner keeps in touch with them.
Land, lease, people and safety records
Read the lease and any land arrangement for what the attractions share, how long you can stay and whether the landlord must consent to a sale. Ask how staff move between attractions and who holds the key skills. Request incident logs, maintenance files and insurance history, and ask your lawyer what safety rules apply to your venue.
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Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 02Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
- 03Business Development Bank of CanadaGovernment13 terms you need to understand before signing your commercial real estate lease
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