I get this question all the time: why do some centers sell quickly, while others sit on the market for months, or even years?
The answer usually isn’t complicated; it isn’t always what people want to hear. The biggest factor, almost every time, is pricing.
I know everybody wants to get what they want to get. I understand that. Most of the people I work with have put 20 or 30 years into their business. This isn’t just a building to them, it’s their life’s work. Their goal is to sell, go sit on a beach somewhere, and not have to worry about money.
But that’s not always reality anymore.
Years ago, there was a general rule of thumb in our industry that a center might sell for one-and-a-half to two times gross revenue. Today, that’s not really how buyers, or more importantly, banks, look at it. Now, they’re focused on EBITDA, typically somewhere in the range of five to seven times.
Definition: EBITDA measures earnings before the impact of financing costs, taxes, and certain non-cash accounting charges
That’s a big shift, and it changes how deals come together.
You’re Not Selling Real Estate—You’re Selling Cash Flow
One of the biggest disconnects I see is how owners think about the value of their property.
I often hear, “My business is worth this, and my land and building are worth that,” and then they add those numbers together. The problem is that buyers and lenders don’t look at it that way.
I had a banker tell me once, “I don’t care if it’s sitting on top of Fort Knox. I’m loaning you money to run it as a bowling center.” That stuck with me, because it’s exactly right.
At the end of the day, the business has to generate enough income to support the loan. The real estate can be a safety net, but it’s not what drives the deal. So, when owners build that extra value into their asking price, it usually prices them right out of the market.
And that’s why you see so many centers just sitting there.
They’re overpriced.
The Financials Have to Tell a Clear Story
The second biggest issue is preparation, or lack of it. I would say at least 50% of the people who come to me are not actually ready to sell. They have a number in mind, but they don’t have their information organized in a way that supports that number.
You need three years of profit and loss statements. You need tax returns. You need a balance sheet. You need to understand your add-backs: things like depreciation, amortization, and owner expenses that won’t carry over to a new buyer.
A lot of times, someone will hand me a tax return and say, “Here you go.” The problem is, a tax return has a number on it, but it doesn’t tell a story. There’s no breakdown of where the revenue is coming from or how the business is really operating.
If I can’t clearly explain your business to a buyer, it makes it harder for them to get comfortable, and if they’re not comfortable, they’re not moving forward.
Buyers See Everything—Not Just the Numbers
Even if the financials are solid, buyers are still going to evaluate the condition of the center. And I’ll be honest, this is where a lot of deals start to fall apart.
You walk into a place and you immediately get a feeling. Sometimes that feeling is, “This is a great opportunity.” Other times, it’s more like, “This is where bowling came to die.”
That might sound harsh, but that’s how buyers think.
If the equipment isn’t working properly, if the scoring is outdated, if the place hasn’t been reinvested in, the buyer starts doing math in their head right away. I’ve walked into centers where I’m thinking, “I’m a million dollars in already, and I haven’t even talked to the owner yet.”
That affects what they’re willing to pay, or whether they’re willing to move forward at all.
Your Online Reputation Matters More Than You Think
Another thing that’s changed over the years is how buyers research a business. They’re not just relying on what you tell them or what I put together in a sales packet. They are going online. They’re looking at your online reviews. They’re checking your social media pages. They’re seeing how your center is perceived in the community.
That matters.
If the reviews are bad, or if the responses from the owner are argumentative or defensive, that becomes part of the story they’re evaluating. It gives them insight into how the business has been run and what they might be stepping into.
The First 10 Minutes Are Critical
When a buyer comes to see your center, they start forming opinions immediately. I can’t say it enough: Curb appeal matters. Cleanliness matters. The overall feel of the place matters.
If a potential buyer walks in and see tables that haven’t been wiped down, trash left from the night before, or balls sitting out everywhere, that sends a message. It tells them the operation might not be as tight as it should be.
You only get one first impression, and in this process, it carries a lot of weight.
The Human Factor
One thing that doesn’t get talked about enough is the role the owner plays in the sale. I’ve seen deals come together simply because the buyer and seller connected well. They trusted and respected each other.
Here’s a smoother, more natural version with better flow and punctuation:
I’ve sold centers because the buyer and seller connected, and the seller felt, “this is the right person for my place.” It really can be that simple. On the other hand, I’ve seen deals fall apart when the seller becomes defensive, difficult, or too involved in the process.
You have to remember; the buyer isn’t just evaluating the numbers, they’re evaluating the entire experience of working with you.
Why Some Sell—and Others Don’t
When you look at the centers that move quickly versus the ones that don’t, it usually comes down to a combination of factors.
The ones that sell tend to have:
- Realistic pricing
- Clean, organized financials
- A well-maintained facility
- A solid reputation in the community
- An owner who is prepared and easy to work with
The ones that sit are usually missing one or more of those pieces.
The good news is all of this can be addressed ahead of time. Selling a center isn’t something you should figure out as you go. It’s something you should be preparing for years in advance.
Because the reality is, you never know when someone is going to come knocking.
And when they do, the centers that are ready are the ones that get the deal done.
