How do I sell a theme park?

Dear Mr. Theme Park,

I am considering selling my family owned and operated amusement park. How do I go about finding a buyer and making sure that I am getting the best price?

John T. from Texas

Interesting question John. During the last 10 years, ITPS has been responsible for approximately $800 million in buying and selling transactions of dry and wet parks. John, each park transaction and process has a personality and a life of its own. Some processes can move very quickly and others like molasses. 

There are important considerations to review when selling. 

First, are you really serious about the divestiture? 

Have you thought about the personal and family ramifications that can arise from a sale of a property? 

Is the property in a reasonable state of repair and will it show well when taken to marketplace? 

Recently, ITPS was engaged to look at a property that was once one of the best privately owned small parks in the country. It sold after the owner died and was taken over by a company which was tangentially related to our industry - a distant cousin. The new owner did not understand our business, and let the park lapse in terms of capital expenditures and, even worse it lapsed in maintenance expenditures. The park began to deteriorate over a few years. Assets deteriorated, as well as employee morale. During the time the park was owned by the new company, competition in the not too distant markets began to intensify. The park was in a severe downward spin. We looked at it for our client and suggested they forgo any further consideration. The park continue to go downhill in every sense. There was a time when we would have “snapped it up” immediately, but time expired. 

John, the reason I tell you this story is to impress upon you the importance of having your park in the proper shape necessary to sell it. There are a lot of factors to consider, but a persistent, clean property will help initiate the sale of it. 

You will also want to have a recent appraisal of the property - both land and assets so you know in advance their values. Sales can be asset sales or stock sales and your company’s business status will determine what type of sale is best for you. Your accountants and attorneys will advise you. It is best to have this understood at the outset for when you begin discussions with a buyer. 

We here at ITPS have what we call the “pilot’s checklist”, a procedure that we work through with the buyer/ seller from the start, so nothing is forgotten. 

That said John, the small amusement park transactional space is very limited these days. I can assure you there are various groups looking to acquire small parks. I suggest you engage a company of your choosing to help navigate you through the process. ITPS is one of a few companies who excel in this area. You can always contact the IAAPA for referrals as well. But I would suggest you engage in someone to assist you. An amusement park sale is not a normal real estate transaction. Nor is the appraisal of above ground assets, so please make sure you involve a company who understands the rides and attractions valuations. Proper preparation as outlined will help you in obtaining proper value for your park if and when you decide to sell.