Buying and owning a bowling center is a challenging, stimulating and highly profitable experience. Bowling is a people-oriented fast-action business offering above average returns, strong cash flows and a long history of stability and success.

We have been involved in the bowling industry for many years. Most of us have owned centers. As the country's foremost bowling center brokers, we have worked with hundreds of people who sought to buy a center. We have learned a lot about bowling and how the process of buying a center works.

We want to share with you our knowledge, our experience--and our excitement at the great business opportunity bowling offers.

FINDING THE RIGHT CENTER

Here are few guidelines for selecting the right center for you:

We want you to know something about how we here at Mischel & Company operate. Our internal operating manual clearly states these policies and we live by them:

HOW THE PROCESS WORKS

After you have reviewed basic information about a center it will be time for you to visit the center you have an interest in. The first time you probably will go by yourself. You will not identify yourself nor meet the owner, but rather the purpose will be to look around briefly and to get a feel for the facility.

During every visit to a center, you must handle yourself with absolute discretion. In almost every case, the staff and customers of a center do not know it is for sale. The owner fears adverse reaction if someone finds out.

The old cliché is that in life, timing is everything. The same is true in buyer a center. The cardinal rule in this game is when you see a property you like--go for it. The reason for that rule grows out of the current bowling center marketplace. Right now there are many more buyers than quality centers available. Information on each center normally is sent to a number of buyers at the same time. The prize will go to the one who acts first. By all means, don't rush and don't do anything hasty, but also do not hesitate when you see something you like.

THE NEGOTIATIONS

Let's assume that you have found the right center, have visited it, checked out the market and are ready to proceed. What happens now? This is the sequence:

1. On your behalf, we begin preliminary negotiations with the seller. We work with both buyer and seller to establish price, terms and structure. A bowling center sale can be set up in many different ways: total purchase, partial purchase, total lease, partial lease, management contract and more, and each of those has dozens of variations.

We pay close attention to the financial and tax consequences for buyer and seller. The basic principal: a sale must be equitable to both buyer and seller.

(Understand that in many cases the seller will be holding the buyer's note and he wants to get paid. Thus, the seller will want you to succeed as much as you do; in that sense, you and the seller will be "partners" until that debt is retired.)

2. When we feel the parties are close, we will prepare (without charge) an offer which puts down on paper what the parties have been talking about and which contains all of the significant terms of the sale.

We find that once this paper is on the table, negotiations tend to move rapidly to conclusion. Once any necessary changes are made and everyone has signed it, this document becomes the basic agreement of sale.

3. Throughout the entire process we will handle all negotiations so each party can maintain its own negotiating position. When we feel the time is right we may call for a face-to-face meeting to resolve some points.

4. At some stage in the process, either before you submit your offer or within a few days afterwards, you will have an opportunity to inspect the building and equipment closely to determine its condition. This is an important part of the process because in most cases the center is sold "as is" and you do not want to face any unexpected large capital expenditures soon after closing. Carefully check the roof, HVAC system, parking lot, pinspotters, lanes, refrigeration, etc. If you are not knowledgeable in these areas, bring in outside experts to assist you.

5. We recommend that every buyer retain his or her own attorney to read over the documents and his/her own CPA to review the financials and the tax implications of the purchase to the buyer. We are happy to work closely with your advisors to be sure everything is in order.

6. During this process, a number of problems may well emerge which appear to make the deal impossible. Keep cool and do not worry; this is normal. One of the broker's primary tasks is to overcome the obstacles; fortunately, we have been at this long enough that generally we can find a way to solve the problems that pop up. So do not be surprised if you find yourself encountering a seeming roadblock; it is not unusual and, in all probability, it will all work out for you.

7. Before closing, attorneys for each side may prepare a series of supplementary documents (notes, mortgages, security agreements, perhaps an expanded sales contract, guarantees, etc.). Title work may be necessary. The liquor license transfer process is triggered. Other details are attended to. We help at each step along with way.

8. Just before closing, an inventory will be taken. At closing, dozens of documents will be signed, money changes hands, and you walk in the door to start your new adventure as a bowling proprietor.

TWO IMPORTANT CONSIDERATIONS

You may well end up owing the seller a substantial sum of money. If so, you can expect that you and all of your partners will have to give personal guarantees to the seller. You also should be prepared to give him a summary of your background (a resume, for example) so he understands your business record, work experience, education and bowling-related activities. The biggest fear a seller has is that a buyer will default and he will get the center back. That is why he will insist on knowing all about you and on receiving your personal guarantee which is both a psychological as well as a financial commitment. You also will have to submit your personal financial statement to show what your guarantee is worth. Remember, if you were financing with a bank, your personal guarantee definitely would be required as would personal financial statements; because the seller in essence is "lending" you the money to buy his center, he is entitled to the same commitment.

We will help you after the sale. We want you to succeed. If you call us in the future, we will happily help you in any way we can. Of course, the seller probably will work with you as well and give you any assistance and training you need during the transition period. Remember, he has a vested interest in your success.

A FINAL THOUGHT

e have saved one of the most important points to the end to emphasize it. We call it the "Oh My God! What Am I Doing?" syndrome. "Buyer's Remorse -- "Cold Feet" -- It's a natural part of the process. Obviously, there are risks in buying any business. If you didn't have second thoughts somewhere in this period, you wouldn't be normal. Everyone goes through this experience so be prepared because you probably will too. Remember that while the risks may be great, so are the rewards - financial, emotional and psychological. Another is to follow the steps outlined in this pamphlet which should reduce those risks and help you feel confident that what you are doing is the right thing for you.