High revenue, strong trend… and almost no money left after debt.
This pickleball facility is listed at $650K, generating about $900K in revenue and $126K in cash flow.
On the surface, it looks compelling. Fast-growing industry, strong top-line revenue, and a motivated seller.
But once you run the numbers, the hype falls apart.
Deal Snapshot
Let’s run it through a standard SBA-style scenario.
Financing Overview
After debt, you’re left with about $31K per year.
That’s barely anything.
Why This Breaks
This deal has multiple problems stacking on top of each other.
- Severely overpriced: 5.3x vs ~2.5x industry average.
- Thin margins: 14% vs ~27% industry average.
- Weak take-home: ~$31K after debt.
- Low cushion: DSCR at 1.32 leaves very little room for error.
You’re paying a premium for a business that doesn’t actually pay you.
The Real Problem
This is what hype looks like in deal form.
Pickleball is growing fast, and sellers know it.
But growth in the industry does not automatically translate into profit at the business level.
Here, you’re seeing:
- Top-line strength: High revenue creates excitement.
- Bottom-line weakness: Low margins and weak cash flow.
- Premium pricing: Buyers paying for the trend, not performance.
That combination is dangerous.
Risk Profile
The risk here is higher than it looks.
- Elevated default rate: 4.36% vs ~3.53% across all businesses.
- Operational sensitivity: Small changes in costs or demand can wipe out profit.
- Trend dependency: If demand cools, margins get hit first.
With this little cushion, even small issues become big problems.
Who This Is (Not) For
This is not a safe deal.
- Not for passive buyers: Cash flow is too thin.
- Not for conservative investors: Too much downside risk.
- Only for optimizers: Someone with a clear plan to fix pricing, costs, or utilization.
If you can’t materially improve the business, this deal doesn’t work.
BizHub Verdict
This deal scores a 3.9 / 10.
Overpriced, underperforming, and fragile.
This is what happens when hype gets priced in - and profit doesn’t.
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Want to see the original listing? View it here →