Quantitative Analysis for Business Operations

Quantitative Analysis for Business Operations

Follow the outline structure:
1) Introduction:
Examine the entrepreneurial real estate venture of purchasing equestrian farms in location A vs. location B for the purpose of rental opportunities during the winter equestrian sports season.

2) Executive Summary:
There is a surge in demand for the rental of horse stables during the months of December through April. During the high season (December through April), there are X amount more horses than in the offseason. “There are approximately 9.2 million horses in the U.S. with approximately 3.9 million involved in recreation and another 2.7 million horses participating in horse shows”

“From mid-December to late April, around 2,500 riders and 7,500 horses descend on Wellington to make the Winter Equestrian Festival the headquarters of the horse set” (Haymann, 2019). “Based on manure estimates, there would be 17,000 to 20,000 horses in Wellington last season. But there were only about 10,000 permanent stalls and 3,000 temporary stalls in the village for the season” (Webb, 2019).

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3) Market Summary:
The scope of the market is all available equestrian farm real estate within commutable distance for participation in the Winter Equestrian Festival competition at Palm Beach International Equestrian Center (competition venue) in Wellington, Florida. “The Palm Beach International Equestrian Center is an “Equestrian Lifestyle Destination” sitting on 500 acres with a 100-acre equestrian show complex, 15 show rings, stables, vendor and dining areas, a clubhouse, and the White Horse Tavern, which features international, contemporary fine dining” (Wellington Equestrian Realty, n.d.). The scope of the property search is limited to Palm Beach County.

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4) Investment Opportunity:
Given proximity to the competition venue (Palm Beach International Equestrian, 3400 Equestrian Club Dr, Wellington, FL 33414) the higher the demand of seasonal stable rentals.

5) Presentation of Data:
Presenting and examining Farm A vs. Farm B. Comparing all details, including proximity to the competition venue, purchase price, and the number of stalls (Farm A and Farm B have 20 stalls). Use Zillow for rental comparables. Provide key metrics (ie, cash, financing, research, what markets, initial costs, etc.)

Farm A:
<link is hidden> /> Proximity to competition venue:
8 min, 1.3 miles (according to Apple Maps) – rideable (on horseback) distance from farm to the competition venue, trailer transport not required from farm to completion venue
Stall rental:
$20,000/stall for the season (using comparable property stall rental data from Wellington Stalls (n.d.))

Farm B:
<link is hidden> /> Proximity to competition venue:
12 min, 4.8 miles (according to Apple Maps) – not rideable (on horseback) distance from farm to the competition venue, trailer transport required from farm to completion venue
Stall rental:
$12,000/stall for the season (using comparable property stall rental data from Wellington Stalls (n.d.))

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6) Methodology:
Examine pay off table.

7) SWOT Analysis:
Compare the strengths, weaknesses, opportunities, and threats of purchasing Farm A vs. Farm B.

8) Break Even Analysis:

9) Results Analysis:
What is the current investment? Discuss strengths and weaknesses and which one you would want to invest in.