Acquisition and Divestiture

If you are considering a purchase or sale of a Family Entertainment Center, Route, or related company we can help. Pinnacle is well experienced and positioned to understand and value family entertainment assets. We can play a high-value role in brokering acquisitions or joining your due diligence team. Similarly, when exiting a market, it is important to make sure you are getting top dollar for your facility and assets.

The team at Pinnacle Entertainment Advisors have expertise in all phases of a family entertainment center’s life cycle. Whether you are just getting started, looking to expand, or leaving a market, Pinnacle can help you have the confidence to make the right choices.

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We offer a free one hour phone consultation to discuss how we can help you succeed. We would love to discuss your project with you.

Pinnacle Success Stories

Shakers Fun Centre Calgary, Canada

Pinnacle Entertainment Advisors was retained by the owners of this well established, traditional family entertainment center to provide a feasibility report and various site evaluations within the Calgary market, in connection with a possible site move. Pinnacle also reviewed the existing financials and brought other resources to the table to assist in the growth of the business. Pinnacle advises the owners on an ongoing basis and Redemption Plus is the lead merchandise provider.

Municipal Government, Southeast United States

Pinnacle has been retained by a southeastern U.S. city to assess the feasibility of creating and executing a major family entertainment and recreation center in the City. The initial phase includes the development of a feasibility and conceptual plan. The project details are currently confidential.

Amazing Jakes, Aurora, CO

Our client National Retail Properties (NRP), a major shopping center developer, took possession of this location from its original tenant, Amazing Jakes. It subsequently signed a long term lease with a new tenant for the space and asked Pinnacle to advise on the liquidation of furniture, fixtures, and equipment. The 50,000 square foot space included a major FEC and full pizza buffet restaurant with five dining rooms and full kitchen. We assisted in managing the liquidation including facilitating an absolute auction process with favorable results for the our client, NPR.

The Enchanted Castle

Assisted the owner in developing the sale prospectus for the business, as well as developing the marketing strategy, which contributed to its successful sale.

Namco Cybertainment, Inc, Chicago, IL

Pinnacle was retained by this nationwide game and FEC chain to assist with the marketing of certain assets as part of a strategic repositioning of its operations.

Fun Enterprises, Inc

Pinnacle has provided management services for this arcade and FEC chain’s operations in Puerto Rico. We began this ten year relationship by securing a lease for the company in Plaza del Sol, Puerto Rico’s newest shopping mall. We also assisted with design, economic planning, attraction selection, construction, and grand opening. We retained an interest in the project and continued to serve the client through a multi year management and consulting agreement. We then structured the company for sale, developed the prospectus and marketed the business, negotiating the successful sale of the business to an international operator.

National Retail Properties, Inc.

National Retail Properties is a real estate investment trust, investing in single-tenant retail properties generally subject to long-term, net leases. National Retail first retained Pinnacle to assess two of its tenant locations, big box family entertainment center/pizza buffet operations. We performed an appraisal, including site survey, contents inventory and valuation on all entertainment equipment, restaurant equipment, furniture, and fixtures for the two sites in the Denver and Dallas markets. We continued to serve the client in a subsequent engagement six months later. Pinnacle conducted an appraisal and valuation of five FEC properties located in three cities. Scope included appraisal, including site survey, contents inventory and valuation on all entertainment equipment, restaurant equipment, furniture, and fixtures for each of the five sites.

Sammy Corporation/SEGA

During the merger process between these global manufacturers, Pinnacle was retained to provide extensive research on the US marketplace. We conducted “on the ground” surveys of product placement in select markets, and produced and extensive analysis of the U.S. market for Sega.

Ray’s MTB East

Pinnacle worked with the ownership team in developing the Business Plan for this full service 120,000 square foot Indoor Recreation Complex with a central focus on Mountain Biking. The facility will be geared towards athletes of all types and ability levels and located in central Long Island near the Nassau-Suffolk border. Ray’s East will feature a wide array of attractions including a fitness club, game lounge, and restaurant. Pinnacle gathered the market data and produced a comprehensive Prospectus/Information Memorandum for investors, real estate owners, and municipal partners.

Fantasy Entertainment, Inc.

Pinnacle analyzed Fantasy’s coin-operated Crane program, personnel development, systems implementation, and revenue growth for this worldwide operator of toy cranes and photo booths. We advised the ownership to downsize its crane operations in favor of focusing on the core photo booth business. Pinnacle assisted with the sale of crane assets.

Pinnacle Entertainment Group, Inc.

We have also successfully sold and acquired our own operations. Pinnacle Entertainment Group was an amusement operator in some 75 locations, primarily serving Wal-Mart Stores, Inc, in Southern Illinois and Eastern Missouri. In addition, Pinnacle partnered with a local operator in San Juan, PR to operate an additional 75 locations throughout Puerto Rico. Both businesses specialized in crane and merchandise machine operations, along with video games, kiddie rides, and bulk vending. Pinnacle was active in a series of acquisitions and divestitures:

August, 1996: Pinnacle Entertainment, Inc. and Pinnacle Entertainment Group, Inc. founded.
October, 1999: Mr. McAuliffe negotiated the sale of Pinnacle Entertainment, Inc. to Family Golf Centers, Inc. (NASDAQ: FGCI).
February, 2001: Pinnacle Entertainment Group, Inc. acquired the assets of Pinnacle Entertainment, Inc. from FGCI.
January, 2002: Pinnacle Entertainment Group, Inc. acquired the assets of Lorin Associates, a St. Louis based amusement operator. Pinnacle incorporated many of the locations, sold others, and closed underperformers, liquidating excess inventory.
April, 2005: Pinnacle Entertainment Group sold all of its game assets to Coinstar, Inc. (NASDAQ: CSTR)
April, 2005 – April, 2008: Pinnacle Entertainment Group, Inc. focuses on developing its consulting practice.
April, 2008: Pinnacle Entertainment Group, Inc. suspends operations, Mr. McAuliffe merges his consulting practice into Redemption Plus, LLC, which forms Pinnacle Entertainment Advisors by Redemption Plus to launch its consulting and Customer Success capabilities.

Edison Brothers Stores

Divestiture of twenty properties through sale or liquidation resulting in income exceeding budget by over 100%, producing a return of over 80 cents per dollar of book value in a Chapter 11 environment.

Sun Entertainment Investments

In 1995 Mr. McAuliffe served as chief executive of the $50 million entertainment division of Edison Brothers Stores, Inc. (NYSE:EBS) The parent company was a national retailer with $1.75 billion in shoe and apparel sales. Edison experienced a significant decline in the business of its core shoe and apparel stores which led the parent to file for Chapter 11 protection late in the year. Mr.McAuliffe structured a management buyout plan for his division, attracted the private equity firm Sun Capital Partners as equity investors, negotiated a binding finance agreement with a major Bank, and received bankruptcy court approval for the acquisition, subject to higher and better bids. The Sun Group withdrew at auction in competition with Namco Cybertainment, Inc. a Japanese industry manufacturer with US operations, collecting a break up fee. Over 90% of the entertainment locations continued in operation under the new owner.

National Video Game and Coin Op Museum

Advised the managing foundation on wind up and negotiated the placement of the collection.


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