SELLING A CARAVAN PARK
Murray will discuss the options and guide you through the process
Thinking of selling YOUR PARK?
Nothing has changed! It is just like when you purchased your business.
Your buyer will be seeking answers to the same questions you did and maybe some more:
- Do we like the location?
- What is the revenue?
- What is the profit?
- Is the asking price realistic?
- What is the quality of plant & equipment and the residence?
- Is the park well maintained?
- Is there potential for further growth and/or development?
When doing an appraisal of your business I will use your end of year financial reports supplied by your accountant to prepare a spreadsheet of your last few years of trading. This is supported by Occupancy reports and other information to provide as much positive information as possible to interested parties. The Adjusted Net Profit is the major factor in determining your sale price.
If you are serious about selling, it is best to set a realistic asking price and a realistic expectation of the sale price. If these are set too high and are not in line with industry benchmarks, your business will not sell within a reasonable time. Having made the decision to sell, most vendors want to get moving. Be realistic in your expectations and your business will sell.
Prepare for Sale
You will probably know at least 12 months in advance that you are ready to sell.
Use that time constructively. Walk around your park. Inspect it as though you are the buyer. Look for areas to improve.
- Are there areas in need of repair, tidying up or planting out? Start now.
- Are there cabins and other areas that need some paint? Start now.
- Is there any decking that could do with some oil? Start now.
- Can the camp kitchen do with a makeover? Start now.
- Could the amenities block do with a steam clean especially in the corners? Start now.
- Is there any visible rust which you can treat and paint over? Start now.
- Can the residence and reception do with a de-clutter and makeover? Start now.
The Sale Process
Once you decide to sell, interview a couple of brokers/agents with specific experience in the sale of caravan parks, then decide your preference.
Expect that they will work with you on what needs to be done to ‘Prepare for Sale’.
- Your broker will appraise your business and you will agree the asking price.
- You will agree fees and costs and sign an agency agreement.
- Your broker will accumulate information and prepare a profile of the business.
- It is best you or your broker discuss the sale process with your staff
- Interested parties will be brought to your park for an inspection. Be aware though, some people will visit your park unannounced and look around without the broker.
- Your broker will handle all negotiations and keep you informed.
Feel free to call Murray if you have any questions – 0407 835 073