Selling a mobile home park
or RV park has become an increasingly popular trend over the past year, with shifting markets and growing buyer demand. With a U.S. market size valuation of $8.3 billion in 2020
, the numbers speak for themselves.
But selling a mobile home park is far from easy. There are countless factors to think of, with no two campgrounds offering the same facilities, acreage and valuations.
Every sale must be made with a clear head and expert legal advice. Our business and corporate transaction lawyers
can provide exactly that while guiding you through the sale process. Here are the key areas you should be aware of:
How to Sell an RV Park or Mobile Home?
Uncovering The True Value of Your Campground
As with all sales, one of the major risks of selling a mobile home park
is undervalue or overvaluation.
It’s wise to use a professional appraisal service
, but this will come at an additional cost.
However, that might not factor in the demand for RV parks in the future. A major wave of retiring baby boomers is on the way, which could mean the true value of your campground is more than first expected.
It is also easy to forget that you’re selling far more than just land when selling an RV park
. Included in the sale will be all the equipment, amenities, branding, advertising, utilities and much more.
If you are planning on selling an RV park
, then make sure you have the following information available to determine the actual value:
- Age of equipment and records of last repairs
- Vendor contracts
- Advertising partnerships
- Amenity types and amounts
Timing is Everything
Timing is crucial when selling a mobile home park
. Most campgrounds have busy seasons and off-seasons and starting the process at the wrong time can leave you disappointed. While a potential buyer could make their purchase at any time in the year, sellers should start preparing their business at least a year before the desired sale date.
Having everything ready to go can help you cash in on great offers and opportunities without the need to panic into a low-ball offer.
Or business transaction lawyers can help analyze your situation, providing expert advice on ownership decisions when selling an RV park
Making Succession Plans
When selling a mobile home park, one of the most important steps to take is an exit strategy.
An exit plan in place will reassure a potential buyer and allow for a smooth transition between you and the new owner.
This is easier said than done when it comes to campgrounds. The volatility of RV park markets increases the pressure, so knowing how and what you need to do when the time comes can be extremely helpful.
Any succession plan should be over the management of financial, tax or legal issues, human resources and logistics.
Our business transactions lawyers can help you make these hard decisions, ensuring you don’t overlook any essential legal issues.
Many campground owners prefer to cut their ties to the business entirely. But others may choose to stay involved and help the new owner ease into the role.
These plans must be determined ahead of time. Prospective buyers will need to know your vision and the arrangement before closing a sale.
These decisions can greatly impact the type of buyer you’re looking for and are one of the main differences between selling a mobile home park and other businesses.
- Will you be willing to show the new owner the ropes?
- Do you want the new owner to gain control from day one?
- What kind of new buyer are you looking for?
Tidying Up Your Finances
Anyone selling a mobile home park must organize and complete their financial records. Potential buyers will need to see yearly tax returns for at least the past three years, alongside profit and loss statements and balance sheets.
Marketing data and sale information might also be required, as well as asset valuations, future sales and outstanding liabilities.
This may require thorough accounting reviews, appraisals and considerable time to get things sorted.
Choosing the Right Professional Advice
Regardless of your confidence in handling the sale alone, having a professional on your side can make a huge difference. Our business transaction lawyers can help. With a strong knowledge and experience, we can help with selling your mobile home park, business contracts, litigation, closures and much more.
Outshining the Competition
Selling an RV park tends to take far longer than owners think. It’s not as simple as putting up a for-sale sign and waiting for the offer. Aside from all the prior mentioned factors, you’ll also need to take care of on-site enhancements that will attract potential buyers.
This may include tidying up your office, shop, dated signage, broken equipment, plants, hedges, flowerbeds, pathways and anything that helps attract, rather than scare off, potential buyers.
By doing this, you can also outshine the competition. Florida and the U.S. is riddled with run-down, dead campgrounds. By avoiding this stereotype, you can attract owners looking for a business with potential.
The Importance of Location
Location has a significant impact on selling mobile homes. While your campground may have initially been set up in a tourist hot spot in the 90s, it may now be unfavorable compared to competitors near highways or attractions.
By learning about the surrounding area and uncovering what makes it valuable, you may be able to shine unique lights on your business. But location is a stumbling block for many people that can make selling a mobile home park complicated.
Contact a Business and Corporate Transaction Lawyer in Florida
Contact our Florida business transaction lawyers today if you’re considering selling a mobile home park or RV park or are in the process but have hit a stumbling block.
Battaglia, Ross, Dicus & McQuaid, P.A. is a U.S. News and World Reports Tier 1 law firm in Florida and has been helping Florida businesses since 1958. With award-winning experienced attorneys, we provide support in a wide variety of services from business litigation to transactional and ownership decisions. Schedule a free consultation
today to get started or to get any questions answered.