There are many reasons that prompt a sale of a park which often include the ambition to acquire a larger business, retirement or semi-retirement, break-up of partnerships, illness or bereavement. Some of these may allow you to plan ahead, whilst others may crop up unexpectedly. Whatever the reason for a sale, all vendors have one thing in common – the desire for a smooth sale at the best possible price.
Having made the decision to sell your park there are many things you can do to ensure you receive the maximum sale price and to enable a smooth and timely transaction.
1. Explore Planning Potential – There are often opportunities to rationalise or improve the extant planning consents within the existing property. Alternatively, the existing consent may already allow for more lucrative alternative uses which has to date not been recognised or exploited.
2. Develop Wisely – Having obtained planning permission, the question is whether or not to develop it. Maximising potential and ultimately realising the best value does not necessarily mean developing to the full everything for which there is consent. Will the development, when completed add to the value? Would a buyer prefer to have the chance to input their own business model?
3. Maximise the Earnings – The value of an established Caravan Park depends not only on the physical aspects of the property but crucially on the earnings and profit that it is able to generate. It is essential for operators to look at all aspects of their business to make sure they are reflecting and taking full advantage of the trading potential and that this is demonstrated in the trading accounts. An experienced agent can highlight un-exploited opportunities pre-sale and ensure they are drawn to buyers’ attention if appropriate.
4. Prepare an information pack for sale – In addition to preparing suitable financial information, it is essential to check other relevant paperwork is available and up to date including planning consents, licences and certificates before embarking on a sale. This will smooth the path and avoid problems later on. We will typically co-ordinate and undertake this aspect however having the relevant information available at the outset pays dividends in terms of timing.
5. Presentation of Park – Once the decision has been made to sell there are still a number of things an owner can do to influence the final sale price. It may seem an obvious point but make the best of your property to show it is the best light. Ensure the park is presented in a neat and tidy fashion and be proud to show it off. Don’t cease investing in the park or put off decisions but instead, continue to run the park as you have always done.
6. Professional Advice – Establishing how much your property might actually sell for is probably the most important part of the sale process and it is imperative that you take professional advice. Since each Caravan Park is unique, valuation by comparison and analysis of trade is a specialist area that requires specialist advice. The particular type of buyer or best purchaser in the marketplace is something that an experienced professional advisor will be able to advise upon in detail. There is usually a very good reason why prospective purchasers often approach park owners direct and despite claims to the contrary, it is seldom because they want to pay the best possible price ! Take advice, including advice on the tax position from a specialist Tax adviser.
7. Marketing your Park – Ensuring the right strategy is in place to fit your requirements and to maximise the realisation is imperative. You may not want the park to be openly marketed, and a confidential approach may be a more discreet option. We can advise you on the pro’s and cons of the options available.
Our aim is not just to introduce a buyer, and then to sell your park, but to help with every aspect of the process from the outset. As your specialist agent we prefer to get involved early and are often tasked with liaising with our client’s accountants, planners and solicitors, whilst advising on a wide range of supplementary matters prior to and during the sale process.
To find out more about our services or to discuss your park in more detail please contact us using the details below.
Southern Office – 01884 256741
Northern Office – 01347 822005