Your Step-by-Step Guide to Buying a Campground

In recent years an increasing number of Americans are seeking respite from the daily grind by retreating to nature. Pastimes such as hiking, camping, and other outdoor activities are on the rise. In fact, each year since 2014, 1 million additional American households have started camping.

buying a campground with sunbeltAre you considering entering the tourism industry by buying a campground or RV park? If so, this may be the time to do it! Use this Sunbelt Business Brokers’ buyer resource as a guide to finding the right campground or RV park for you.

6 Steps to Take When Buying a Campground

Follow these six steps to ensure a smooth transition when buying a campground.

1. Do Your Research

When it comes to buying any business, a passion for the industry is key. Those who have industry experience often fare better than those who don’t. This is especially true when buying a campground. If you’re new to camping or to buying a business, make sure you complete your due diligence to ensure you are equipped with all the facts. Remember, knowledge is power when it comes to buying a business.

2. Consider Viable Options

Leading the camping renaissance are Millennials, who now account for 38 percent of the 75 million active camping households in the U.S. With this generation’s desire for experiences over material items, the success of a campground is heavily dependent on its ability to market to Millennials.

When looking at specific campgrounds to buy, consider the accessibility of appealing natural landmarks such as rivers, lakes, mountains, State Parks, National Forests, etc., that would draw outdoor enthusiasts. Successful campgrounds are typically located in relative proximity to these types of tourist destinations.

3. Determine What the Sale Consists of

When you are negotiating the terms of sale, it is important to ascertain what, exactly, is included. If particular assets aren’t included in the sale, the asking price should reflect those omissions.

For example, most campgrounds are required to have a dump station for septic waste. These complex systems can run anywhere from $250,00-$550,000, depending on capacity. If you had to purchase equipment such as this for an additional cost, it could potentially add thousands more to an already considerable investment.

4. Inquire Why the Campground Is for Sale

Begin negotiations by asking the seller, “Why are you selling the campground?” Typical answers to this question are reasons such as industry burnout, retirement, illness, or new business opportunities.

But if the seller indicates that they are selling the campground due to performance or financial issues, heed this as a warning. Of course, it is possible that under new management the campground’s performance may turn around, but you should investigate further as to why business is poor before you close the deal.

5. Decide on a Fair Asking Price

The second most important question you can ask the current owner is, “How did you arrive at your asking price?” Did they receive a formal business valuation? Or are they relying on a broker’s opinion of value?

Because of the multiple ways to establish value, it is in your best interest to understand how the current owner reached their asking price. Without a credible valuation, you will likely be able to negotiate the price in your favor.

6. Hire a Professional Broker

Sometimes your best bet is to leave these details to a professional. A certified business broker will be able to guide you through each step of buying a campground, from identifying attractive listings, to handling closing.

If you’re ready to begin browsing campgrounds for sale, consider working with Sunbelt Business Brokers. Our experienced team has a successful track record of connecting interested buyers with willing sellers. Depend on Sunbelt Business Brokers to help you realize your entrepreneurial dreams. Contact a Sunbelt office near you today!

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