Valuing a Marina or Resort

What is My Marina or Resort Worth?

When considering selling your marina or resort, viewing it from a buyers standpoint goes a long way when determining value. As your advisor, we pay attention not only to the physical aspects, but more importantly the internal workings and future earnings of your marina or resort. The value is more involved than just reviewing financials placing a value on assets. The healthier financially you are, the higher valuation can be realized. It is never too late to begin positioning your asset for an eventual sale.

Achieving the Highest Valuation

I could not begin to count the number of sellers that we have witnessed that have left money on the table, sometimes millions of dollars, because they did not take into consideration ALL of the key metrics that goes into valuing their marina, resort, hotel, marine sales business or boat storage business. Typically, one or two steps are missed when a seller attempts to sell their asset on their own, which has resulted in millions of dollars not realized in the sale of a boat sales business, waterfront hotel, marina and barge business or other marine asset or resort asset.

A savvy buyer would like for you to think it is as simple as looking at the financials and valuing physical assets, but there are other critical steps involved in building a valuation. There are multiple formulas for future revenue potential and repeat business, etc. Your most expensive asset requires an experienced team to realize the full and complete value of that asset. Our advisors can walk you through a complete valuation process for you asset to formulate a maximum price point. Working on a valuation for you asset? Read our critical blog,

How Much is My Marina Worth?

How Much is My Resort Worth?

Choosing the right valuation methodology is essential for accurately assessing the value of marinas and resorts. While income-based approaches focus on cash flow generation and profitability, market-based methods rely on comparable sales data and market trends. Asset-based approaches consider the value of tangible assets such as land and infrastructure. By integrating multiple valuation methodologies and considering the unique characteristics of each property, owners can arrive at a comprehensive and well-rounded valuation.

Properly valuing marinas and resorts is a nuanced process that requires a deep understanding of market dynamics, property characteristics, and valuation methodologies. By leveraging the insights provided by our advisors, stakeholders can navigate valuation challenges with confidence, maximizing returns and making informed decisions in the dynamic maritime and hospitality sectors.

Does your rv resort, marina, marine business or waterfront resort have multiple revenue streams? Does your business have room and demand for expansion? Are you considering certain improvements before the sale? All of these scenarios and more can add to the complexity of determining how much your business is worth. It is prudent to call on the assistance of our trusted advisors to provide more value to the sale. There are specific formulas that we use to calculate future earnings on a marine property or resort than can potentially add millions to a businesses value. Read more about selling your marina or resort

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Buyer Concerns

IN WHAT TYPE OF CONDITION IS YOUR MARINA AND/OR RESORT?

When selling real property or a business, curb appeal and first impressions are paramount. Deferred maintenance on the property is one of the first items that should be addressed. A buyer will naturally look for any issues as they are figuring a value for the property. : It is crucial for a seller to address the condition of their marina or resort before trying to sell it for several reasons. Firstly, the condition of the property directly impacts its market value and desirability. Potential buyers are more likely to be interested in a property that is well-maintained and in good condition, as it represents a sound investment. Neglected or poorly-maintained marinas and resorts may deter potential buyers and lower the property's value. Additionally, addressing the condition of the property before selling demonstrates transparency and integrity, which can build trust with potential buyers. By showcasing a well-maintained marina or resort, sellers can highlight its potential for profitability and long-term success, thus attracting serious buyers. Finally, addressing any maintenance or repairs beforehand can help streamline the sales process and prevent any last-minute issues or negotiations. In conclusion, addressing the condition of a marina or resort before selling it is essential for maximizing its value, attracting serious buyers, and facilitating a smooth sales process. If there are improvements that have been put off or delayed, it is in your best interest to address them pre sale.
IS YOUR EQUIPMENT OBSOLETE AND NEED UPGRADED?

Marinas and resorts should continuously evolve to accommodate client requirements that are ever changing in the marketplace. Although your marinas and resorts equipment may be in good physical condition, it may not be optimal to accommodate today’s market demands. Older equipment is more of a liability than an asset. This can reduce your assets overall value by limiting your "buyer pool" for those buyers looking for up - to - date upgrades. This is one of the main reasons planning for dispositions of an asset should start years in advance and should be a part of your repositioning efforts.The more forethought you put into planning and the changes you make to decrease obsolesce in the marketplace will be worth the investment when the time does come to sell, resulting in a higher price point.
WILL THE STAFF REMAIN AFTER A SALE?

In most cases a marina or resort buyer will want to retain the existing staff. During buy/sell negotiations a quality, responsible staff can be used as an argument to increase the value of your marina. The smoother the transition period for a buyer, translates into a higher valuation for your asset. A seller of a marina or resort should have a good staff lined up for a new potential buyer because it demonstrates the professionalism and capability of the business. A well-trained and knowledgeable staff can provide a seamless transition for the new owner, ensuring that operations continue uninterrupted and the new owner feels confident in their investment. Additionally, a competent staff can highlight the unique selling points and potential of the marina or resort, ultimately contributing to a successful sale. By showcasing a strong team, the seller can instill confidence in the potential buyer and potentially increase the value of the business. Overall, having a good staff lined up is crucial for presenting the business in the best light and facilitating a smooth transition for the new owner. If you have employed family or friends that do not intend to stay on after the sale, then you should be proactive and line up quality replacements for those positions beforehand.
HOW DOES THE MARINA OR RESORT COMPARE TO COMPETITORS?

An educated buyer will research the market before they approach to make an offer. Viewing your asset through the "buyers eyes" or "sellers eyes" will prepare you for a successful sale. Our firm operates in the marketplace on a daily basis and we receive feedback from buyers and sellers as to what they value and how they operate. Our firm is loaded up with the latest knowledge and trends to assist you with optimally positioning your asset, or to provide exceptional negotiation strategies for the highest and best outcome.
VERIFY YOUR FINANCIALS

It is crucial to verify the complete financial history of a marina or resort when considering a business sale for several reasons. Firstly, it allows potential buyers to gain a comprehensive understanding of the business's past performance, including its revenue, expenses, and profitability. This information is critical for buyers to assess the financial health and viability of the business before making a purchase decision. Additionally, verifying the complete financial history helps to identify any potential red flags or areas of concern that may impact the value of the marina or resort. This could include outstanding debts, legal issues, or other financial liabilities that could pose risks to the buyer. By thoroughly examining the financial records, buyers can better evaluate the potential risks and rewards associated with the acquisition. Financial records at many leisure businesses do not show the true value of the asset because owners may be using tax advantaged strategies to reduce their tax liability. Tax statements and other reporting documents rarely show the true, complete income. Regardless of what you are striving for, you need to show the truest form of your financials and have evidence. An savvy buyer can utilize this position to negotiate a lower sales price. A seller should take this into consideration during pre sale planning because sometimes the dollars saved in minimizing tax liability ends up being less than what you could realize in your sale price.
WHAT IS YOUR ASSETS FUTURE DEVELOPMENT OPPORTUNITIES?

Whether it's a well-equipped marina with boat storage and maintenance services or a luxury resort with spa, dining, and recreational facilities, buyers can usually to capitalize on the existing infrastructure and reputation of a property. Most buyers of leisure assets look to improve upon an asset, whether that be enhancing the existing business structure or adding additional income streams. There are some institutional investors that prefer complete turnkey properties, but most buyers are looking to add value. There is a specific formula for factoring in future earnings in your assets valuation for planned improvements, but certain items need to be in place to do so. If you had planned improvements that have not yet been implemented, they could provide value to a sale as long as you have costs, budgets, construction plans, feasibility study and Permits already in place.