The Right Time to Sell

12th February 2010
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For a caravan park owner one of the most difficult things to come to terms with is the prospect of selling their business. Most operators have built their business up over many years and the idea of selling it can be a traumatic experience, especially if the business has been handed down through the generations. There are many moral and financial decisions to make prior to going to the market as well as the process of disposing of the company and/or asset which in the majority of cases would be handled by a reputable specialist agent. One of key decisions prior to marketing the park is the timing of when the property should go to the market.

Prior to the end of 2007 annual caravan park sales were predictable often coinciding with the beginning and end of the season. The best months for selling were typically October and November and January, February and March. In today’s market sales are unpredictable and could be achieved at any time of the year whether in the holiday season or not. The core holiday periods however, around July, August, December and a week either side of bank holidays are generally very quiet and if a park owner wanted to gather early momentum with the sale of their park these periods are best avoided.

In essence each park owner has one good chance of selling their business, if sold quickly a park can obtain a premium price but if a property remains unsold for too long it could have an adverse effect to both value and the performance of the business. Pricing is an obvious cause to properties remaining on the market too long; an overpriced property is difficult to sell and may not sell at all. The result of overexposure could lead to customers and staff finding out about the sale and becoming unsettled thus disrupting the everyday running of the business. Typical of over exposed properties is the ‘it must have something wrong with it’ attitude, as ill founded as this may be, causes would be purchasers to disregard properties or presents an opportunity for applicants to submit a lower offer.

There is a way of counteracting the negative effects of full marketing and that is to take a confidential approach to selling a park. As an agent we have a list of between 2000 and 3000 applicants at various stages of their search to purchase a caravan park. We would always suggest to Clients to let us find them a purchaser through our contacts prior to resorting to internet marketing. In the majority of cases Charles F Jones & Son LLP are able to use their resources to find a ready willing and able purchaser. Whilst selling a park can be an emotional upheaval it need not be a distressing event, the confidential approach can help achieve a sale more smoothly.


RP

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