What Affects an RV Park’s Value?
An asking price is the amount an owner hopes to receive. A valuation is an assessment based on a defined scope and supporting information. A proposed purchase price is what a particular buyer offers under particular terms. Those figures can differ.
Start with the valuation question
The SBA describes income, market, and asset approaches to business valuation. These consider earnings and risk, comparable business sales, or assets and liabilities. The relevant approach depends on what is being evaluated. Source: SBA guidance on business valuation.
Ask the person preparing or explaining a valuation what is included, which records support it, and which assumptions still need confirmation.
Questions to bring to a park-specific discussion
Prepare answers where you can, and label unknowns:
- What land, business interests, equipment, and other assets are included?
- What period do the income and expense records cover?
- How do you describe the operating season and mix of stays?
- What maintenance or improvements would you like the reviewer to consider?
- What evidence supports any proposed additional sites or expansion plans?
- Which recent sales, if any, are being used for comparison, and why are they relevant?
These are discussion prompts, not a pricing formula. Do not treat an unverified expansion idea as an established part of the operating park.
Make figures comparable before drawing conclusions
For example, if one property summary includes cabin income and another only includes RV site income, ask how that difference is handled. If an expense figure excludes work performed by the owner, identify that assumption rather than leaving it unexplained.
Avoid choosing a price from a generic per-site figure or an unsupported revenue multiple. Ask for the reasoning and evidence behind the figure being proposed.
Compare the terms as well as the number
For each proposal, list the price, payment timing, conditions, included assets, proposed closing date, and unresolved questions. Keep your own notes separate from agreed terms. Discuss the proposal with your advisers before deciding what works for you.
When we make an offer, we explain it in writing, and it includes the closing costs, which we pay.