Report all income and only deduct legitimate expenses

You own a “cash business.” We understand your objective has been to keep your tax liability as low as possible, because you work hard for that income! To accomplish that objective a business wants to keep a very thin line between income and expenses.

In preparing ahead to sell, it is extremely important to report all income from all sources. Equally important is to avoid any “bloating” of expenses. Report only legitimate expenses. The goal is to now keep the gap wider between income and expenses, so that your true net is as high as possible. This net, or expendable cash, is what the potential buyer will be zeroing in on when assessing if there is enough to pay a mortgage payment as well as give them enough to eat 3 meals on! Not only the potential buyer, but the lender will be focusing on this as well. Yes, you will have a greater tax liability; however on the other hand you may very well command a higher sales price and a quicker sale by doing so and actually WINNING when looking at the big picture.

Report all income and only deduct legitimate expenses



"The goal is to now keep the gap wider between income and expenses, so that your true net is as high as possible."

Don’t ask too much or too little for your business

This is your largest single investment. Your hope is to receive the highest price possible. We understand. Placing an unrealistic price tag on your business, despite your temptation, will lead to absolute frustration and a dead end road for you. Potential buyers will be comparing your business to others – and if your business makes no financial sense, they will “pass you by.”

Often owners feel they need a “lot of negotiating room.” This is NOT necessary. The astute potential buyer will immediately recognize the value being correct, and may likely assume if they don’t jump on this quickly, someone else will. Another common feeling is “we can always come down in price, but we cannot go up.” Although this sounds very logical, with an unrealistic price tag you could be missing many potential qualified and cash buyers even viewing your business. Another potential negative could be the possibility of becoming “market stale” and having potential buyers wondering “Why has this business been for sale so long?”

THINGS TO KEEP IN MIND WHEN SETTING YOUR ASKING PRICE:

Sometimes owners tend to price their business too low – sometimes because they are simply burned out, other times because of an illness in hopes of a quick sale, and at times because of poor advice.

Don’t be tempted to set your price based upon what you heard one of your competitors received. Often that is an erroneous number inflated by that owner for personal ego purposes.

Consider getting a professional appraisal.

We offer a business assessment profile, at NO cost or obligation. Please call if you desire our profile assessment mailed to you. Give yourself an advantage. Price it correctly and sell for top dollar!

Plan ahead and do not wait too long to get ready

Statistically, most Campground, RV Park and Resorts for sale do not methodically plan for the “sell date.” Many also feel once they decide to sell, it will simply be a matter of a few months process and then they can pack and be on the road. Waiting too long, or not planning in advance, can cause many business owners to miss their window of opportunity. Please keep in mind, it can take a good year, sometimes more (depending primarily upon price and location) to sell a Campground, RV Park or Resort. Don’t count on your business selling in 2-3 months.

Long term planning is a key to any successful sale. Do you want to “be out” in 2 years? The next 3 months might be an opportune time to start the steps that will accomplish that goal.”


PLAN AHEAD "It can take a good year, sometimes more to sell a campground, RV park or resort."

Consider seller financing

Simply put, this is where you become the bank. You take the down payment as a bank would do, and you receive the monthly payments from the buyer. In many cases, you could receive a higher selling price because the buyer feels YOU have enough confidence in your business to “play the bank role.” The buyer also avoids a large amount of up front money a lender would charge for document preparation fees, etc. The buyer will also recognize the fact that it will be easier and less stress on them to do seller financing with you opposed to a lender – especially in the present climate with lenders. They’re cautious about lending money for business purposes after being so “burned” in the residential housing foreclosure.

SOME ADVANTAGES OF SELLER FINANCING:
An advantage to you regarding seller financing is the fact that you don’t have to “sit it out” for potentially 2 months for a lender’s final approval. Sure, there is a minimal risk to you, however not as great as you might think providing you receive at least 30% down. You can structure these seller-financing terms as creatively as YOU desire. Typical end dates are 3-5 years. If you want to discuss all aspects of potential seller financing, please give us a call.”


SELLER FINANCING "You can structure seller-financing terms as creatively as YOU desire. Typical end dates are 3-5 years."

Find the right consultant to represent your business

Finding the right Business Consultant to help you sell your business is crucial to your success. The wrong consultant can cost you valuable marketing time. You deserve nothing less than a consultant that understands your SPECIFIC business. We stress SPECIFIC. You deserve industry experience. You deserve more than a “voice mail” around the consultant ’s office hours – you deserve to speak with someone around your available hours. We stive for courteousy and seek to establish candid working relationships. You deserve a consultant that has a NATIONAL audience of potential buyers. These ingredients will contribute to a pleasant experience with a successful end result for you.

CONSIDER PARKS AND PLACES, INC. FOR YOUR SALE!
We welcome and encourage you to compare what our team at PARKS AND PLACES, INC offers against other marketing firms. If you would like more information on our company and what we can offer you, please contact us!
Call: 616.301.0765 | Email: sales@parksandplaces.com | Fax: 616.301.0764

Find the right business consultant to represent your business



FINDING A BUSINESS CONSULTANT "We encourage you to compare what our team at Parks and Places, Inc. offers against ANY other business marketing consultant."

Report all income and only deduct legitimate expenses

Don’t ask too much or too little for your business

Plan ahead and do not wait too long to get ready

Consider seller financing

Find the right marketing team to represent your business

Ask us what we can do for your business!
Call: 616.301.0765 | Email: sales@parksandplaces.com