Exit Planning Techniques By Market
Selling a Family Resort
Unfortunately, many sellers are waiting to list their family resorts until the economy fully rebounds. We think that's a mistake because for the right buyers, family resorts are a great investment.
You survived all the ups and downs of owning a business. Next, you'll need to prepare yourself to address the rigors of selling a family resort.
The economy hasn't squashed the market for family resorts. And the ones that are commanding the highest price tags are the ones with sellers who are committed to the sale process.
Sale Costs
In a family resort sale, pricing is based on a number of factors, including the costs incurred during the sale. Good brokerage takes a 10% success fee off the top of the final sale price. Attorneys, accountants and appraisers work for a flat fee that can range from hundreds to thousands of dollars. Furthermore, your time has value, so you may need to include a personal compensation consideration in your expense estimates.
Preparing Your Family Resort for Sale
First-time business sellers sometimes don't realize that the success or failure of their sale is determined before it hits the market. Profitable family resort sales begin with a comprehensive strategy that incorporates planning, preparation and market positioning. Branding, market positioning, and revenue growth take time, but they directly influence the price your family resort will command in the marketplace. It is especially helpful if your financial reports can demonstrate a multiyear growth trend for potential buyers.
Selling to a Family Member
Selling a business to a family member might sound like the best of both worlds. You get an exit strategy, your family resort stays in the family, and everyone is happy. Yeah, right. In fact, selling your family resort to a family member can quickly become a no-win proposition. Unless you have agreed to treat the family member like any other buyer, the risk of hard feelings among other potential heirs or family members is high. If possible, discuss a long-term, generational transition with the entire family and seek the advice of a professional consultant.
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