Exit Planning Strategies
Selling a Vacation Rentals Business
It's a misconception that no one is buying vacation rentals businesses these days. Savvy entrepreneurs see vacation rentals business opportunities as a path to short-term profits and long-term growth. Here's what you need to know to get a fair price for your company.
Economic data is scary stuff for small business owners. But quarterly data dumps don't impact vacation rentals business sales nearly as much as sale strategy.
If your exit strategy involves selling a vacation rentals business now, sellers need to make a strong case for buyers to purchase at or near the asking price.
Realistic Expectations
Emotions run high during the sale of a vacation rentals business. Your estimate of your company's worth is probably skewed by your emotions and your close, personal connection to the business. It is difficult for many owners to accept the cold, hard facts about their company's worth, but objectivity is the name of the game in a successful vacation rentals business sale. Consider recruiting a team of objective professionals to help manage your expectations as you prepare and negotiate the sale of your business.
How to Skillfully Address Buyer Concerns
Business sellers sometimes struggle to maintain a positive attitude when dealing with buyers. The questions vacation rentals business ask during due diligence are designed to alleviate their concerns about the business and should be promptly addressed by the seller. Avoid answering buyer concerns with vague generalities. Instead, be as specific as possible, even if it means doing additional research before offering a response. Refer to the Letter of Intent to determine how to wrap up due diligence and move the buyer on to closing.
Sale Costs
The calculation of your asking price should include a buffer to cover the expense of the sale process. Good brokerage takes a 10% success fee off the top of the final sale price. Professional consultations can also represent a significant expense during the course of a vacation rentals business sale. Furthermore, your time has value, so you may need to include a personal compensation consideration in your expense estimates.
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