Location will Drive Value
Location is one of the most important factors that investors will consider. In particular, properties situated in healthy boating markets, growing population centers, and rising home values are considered more attractive.
Size and Scale
Bigger marinas generally mean more boat slips, or dry racks, which drives higher revenues and profit. This directly drives investor valuation.
Infrastructure and Deferred Maintenance
During their diligence, investors will carefully examine docks, seawalls, buildings, and mechanical systems to identify maintenance requirements after you hand them the keys. They will likely send specialized marine engineers to conduct a review of underwater structures and potentially undertake bathymetric analysis. Properties requiring significant renovation or remediation will receive a reduced valuation to account for the investor’s capital costs post-closing.
Financial Deliverables
Investors will generally require several years of your profit and loss statements, your current rent roll, and historical tax returns. Sign an NDA with prospective purchasers first and then make your life easier by sharing this information.
Plan Your Staffing
Investors care about your people more than you think. They’ll want to understand who is running the marina after your departure. They may even ask for you to help with the transition. Be prepared to share the details of your team, their current compensation levels, and who you view as the future leaders of the team. Good people and staff are difficult to find so if you have them on your staff, its important to think of that as an asset and highlight it to prospective purchasers.
Preparing Your Marina for Sale
Selling your marina is probably one of the biggest decisions you’ll make. Proper preparation is crucial to ensuring a great outcome for you and your family.
Want to see what a marina might be worth? Try our Marina Valuation calculator or talk to one of our investment specialists.