Allow Us To Help You Buy Or Sell A Marina
Whether you are buying or selling a marina or commercial waterfront property, that’s our passion, so we’re here to help.
For Sellers, we can list your marina through the public marketing process which uses our list of contacts plus the full complement of the internet and other marketing services.
Or we can list your marina privately, where we market your property to an exclusive list of buyers.
For buyers, we have access to the full list of properties on the market as well as contacts for off-market properties. Give us a call to discuss how we can help you find your ideal property.
Thoughts On Selling A Marina
There are two ways to go about selling a marina. Through the public marketing process in which we try to reach the largest possible audience using a wide variety of marketing resources. The intent of this process is to create as much interest as possible and thereby maximize your property's value. The second alternative is to market your property confidentially to known marina buyers and select investors. The intent of this alternative is to minimize the potential disruption to your ongoing business. When selling a marina, there are several considerations that will impact the value of your property. The most obvious of these is the condition of the physical improvements and the condition of your operating equipment. Any valuation analysis has to take into consideration both the physical improvements and also the income stream.
Any buyer will look carefully for deferred maintenance and required replacements and calculate that into their offer.
A buyer’s projected cost for these repairs will almost always be higher than your actual costs. Any attempt to cover deferred maintenance will usually be a red flag to look harder for additional items.
The next consideration is what is your properties competitive position in the immediate marketplace?
Are the services you offer and your pricing competitive with other marinas in the area? Do you fully understand your customer base and why they are your customers? If you intentionally have lower rental rates to stay full, that could be dramatically reducing your total value. A close look at the balance between rates and occupancy could help you increase the bottom line.
The worst way to increase your property value is by cutting expenses. As a percentage of your gross income, expenses you can cut are minimal and an educated buyer will know what the actual expenses should be. The best way to increase your property value is to increase your revenue stream. Increasing your occupancy, increasing your rates, increasing your other sources of income and finding new sources of income will all have a greater impact on your bottom line.
Is there room to grow the business either physically or economically?
A buyer will be looking at the current income stream but also the potential to increase value by adding to that stream. Remember that there is a cost associated with adding any physical improvements and revenue streams. If advance work such as approvals or permits has been obtained, these may have some additional value.
How good is your staff and are they interested in staying?
Your people have a significant impact on the operational efficiency and happiness factor of your customers. The quality of your staff, how well they are trained and cross-trained and do they contribute to your growth are critical factors. A smart buyer will be judging your staff as carefully as your books.
The accuracy of and ability to verify your income and expenses are critical. Some owners may have side income streams that may not be verifiable, these will not help your value. Now might be the time to clean up your books and make as much income verifiable as possible. As a rough comparison, every $100 of income can add $1,000 to the value. The time to think about maximizing your value is before you decide to put your property on the market.
One last item for serious consideration is are you willing to provide some owner financing?
For smaller operations that are not on the target for institutional or investor buyers, some owner financing can enhance your bottom-line value.
Our job is to help you maximize the value of your asset and then find you the best buyer. Work with someone you can trust, give us a call.
Thoughts On Buying A Marina
We maintain an extensive list of operating marinas and boatyards along the Mid-Atlantic seaboard. We can help you by identifying properties that are for sale, analyzing the value of the assets and the operating business, and using our knowledge and skills to negotiate for the best possible deal. We can also target specific properties and confidentially contact the owners to see if they would entertain an offer to purchase.
There are several factors to keep in mind when purchasing a marina or boatyard. The most obvious of these is the physical condition of the improvements and the operating equipment. Any buyer should look carefully for deferred maintenance and required replacements. As a buyer, your projected cost for these repairs will almost always be higher than the current owner’s actual costs for these items. Any attempt by the seller to cover deferred maintenance should be a red flag to look harder for additional items.
What is the properties competitive position in the immediate marketplace?
Are the services they offer and their pricing competitive with other marinas in the area? Do they fully understand their customer base and why they are their customers? This is something you as a buyer should understand. Do they intentionally have lower rental rates to stay full? A close look at the balance between rates and occupancy could help you increase the upside of your purchase.
The worst way for a seller to increase their property value is by cutting expenses. As a percentage of the gross income, expenses that can cut are minimal and as an educated buyer, you should know what the actual expenses should be. The best way to increase the property value is to increase your revenue stream. Intelligent management practices, increasing the occupancy, increasing the rates, increasing other sources of income, and finding new sources of income will all have a greater impact on the projected bottom line.
Is there room to grow the business either physically or economically?
As the buyer, you will be looking at the current income stream but also the potential to increase value by adding to that stream. Remember that there is a cost associated with adding any physical improvements and revenue streams. If advance work such as approvals or permits has been obtained, these may have some additional value.
How good is the staff and are they interested in staying? The current staff has a significant impact on the operational efficiency and happiness factor of the existing customers. The quality of the staff, how well they are trained and cross-trained and do they contribute to the growth are critical factors. A smart buyer will be judging the staff as carefully as the books.
The accuracy of and ability to verify the income and expenses are critical.
Some owners may have side income streams that may not be verifiable. If these are not verifiable they should not be added to and help their bottom-line value.
Our job is to help you maximize the potential value of your asset purchase and buying it right is the first step. Work with someone you can trust, give us a call.
