Real Estate-Backed & Location Businesses · Buyer guide
Buying an RV Park & Campground business
Published · Reviewed by The Diligence Standard Team · Updated
an RV Park & Campground can look attractive on a summary P&L while the operating details underneath it change the cash flow, transferability and capital a buyer will actually own. Diligence should connect the reported earnings to the business-specific drivers that create them.
How the business works
Occupancy, site mix, seasonal/annual tenants, utility infrastructure, amenity CapEx and property rights drive value.
Risks to test
- Infrastructure CapEx
- Environmental/septic/water issues
- Seasonality
- Zoning/permits
- Deferred roads/amenities
- Manager dependence
Evidence to request and reconcile
- Reservation/POS data
- Site roster
- Utilities
- Property/zoning
- CapEx history
- Payroll
Decision questions
- What infrastructure needs replacement?
- How seasonal is occupancy?
- What permits/zoning limit expansion?
- Are utilities metered/efficient?
- What manager presence is required?