Your First 10 Steps in Buying a Marina
- Find an experienced marina broker to discuss your needs and wants of a marina acquisition.
- The costs to purchase a marina: have a set goal of what you do not want to exceed, with the criteria you are looking for in a marina acquisition.
- Obtain a preliminary pre-approval letter from your lending source.
- Decide a location / market for your purchase / do you want a freshwater or saltwater marina? (At this time the broker will start putting marinas in front of you.)
- Know the market of where you are buying / look at the existing clientele of your possible marina purchase.
- Examine all infrastructure & look at all deferred maintenance / equipment. (See what kind of costs one would incur.)
- Have broker obtain 3-4 years of financials & (SDE) Sellers Discretionary Earnings ( At NG&M Properties we have all marinas underwritten for our buyers.)
- Look for upsides to grow business, short term & long term.
- Does the business have staff in place & does the business have management software? (if so, is it current / up to date or is it obsolete?) Does the property have good internet?
- Do a complete (DD) Due Diligence period with your broker. Trust your broker let them negotiate the best deal for you.
Your First 10 Steps in Selling a Marina
- Have an exit strategy.
- Consult with financial advisor on possible proceeds of sale.
- Consult / interview with an experienced marina broker. Have broker supply you with references, sign a confidentiality agreement with the broker.
- Know why you are selling / share with the broker reasons why good & bad.
- Do a walk through of property and business, share all with broker. Leases / equipment lists / financials / employee list / POS systems / deferred maintenance / insurance / claims / lawsuits etc.
- Get broker’s opinion of value.
- Decide if this is a confidential listing or not.
- Decide if you are letting employees / clients & vendors know of the sale?
- Decide how you are going to assist in the acquisition to ensure support for new ownership.
- Let broker do their job, work with broker during the entire acquisition.
Nobody knows the property & business better than the sellers.