- November 4, 2018
- Posted by: Ben Edwards
- Category: Blog, Resources
Where We’ve Been and What We Can Expect Going Forward
As we begin another new year in the Vacation Rental Industry, numerous changes abound. These changes continue to take similar form from years past. Some of the most impactful changes range from distribution terms to legislative concerns to increased industry awareness precipitating new entrants to the space. These changes are forcing company owners and managers to operate more progressively in an effort to sustain prior year operating profits.
These changes also present a decision point for many company owners. This decision is leading many owners to capitalize on the sale of their business. These industry changes have generated a number of sales in the vacation rental space and we expect this trend to continue as these changes continue within the industry. While these changes precipitate a number of sales annually, many company owners see an opportunity to profit.
No matter the rationale for capitalizing on the sale, selling a vacation rental business presents owners with a viable and lucrative opportunity to exit the business. The single largest issue we continue to see throughout the industry is the lack of knowledge surrounding the sale process. If, as a vacation rental company owner, you are relying on a prospective buyer to provide access to market rate deal terms and transaction norms you may be at a disadvantage.
We can certainly expect the merger and acquisition volume to continue to heat up. There are plenty of buyers in the industry searching for quality businesses. Market rate terms and transaction protocols exist and represent a fair and reasonable deal process. As the opportunity of a sale presents itself, it is imperative to research the process to ensure a successful transaction. Prior preparation and diligence will guarantee you financial success when selling your business, as well as provide for your employees and owners.