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Sports and business have unlimited comparisons. The obvious similarities are team work, focus and a desire to win. When playing a ballgame the scoreboard clearly depicts the winner and the loser. However, success in a vacation rental business is often difficult to discern.

When you have an offer on the table for your vacation rental management company, the price tag jumps off the page. It is especially distracting if the price is higher than you had hoped. Your hard work has paid off, and you want to close the deal as quickly as possible.

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.

As I write this column, our neighbors to the east located in Panama City and Mexico Beach Florida have incurred probably the worst natural disaster we’ve seen along Florida’s Northwest Gulf coast in my lifetime. Numerous homes, families and businesses have suffered tremendously as result of the storm. Hurricanes, wild fires, snow storms and other catastrophic events can materially impair a vacation rental operation or force vacation rental managers to shut their doors if not properly prepared for the impending disaster.

Selling a vacation rental business is one of the largest transactions of one’s career. Vacation rental purchase and sale transactions are now a mainstream exit strategy for vacation rental company owners. Owning, managing and maintaining a vacation rental business is a difficult endeavor. Operating a business requires diligence and focus to successfully propel the business. As vacation rental company owners consider selling their business, the same diligence and focus should be applied to understand the true cost of selling your business.

As the summer slows down, many of us are trying to catch our breath, while other Vacation Rental Manager’s (VRM) are gearing up for peak winter season. No matter whether you’re going into relaxation or ramp up mode, all VRM’s should be thinking about financially preparing your business for 2019. Proactively managing your operation will help increase profit and efficiency in your business.

In many cases, the sale of your vacation rental business will be the largest and most important transaction in your career. Needless to say, it is a material transaction and one that requires patience, knowledge and diligence. Having your eyes wide open is a phrase that is often used when conducting business and nothing could be more true when selling your business. If you are considering an exit, success is determined by a number of factors. Obtaining the maximum purchase price is obviously a primary consideration, but almost equally as important is reducing your risk subsequent to closing. When the business is sold, having contingent risk, or opening yourself up to personal liability is also a strong consideration when choosing the right buyer.

While vacation rental purchase and sale transactions continue to increase throughout the professional management community, vacation rental company owners are being aggressively solicited to selling their business. Vacation rental Company Owners (VRCO) are primarily receiving letters in the mail from larger, more national company’s trolling the industry for willing sellers. These transactions can be successful with proper seller consultation, otherwise sellers are relying on the buyer to provide deal insight, terms and value of the business. As a VRCO, if you’re relying on the buyer to provide this information, expect to be disappointed on multiple levels.

The purchase and sale of vacation rental companies continues to be the most effective way to increase inventory and grow the value of an existing operation. As vacation rental managers consider purchasing or selling an existing operation, we’ve found several areas that are important to consider during this time-consuming and difficult process.