On today’s episode, we’ll be diving into the topic of MHP Succession Planning. This refers to the options park owners have for passing their properties down to their children. This is of special importance to the “mom and pop” park owners. As we know all too well, they’ve worked hard get their park’s to a successful state.
Also, time spent in the field can be filled with emotional attachments, equity, and memories. This goes for both the park owners, and their children, who likely spent a great deal of their As such, they should be rewarded for their efforts in a way that impacts their legacy. The next best step is being able to continue the tradition with loved ones interested in the space.
First, it’s good to point out that you may not find yourself in a place where you want to continue the legacy. Maybe your children aren’t interested, or you might not see any value in keeping your stake in the industry. That’s a reasonable place to be in, given the fluctuating state of the economy.
These positions tend to vary based on the age group that the owner is in. As I note in the clip, my oldest client has managed the accomplishment of reaching 93 years of age! While a younger owner may see themselves lasting a few more decades in the business, an older one may feel ready to call it quits. The key to solid MHP Succession planning is recognizing the true value of the situation. You’ll want to weigh things out from an informed and intentional perspective.
One of the biggest pitfalls you want to avoid is making a decision based on FOMO, or a fear of missing out. Yes, your current standing in the MHP space may be chocked full of difficulties. But, that doesn’t necessarily mean that the grass is greener on the other side.
If you don’t have a suitable back up plan for what’s next, it may be well worth it to wait things out for something more concrete. Try laying out some specific goals that pique your interests. From here, again, you’ll want to be intentional about finding a viable solution before making any drastic decisions.
Let’s take a look at the current state of the industry. If you’re sitting on a park in a worthwhile locale, and can commit another 5 years to a decade in the space, selling may not be your best option. Also, keep in mind you’ll have factors like taxes that stand to impact your overall takeaway should you choose to sell.
For example, let’s say your park is pulling in about a million a year in revenue. If you’re hoping to pull in upwards of $20million in a sale, the current interest rates may put a damper on that desire. That’s not to say that all hope is lost for quick exit. Listen above to my breakdown of a situation where you’d come out on top.
Be sure to check out the rest of today’s episode in the clip above! And for any other questions regarding how The MHP Expert can help, check out our services page to learn more!