There are several reasons why you may require a valuation of your caravan park or leisure business. You may require a valuation for a specific purpose, or it may be you just want to review your current position and understand the value of your business. Our valuation team is always available to discuss your requirements and guide you depending on your circumstances.
Valuations can be prepared for a variety of reasons including loan security, taxation purposes, internal information purposes, dispute resolution, accounting purposes or as pre-acquisition or disposal advice.
Whatever the purpose of the valuation, if the business is open and trading, the valuation methodology should be similar. Valuations of caravan parks and leisure businesses consider the land and property as being intrinsic to the trading business, and as such the valuation will be completed using the profits method of valuation. The valuer will need to review and analyse the businesses trading performance and there are specific operational factors which will need to be considered.
The methodology relies on the valuer’s knowledge, understanding and judgement of the particular market or sector. Valuers are required to consider how the historic trading performance sits in comparison to similar businesses and how it is likely to fare in the future. An in-depth market knowledge is required to make such judgements and the valuer’s experience in the particular market is paramount, and could not be more important than now with economic pressures on trading performance.
Savills Leisure & Trade team hold this in-depth knowledge and understanding of the caravan park and leisure market, and are ideally placed to provide valuation services to either you or your lender.
We are instructed by lenders, operators, private equity funds and individuals. During the course of 2020 we undertook c.100 caravan park valuations and at H1 2021 we have undertaken c.40 caravan park valuations with a combined value of c.£500m.