Choosing the Right Broker to Sell Your Marina
When the time comes to put up your marina for sale finding a marina broker that is capable of advising you through the process can be a daunting task. Finding a knowledgeable marina broker is a crucial step in ensuring that you maximize your proceeds and minimize the hassle through these very complex transactions. Let’s assume you’ve made a short list of candidates you think may be up for the challenge. Now what? How do you narrow the search? How can you be sure the broker you’ve selected is the one that will maximize the value of your marina? The goal of this article is to arm you with some important questions to ask both yourself and your broker as work through the interview process. As you receive the answers to these important questions, you should have enough information to make a confident choice.
- What is the broker’s track record in the marina industry? Of course every broker will have some sort of broad claims to this question. So that’s why you need to dig deeper here. What companies have they worked with in the marina space? Ask the brokers for a list of references that can speak to their personal experience in working with this broker. Are they familiar with all facets of the transaction (financing, acquisition, disposition, etc.)? Most importantly, ask the broker for specifics on deals they’ve recently worked on within the marina space.
- What is their company platform? Is this broker a one man band advertising marinas for sale or do they actually work for a reputable firm that will put a team on the field for you? This is extremely important when comparing the value a broker can add to your transaction. The broker’s access to resources and a strong brokerage team will have a direct correlation to the broker’s ability to create a market for your marina and successfully manage the process to a close. Ask each broker to walk you through their team structure and their firm platform and how they plan to utilize those resources on your behalf.
- What is their marketing plan/process? Ask each broker to walk you through their marketing process for your specific asset. Are they planning on being proactive in their approach (direct to principal meetings/calls) or are they planning to just put the deal on the internet as marinas for sale and hope for the best? Does the broker have specific examples of deals in which their marketing process created real value for their clients?
- How did they arrive at the price? There are several marina brokers out there that can’t answer this question. Naturally, some brokers will try to put a large number on paper to win your business. However, a big number on a page may look good but doesn’t sell deals and, if anything, it will discourage real buyers from taking a real interest in your deal. Ask the broker to walk you through their pricing strategy, where they got the information for their competitive sales, any adjustments they made to the financials, etc. See if the broker can defend the price they put down on paper and if they really have a methodology. If you aren’t satisfied with the answers, what makes you think they can defend that number to a real buyer that is trying to find ways to devalue your property?
- Do they have TLC? Finally, you should ask yourself does this broker have “TLC”. Do you trust them? Do you like them? Do they have credibility in the market?
The bottom line is you need to choose a marina broker that you feel comfortable with and are confident will fight for you throughout the process of a marina for sale transaction. The capability of brokers to either answer or not answer these important questions should give you some real insight into which brokers are wasting your time and the marina brokers that can truly impact the process. Hopefully, when the time comes to put up your marina for sale you can utilize these questions to make the right choice and find the marina broker the will ensure you sell your marina for the highest net proceeds the market will bear.
Published October 14, 2016