BUYING A CARAVAN PARK IN AUSTRALIA?
The Right Caravan Park Could Change Your Future. Make Sure the Numbers Work Before You Commit.
Buying a caravan park can mean owning your own business, building an asset and creating a completely different future for you and your family.
But finding the right park is only part of the decision.
You need to understand what you’re buying, what the business can realistically earn, how the purchase could be funded and whether the entire opportunity works for you.
From assessing the business and reviewing the numbers to structuring and financing the purchase, we’ll help you work through the decision before you commit.
Is Owning a Caravan Park Part of the Future You're Working Towards?
Maybe you’ve been thinking about it for years.
A business of your own. A lifestyle change. A move to a different part of Australia. An asset you can build over time.
Then you start looking at parks for sale and suddenly the idea becomes real.
Leasehold or freehold?
Tourist, annual, permanent or residential?
How much can you afford to borrow?
What profit can you actually rely on?
How much working capital will you need?
And is this particular park really worth what you're being asked to pay?
You don’t need to know all the answers before you start looking.
You need the right people helping you ask the right questions.
What Are You Actually Buying?
One of the first decisions is whether you’re considering a Leasehold Caravan Park Business or a Freehold Going Concern.
Leasehold Caravan Park
You’re buying the operating business, plant and equipment, goodwill and the right to occupy the property under the lease – but not the underlying land.
The lease itself therefore becomes critical.
Its remaining term, rent, conditions, responsibilities for repairs and maintenance and future capital requirements can all affect the economics and future value of the business.
Freehold Going Concern
You’re purchasing the operating business together with the underlying land and buildings.
That means significantly more capital may be required, but you’re acquiring both the accommodation business and the property on which it operates.
Neither is Automatically the Right Answer
The right option depends on your available equity, borrowing capacity, goals, experience and the economics of the particular park.
A Caravan Park Isn't Just Property. It's a Business With Multiple Moving Parts.
A park can have tourists, annuals, permanent residents, cabins, powered sites, unpowered sites and other income streams.
Understanding that mix matters.
Occupancy & Tariffs
How are sites and cabins performing across peak and off-peak periods?
Are current tariffs sustainable and is there genuine room for growth?
Revenue Mix
Where does the income actually come from tourists, annuals, permanents, cabins or other activities and how dependable is each component?
Adjusted Profits
What does the business really earn after testing vendor adjustments and add-backs?
Operating Costs
What will wages, utilities, repairs, maintenance and other significant expenses look like under your ownership?
Lease & Rent
For a leasehold park, how do the rent, lease term and lease obligations affect sustainable earnings?
Future Capital
Will cabins, amenities, plant, infrastructure or other facilities require significant expenditure after you take over?
Understanding these drivers helps turn the sales figures into a much clearer picture of the business you’re actually considering.
Rogerson Kenny Business Accountants
Caravan Park Finance & Advisory Specialists
Hundreds of caravan park owners advised
50 years in business
Accounting and finance expertise under one roof
Specialist support for caravan park buyers Australia-wide
Before You Find the Perfect Park, Understand What You Can Fund.
Finding a caravan park you love and then discovering the finance doesn’t work is the wrong way around.
Get us involved early.
Our accounting and commercial finance teams can help you understand your position before you get too far into the search.
That includes considering your available equity, the type of park you’re looking to purchase, its financial performance, likely borrowing requirements and the working capital you’ll need after settlement.
Because funding a caravan park purchase isn’t necessarily just about finding the purchase price.
You may also need to consider stamp duty, professional costs, working capital and future investment in cabins, plant, equipment or improvements.
The question isn’t simply:
“How much will the bank lend me?”
It’s:
“Can I fund this purchase and have enough capacity to operate and grow the park after settlement?”
Caravan Park Finance Isn't Standard Commercial Lending.
Leasehold businesses and freehold going concerns can present very different lending propositions.
A lender may need to understand:
Security
What supports the proposed lending?
Equity
How much are you contributing to the transaction?
Cashflow
Can the park generate enough sustainable cash to service the debt?
Management
Do you have the experience and plan to successfully operate the business?
The lender may also consider the lease, historical and forecast financial performance, your plans for the park and the overall quality of the transaction.
That’s where our accounting and commercial finance capabilities come together.
We understand the business financials and how the acquisition needs to be presented from a lending perspective.
One specialist team. One transaction.
Found a Caravan Park You Like? Now Test the Deal.
Once you’ve found a serious opportunity, the question changes.
It’s no longer simply:
“Could I buy this park?”
It becomes:
“Should I buy this one?”
Our financial due diligence goes beyond accepting the headline turnover and profit presented for sale.
We can test reported income, examine BAS and bank records, review significant expenses and assess adjusted profit to help determine whether the financial performance being presented is supported by the underlying information.
And because we’ve worked with caravan park owners for more than 30 years, we understand the numbers in the context of the industry.
From First Search to Settlement
Step 01 - Understand your position
Goals, available equity, borrowing position and the type of park you’re considering.
Step 02 - Find the opportunity
Understand the different park models and what to look for.
Step 03 - Assess the numbers
Revenue mix, occupancy, tariffs, adjusted profit, expenses and future requirements.
Step 04 - Review the deal
Undertake financial due diligence before committing.
Step 05 - Secure the finance
Prepare and present the transaction to appropriate lenders.
Step 06 - Structure and Settle
Work alongside the legal and professional advisers involved in the transaction.
Step 07 - Run and grow
Continue with specialist accounting, tax, finance and business advice after settlement.
You Need Advisers Who Understand Caravan Park Numbers.
A caravan park isn’t a standard small business and it isn’t simply commercial property.
The revenue mix, seasonality, occupancy, tariffs, lease terms, land, infrastructure, capital expenditure and the way profit has been calculated can all affect the economics of the purchase.
We’ve worked with caravan park owners for more than 30 years.
We’ve seen how these businesses operate, how their numbers move and the questions that matter when someone is considering buying one.
Our role is to bring the pieces together.
We’re not simply looking at whether you can get a loan.
We’re helping you understand what you’re buying, what the business can support and how the acquisition could be funded.
Thinking Seriously About Buying a Caravan Park?
You don’t need to wait until you’ve found the perfect park to talk to us.
In fact, getting us involved earlier can help you understand what you should be looking for, what you may be able to fund and what needs to stack up before you make an offer.
Already found a park you’re interested in?
Even better.
Tell us where you’re up to and let’s start working through it.
You bring us the opportunity.
We’ll help you understand the numbers behind it and how the purchase could be funded.
You don’t need to have everything worked out before you call us. That’s what the first conversation is for.
Thinking Seriously About A Caravan Park Purchase?
Book a confidential review with a specialist team who understands caravan parks, finance structures and acquisition risks.