in terms of standard industry multiples which means they have unrealistic expectations of the price. In reality, the relative quality of the hospitality property ahs to be taken into account, locations differed maintenance etc,. Owners should understand that value is very significantly affected by the underlying quality of the subject Inn.
A good exit strategy plan starts with the hospitality property evaluating the potential buyers and what will be important to the buyers in question – look at it from the buyers perspective. The Inn needs to be evaluated for its strengths and weaknesses so as to identify which areas to improve in order to attract the potential buyers. This process goes a long way in calculating the worth of the business and by having a good exit strategy, the Inn can improve the probability of its success by coming up with measures designed to increase the entire value of the Inn.
What is the value of my Inn? This is an age-old question that all owners ponder as they consider whether to sell their most important investment. However, the questions they should ask first are: how will buyers go about determining the value of my Inn? And, what can I do to enhance what someone is willing to pay in order to acquire what I have worked so hard to create?
If business owners can view value through the eyes of buyers then they can take action to plan for a successful event down the road.
You can ease the buyers concerns by having sustained cash flow and expenses from previous years. You need a proven track record to demonstrate the Inns’ earning potential. Preferable is three years of business profit & loss statements, along with tax returns to back it up.
Something to think about!
"The hardest part about working together day in and day out is probably the need to stay together in our decision making..."
How to Get the Price You Want For Your Inn
“Do your homework before setting a price for your Inn. Settling on an offering price shouldn’t be done lightly. Once you’ve set your price, you’ve told buyers the absolute maximum they have to pay for your Inn, but if pricing is too high it’s as dangerous as pricing too low.”
For Full Report go to HOWTOGETTHEPRICEYOUWANT.INFO
Pattie Detwiler, Consultant/Realtor
Bed and Breakfast Consultant Service
561.223.3201
Berkshire Amenities Group Inc. offers a curated collection of exquisite towels, bathrobes, fine linens and other quality comforts to B&Bs and Country Inns & Boutique Hotels. Get to know us. Request a free quote.
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