Selling an RV park is one of the most significant decisions an owner can make. Traditionally, owners face the challenge of finding a buyer, negotiating price and terms, and walking away with a lump sum — all while hoping the new owner is the right fit. But what if there were a better way?
For some owners, the idea of an outright sale might feels too sudden. It’s a “cold turkey” exit that severs all ties with the park — and that can be a tough pill to swallow. What if you’re not ready to fully let go? What if there are aspects of park ownership you actually enjoy, like welcoming guests or overseeing events, but other parts, like administration or maintenance, you’d rather leave behind? And what if you’re worried about what comes next — the risk of boredom, the loss of purpose, or a sudden shift in daily routine?
What if there was another, less extreme option? Imagine a process where ownership is transferred gradually, on your timeline, and on your terms. This approach — often called a Phased Buyout — can be an ideal structure for certain RV park owners seeking a succession plan. Rather than an abrupt exit, this method allows park owners to remain involved (should they choose to), benefit from future growth, and ensure a smoother transition for staff and customers. It can be a win-win for everyone.
How It Works: The Phased Buyout
The process of a Phased Buyout is simple but strategic. Here’s how it works:
Instead of selling the park in one go, ownership transfers happen gradually. The new owner takes on increasing responsibility and equity as performance targets are met or certain timelines are reached. For instance, you might transfer 20% ownership per year for five years or 25% ownership each year for three years. Alternatively, you could retain partial ownership indefinitely, keeping an ongoing 10-50% stake. This approach allows you to stay connected to the business and benefit from its future growth.
Creative Structures & Options
There’s no “one-size-fits-all” approach. Sellers have full control over how the transfer is structured, offering endless customization possibilities. Here are some additional creative ideas to structure the deal:
- Ownership with Milestone Triggers: Ownership could transfer automatically when certain operational goals are met, such as achieving a specific occupancy rate, profit margin, or revenue target.
- Phased Buyout with Fixed Price Increases: Ownership transfers incrementally, but the price increases with each tranche. For example, the first 20% could be purchased at a $3M valuation, the next 20% at $3.25M, and the final 20% at $3.5M.
- Warrant-Based Structures: Similar to above, another creative option is to grant the buyer “warrants” — the right (but not obligation) to purchase additional ownership stakes at pre-agreed valuation milestones. For example, the buyer could have the option to purchase 20% at a $3M valuation, another 20% at a $3.25M valuation, and another 20% at a $3.5M valuation. This structure incentivizes the buyer to increase the park’s value, as they only profit from exercising the warrants if the park’s valuation exceeds these targets. The seller benefits from a higher sale price, while the buyer is motivated to grow the business.
- Option to Retain Ownership Indefinitely: Instead of selling 100%, you could stay in as a partner with a 10-50% equity stake indefinitely.
- “Put/Call Option” Flexibility: This would grant the buyer or seller the right to “put” (force a sale) of all/some of their interest to the other party, and similarly, the right to “call” (trigger a purchase) all/some of the other party’s interest in the property. The terms (price, timeline, process, etc) would need to agreed as part of the options.
- Custom Payment Schedules: Ownership could be purchased with varying payment schedules, like 50% upfront and 50% after two years, or a more gradual timeline like 20% per year for 5 years.
- Performance-Linked Ownership: Ownership percentages increase based on business performance (like an increase in NOI, total bookings, or gross revenue). This allows sellers to benefit from operational upside while ensuring the buyer is properly incentivized to grow the business.
By using a phased buyout and incorporating any of the creative structures mentioned, sellers can achieve a smoother exit, maintain ongoing cash flow, and ensure the park is in good hands for the future.
When Is This Approach Most Appropriate?
This modern sales strategy isn’t for everyone, but it’s ideal for specific types of RV park owners. If any of the following apply to you, a Phased Buyout could be the perfect fit:
You’re Not Ready to Fully Retire: Some owners still have the energy, passion, and knowledge to be involved in the business but want to start planning their exit. This method allows them to step back gradually.
Uncertain Retirement Plans: If you’re unsure about retiring fully or worry about boredom in retirement, a gradual exit keeps you involved and engaged while still freeing up time.
You Want to Stay Involved But Reduce Responsibility: By maintaining a role as an advisor or mentor, sellers can reduce their daily workload while still being part of the park’s growth story. Sellers can continue doing what they love most — maybe it’s guest relations, events, or community engagement — while handing off the parts they enjoy least, like accounting, marketing, or maintenance.
You Want to Maximize Earnings from the Sale: A traditional sale locks in a price on closing day. But a phased approach can allow sellers to benefit from the upside of future growth. If the park’s performance improves (whether due to operational changes, expansion, or new marketing efforts), sellers stand to earn more when ownership transfers are tied to performance-based metrics.
Passive Investors/Partners Want to Sell: If your partners or passive investors want to cash out, but you’re not ready to sell the entire park, you can facilitate a gradual buyout of their shares while maintaining control.
You Want to Avoid Selling to the Wrong Buyer: With a traditional sale, you’re gambling that the new owner will be the right fit. But a gradual transition allows you to “test” the buyer’s abilities and commitment before they become the full owner. It’s a great way to protect your park’s legacy. Using call options mentioned above can be a way to buy back the park after working with the buyer if you feel they are not the right fit.
If you fall into any of these categories, this approach offers a tailored, thoughtful exit strategy that benefits both buyer and seller.
The Key Benefits for RV Park Owners
This sales strategy offers advantages that traditional deals simply can’t match. Here’s why it works so well for sellers:
Keep Doing What You Enjoy: Owners can stay involved in the aspects of the business they love most. Want to focus on customer experience, but leave bookkeeping to someone else? This strategy makes that possible.
Avoid Burnout while Staying Sharp: Selling cold turkey can feel like driving off a cliff. Many owners find satisfaction in having something to keep them active, sharp, and engaged through their later years. A phased approach keeps you mentally and emotionally connected — on your terms.
Test the Buyer: Before you hand over full control, you’ll have a chance to see if the buyer is a good fit. If they aren’t, you retain ownership, reducing the risk of selling to the wrong person.
Potential for a Higher Sale Price: If you tie the buyout to performance metrics, you stand to earn more than you would from a traditional sale. For instance, if you only transfer ownership as revenue or profit increases, you share in the upside.
More Hands on Deck: More people involved means more focus. If you and the buyer divide responsibilities according to what each person does best, the RV park thrives. With the right partner, you can achieve more than you would alone.
Steady Cash Flow: By structuring the sale over time, owners receive ongoing payments rather than a single lump sum. Payments can come from profits, performance payouts, or share buybacks, creating a continuous income stream. This could prove to be more tax-efficient for you as well.
Transition Support: Ensuring Continuity and Smooth Handover
Transition periods can be delicate. Staff need reassurance, customers expect consistency, and the park’s operations must stay steady. In a Phased Buyout, transition support is built into the process.
The structure of the arrangement clearly defines who is responsible for what — and when. For instance:
- The buyer may take over certain duties, like marketing and reservations, in Year 1.
- By Year 2, they might handle hiring and staffing.
- The seller might remain in charge of guest relations and key vendor relationships throughout the transition.
This built-in transition support benefits everyone:
For the Seller: They get to see how well the buyer performs before finalizing the sale.
For the Buyer: They receive guidance from an experienced operator, reducing costly mistakes.
For the Customers and Staff: There’s continuity of service, which builds trust and maintains customer loyalty.
Attracting Better Buyers
The most ambitious and capable buyers often face one key challenge: capital constraints. While they have the vision, energy, and skills to run an RV park, they may not have the funds for a traditional purchase. A Phased Buyout solves that problem.
Build Up the Down Payment Over Time: Since ownership transfers gradually, buyers can use park profits to fund future buyouts. For example, a buyer may not have a down payment today, but they can use park profits from their current ownership to purchase future installments, or build up the savings elsewhere.
Aligned Interests: Buyers have clear incentives to perform. They know that hitting growth targets can unlock their next ownership stake, so they are highly motivated to drive success.
Bigger Buyer Pool: Without the need for large upfront capital, more qualified buyers can afford to participate in a buyout.
For sellers, this means access to more qualified buyers and the chance to work with the most driven operators.
Building Trust Before a Full Sale
One of the biggest concerns park owners have when selling is trust. Will the buyer run the park properly? Will they respect the staff and customers? The Phased Buyout model allows for a “trust-building phase.”
Over time, you get to watch the buyer’s actions and decisions. Are they keeping the park clean? Are they improving customer service? Are they meeting financial targets? If the buyer is doing everything right, you can feel confident handing over full control.
If they fall short, you can retain or regain control, avoiding the risk of selling to the wrong person or group.
The Perfect Solution for Succession Planning
Succession planning can be complicated, especially when family isn’t available to take over. This approach lets you plan early, start slowly, and secure your future. By doing so, you avoid the stress of rushed sales and can step away on your timeline.
Final Thoughts
Selling an RV park doesn’t have to be a one-time, all-or-nothing event. A Phased Buyout offers a smarter, safer, and more profitable path. By customizing the process, sellers can create alignment, maximize their returns, and maintain their legacy.
If you’re thinking about succession planning, a Phased Buyout could be your best option. Stay involved. Stay in control. Sell on your terms.