Selling a Recreation Business

Most recreation businesses sell based on the cash an owner can take home each year, with adjustments for owner expenses that are not required to run the business, like a personal vehicle, one-time repairs, or an above-market owner salary. Value moves a lot with seasonality, marketplace reliance, insurance and claims history, and whether the business runs smoothly on peak weekends without the owner. Start with Rejigg’s free valuation calculator, then tighten the estimate by documenting capacity, staffing coverage, and permits.

Seasonality usually does not stop a deal, but it changes how buyers model risk and cash flow. They will look at month-by-month performance, which costs keep running in the slow months, and what happens during bad-weather weeks when cancellations spike. Sellers who can explain the calendar clearly and show how they flex labor and marketing by month tend to get better terms. Use the preparation guide to build a simple monthly story buyers can trust.

Many owners go to market before peak season so a buyer can watch operations, line up financing, and still capture the strongest months after closing. Selling right after peak can also work because the big months are fresh in the numbers, and cash is typically higher. Either way, you want enough lead time for permits, staff training, and hiring plans. On Rejigg, you can control what buyers see and when through the data room, which helps you start early without dumping everything at once.

No. Brokers typically charge 5–10% of the sale price for packaging the business, finding buyers, and running the process, and you can do that yourself with the right tools. Rejigg gives you vetted buyer access, digital NDAs, a secure data room, direct messaging, and offer tracking so you can run a clean broker-free process. Start by listing, then use the finding buyers guide to shape outreach and buyer conversations.

Often, yes, as long as the business has consistent documented cash flow and books that a lender can follow. For recreation, lenders also care about seasonality, insurance renewal risk, claims history, and whether key permits and the lease can transfer. It helps to model payments early so deal terms fit lender rules. Use the SBA loan calculator before you negotiate price and seller financing.

Expect financial statements and tax returns, plus recreation-specific items that explain risk and continuity. That usually includes permits and concession agreements, the lease, insurance policies and a claims summary, waiver language, incident logs, training materials, and an equipment list with maintenance records. Buyers also want booking channel reports from your reservation system and your refund and cancellation history. Rejigg’s due diligence checklist and built-in data room help you organize this without endless repeat requests.

Confidentiality matters because rumors can trigger staff churn, especially right before peak season. Most sellers use staged disclosure: share high-level performance early, then hold back sensitive items like staff names, partner rates, and detailed operational docs until a buyer is serious. On Rejigg, buyers are pre-vetted and sign NDAs digitally before seeing sensitive materials. You also control access document-by-document in the data room, which helps you avoid accidental over-sharing.

Buyers usually treat unredeemed gift cards and prepaid packages as a liability because the business owes future services. Most deals include a count of outstanding balances as of closing and a clear decision on who keeps the cash and who covers the redemptions after the sale. A clean roll-forward removes a lot of friction. If you are not tracking outstanding balances today, tighten it up before you go to market so buyers do not assume the number is larger than it is.

A working capital adjustment is a closing true-up that makes sure the buyer gets a normal level of day-to-day operating resources, like money owed to you, bills you still need to pay, and prepaid expenses. In recreation, deposits and seasonal swings can make the balances look odd at month-end. Many sellers and buyers set a target based on the same month in prior years. Rejigg’s deal tracking keeps this term visible while you negotiate in the negotiation guide.

Most deals do not price every piece of equipment like an auction. Buyers focus on whether the gear supports safe, reliable operations and what replacements are coming soon because downtime creates cancellations and refunds. A clear asset list with purchase dates, major repairs, and expected 12–24-month replacements usually prevents last-minute price cuts. If you run boats, karts, trampolines, inflatables, or VR rigs, expect buyers to ask about inspection routines and vendor support since it affects insurance and uptime.

Seller financing is common, especially when a buyer wants you invested in a smooth handoff through the next peak season. Earnouts also show up, but they can get messy in recreation because weather, staffing shortages, and channel changes can swing results quickly. If you use an earnout, make the metric simple and define what the buyer can change operationally. Rejigg’s offer comparison dashboard lets you line up price, seller note, earnout triggers, and timelines side-by-side.

Many deals take a few months to find and qualify the right buyer, then another month or two for financing, permits, and diligence. Timing depends on how organized your documents are and whether the buyer needs a loan. Recreation deals can also get delayed by insurance underwriting and seasonal schedules. The fastest lever is readiness: clean financials, permit and lease info, an equipment list, and safety documentation packaged up front. Rejigg’s data room cuts the back-and-forth that usually drags out timelines.

A good transition keeps reviews steady and gives staff confidence through at least one busy stretch. That usually means joint weekend openings, a clear handoff of weather-call and refund decisions, introductions to hotel partners and group planners, and transfer of vendor accounts for maintenance and supplies. If your business is seasonal, train before peak, not during it. Use the transitioning guide to map responsibilities week-by-week.

Buyers often ask for a non-compete so you do not open a competing tour, studio, or venue nearby for a set period. Because recreation businesses are local and reputation-driven, the terms should match the real market: the distance, the timeline, and what counts as competing for your specific category. Overly broad restrictions can be hard to live with, and overly narrow ones do not reassure the buyer. Get the main terms written down early so it does not turn into a closing-week fight.

Taxes depend on how the deal is structured and what you are selling, such as equipment and other assets versus ownership in the company. Recreation operators also sometimes have sales tax exposure and gift card tracking issues that affect the numbers buyers rely on. Because taxes can be one of the biggest drivers of what you actually take home, talk to a tax professional before you accept final terms. Rejigg’s deal tracking makes it easier to compare offers once you know the after-tax impact.

In recreation, contingencies around permit transfer, concession approval, or landlord consent are common because they can determine whether the buyer can operate at all. The key is that the contingency has a clear process, a real timeline, and named responsibility for the work. Sellers close faster when they already have renewal cycles, contact names, and a documented approval path. Keep dates and responsibilities tracked during diligence so they do not drift.

Heavy marketplace reliance is not always a deal-killer, but buyers will price the risk of ranking changes, commission increases, or account disruption during peak season. You protect value by showing a working direct engine: repeat guest campaigns, email and SMS lists, hotel and campground partnerships, and review practices that drive direct search. Bring channel economics, too, like fees and cancellation rates by channel, so you control the story with data instead of guesses.

Start by making the books match how your operation actually works. Separate deposits, gift cards, refunds, and chargebacks, and tag major equipment repairs so buyers can see what was one-time versus ongoing. Add simple month-by-month notes for weather impacts and seasonal swings. If you use QuickBooks, Rejigg’s QuickBooks integration can pull financials into a structured data room so you are not rebuilding everything in spreadsheets. Then, follow the prepare-to-sell guide to prioritize what buyers ask for first.