Due Diligence for Buyers

Due diligence is a critical yet often over-looked or hastily implemented step in the park purchasing process. David Gorin & Associates has an established due diligence process and program that can provide a high level of comfort and assurance to buyers of RV parks and campgrounds.

A carefully executed due diligence program is especially important for newcomers to the park industry. While many commercial park brokers can offer assistance and insights into a proposed park acquisition, anyone who is a novice in the park business is well-advised to engage the services of a qualified expert to assist in the due diligence process.

An expert can help the prospective buyer analyze and assess the financial information, the park operations, existing business, the physical facilities and marketing programs. Equally important, the expert can help locate qualified inspection personnel who know the park business and can interpret utility inspections that are so critical and often not understood by buyers.

Due diligence includes a thorough analysis of the existing zoning, permitting and licensing of the proposed campground acquisition and can assess the future impact of comprehensive land planning and zoning in the area. In many cases, a change of ownership can trigger a change in zoning and permit conditions that need to be carefully and thoroughly considered prior to acquisition.

Due diligence is not a substitute for sound legal advice in the purchase contract. But a good due diligence process will enable the attorney to include necessary protections and contingencies that can be extremely valuable before and after the purchase is completed.