Matrix’s Outdoor Recreation and Marine Investment Banking Group
William O’Flaherty, Managing Director; Matt Oldhouser, CPA, Vice President;
Jason Keyser, CFA, Analyst; Hayden N. Daniel, Analyst

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Overview

Introduction
Like so many segments of the Outdoor Recreation and Marine industries, 2020 – 2022 saw rapid acceleration in market size as well as M&A transaction volume for RV-focused enterprises. In particular, we observed consolidation throughout the component manufacturing ecosystem, a universe that was largely independently operated in the decades that preceded the pandemic. Still, other segments, including dealerships and campgrounds, accelerated transaction volume and performance, supported by growing consumer demand. The past 24 months brought with it muted transaction volume in the face of stabilizing industry demand and a more challenging macroeconomic environment. While the following report identifies the larger industry trends in the RV space, we will lead off by focusing on the campground and RV park M&A resurgence anticipated in the next 12-24 months.

Campground & RV Park Market Dynamics
After a post-pandemic surge in outdoor recreation, 2023 and 2024 saw a slowdown in transaction volume due to higher borrowing costs, inflationary pressures, and shifting investor sentiment. Many buyers treaded cautiously as rising interest rates made financing acquisitions less attractive, while some sellers held off in hopes of better valuations. Despite these challenges, demand for high-quality RV parks and campgrounds remains strong. Institutional investors, private equity firms, and real estate investment trusts (REITs) continue to view the sector as a compelling long-term play due to its recurring revenue model, high margins, and resilience during economic downturns.

Meaningful consolidators and players of scale include Sun Communities, Inc., Equity LifeStyle Properties, Inc., and Modern American Campgrounds. These entities (and others) are equipped to purchase assets both of scale (multiple sites) or single-site operators. In addition to the numerous established players, “non-traditional” investor interest has grown in recent years, with owner-operators focusing on hotels, self storage or marinas also entering the market. Many of the same underlying business characteristics exist across these markets, with campgrounds viewed as assets with potentially higher returns relative to some other industries.

Source: U.S. Census Bureau

Primary Drivers of Expected Resurgence
Stabilizing Interest Rates
One of the biggest hurdles in 2023-2024 was the Federal Reserve’s aggressive rate hikes, which increased financing costs and reduced deal activity. However, 2025 is expected to bring interest rate stability, or even cuts, making debt financing more attractive for buyers and unlocking pent-up demand for acquisitions.

Strong Consumer Demand for Outdoor Recreation
While RV sales have fluctuated, campground occupancy rates remain robust, driven by younger demographics embracing van life, glamping, and remote work-friendly travel options. The sustained, predictable demand dynamics of the market, supported by backlogs of interest at several prominent locations, creates the predictability that emboldens investors.

Increased Institutional Investment
Larger investment groups are showing continued interest in the space, mirroring trends seen in self-storage and manufactured housing communities. This will create opportunities for smaller operators to exit at attractive multiples, fueling more transactions.

Growth and Diversification of Revenue Streams
Operators have focused on expanding the service offerings on-site in order to capture greater wallet share from its customers. First, groups have targeted ancillary offerings such as seasonal sites, on-site restaurants, pay-to-play family activities, and local excursions to drive a more diversified, creative, and consistent revenue stream. Additionally, the growth trends of seasonal sites at campgrounds across the US have driven strong and predictable revenues for campground operators. New revenue streams have been initiated on many of the seasonal sites with operators creating turnkey tiny home sites resulting in an upfront purchase from the customer followed by monthly or quarterly site rental fees. With greater revenue potential and addressable markets should come broader interest from buyers and investors.

Technology & Operational Efficiencies
The growing adoption of reservation platforms, dynamic pricing models, and digital marketing strategies are making RV parks more profitable, driving further acquisition interest. Investors will seek parks with strong operational infrastructure that can deliver higher yield and returns potential.

Source: IBIS World

Brokers vs. Investment Banks
While consolidation has been occurring in the campground industry for a number of years, the advisory marketplace is still somewhat underdeveloped. Its our observation that many of these transactions are direct deals (where no M&A advisor is engaged and buyers and sellers negotiate directly) or a more real estate-focused, broker-like individual or small organization is engaged in an advisory capacity. While clearly there are successful outcomes in the marketplace, we view the current structure as potentially undervaluing the entities being sold.

Unlike traditional brokers, who often focus primarily on the land and physical assets, investment banks take a more comprehensive approach, valuing not just the property but also the underlying business, revenue streams, and future growth potential.

This broader perspective enables investment banks to attract institutional buyers, private equity firms, and strategic investors willing to pay a premium for a well-positioned campground operation. Additionally, investment banks offer sophisticated financial modeling, deal structuring, and negotiation expertise, ensuring sellers maximize their return while navigating complex transaction dynamics. While real estate-minded brokers may be effective for straightforward property sales, investment banks provide a higher level of strategic insight and market access, making them the superior choice for owners looking to optimize the value of their business. We view this advisory shift as inevitable in the marketplace as buyer sophistication, interest, and overall valuations increase.

Source: 2022 RVIA Campground Market Analysis

Final Observations
After a challenging period for M&A, 2025 is poised for a breakout year for campground and RV park transactions. Most independent operators are confronting the question of “grow or go” as professionalization of the industry has hit the marketplace and competition from large, national campground operators has impacted their ability to consistently book their sites. Those operators either unwilling or unable to invest in the technology and infrastructure to support competitive operations will find themselves left behind. The logical landing spot for many of these entrepreneurs will be sales to larger and well-capitalized groups that can yield operational efficiencies from scale.

Needless to say, this is not the only area where we see near-term consolidation, but one that we feel is often overlooked and ripe for accelerated transaction volume. As we examine the broader RV landscape, we note that vehicle manufacturers looking to differentiate themselves through innovative offerings on their units are likely to continue to consolidate component manufacturers.  This logical M&A activity gives the RV manufacturers improved margins, predictable budgeting, and the ability to offer the acquired component lines exclusively, giving an edge in an increasingly competitive marketplace.

State of Recreational Vehicles – Key Industry Data

Key Recreational Vehicles Macroeconomic and Demographic Indicators

Source: Federal Reserve Economic Data

Operational Indicators and Measurements

Higher inventory levels at dealers, paired with a significant increase in used RV inventory from those who traded out of the hobby post-pandemic, created uncertainty around new unit demand and impacted used asset values.

Source: RVIA; Capital IQ; U.S. Census Bureau; RV News

Market Data & Updates

Market Valuation & Performance

After a stronger past 12 months than many anticipated, steady growth is expected in 2025.

Source: CapitalIQ

Recreational Vehicles Public Trading Group

Source: CapitalIQ as of January 17, 2024

Key Recent Transactions / Deal Spotlight

Acquisition Spotlight: Patrick Industries Acquires RecPro

Sources: Patrick Industries investor presentations, PR Newswire

Select Recent Transactions – RV Value Chain

Despite a Challenging M&A Environment,  Acquirers Continue to Target the RV Value Chain for Inorganic Growth

 

Sources: CapitalIQ; various industry publications

What We’re Reading – Challenges Facing Operators

 

Appendix A: Outdoor Recreation & Marine Public Trading Analysis

Outdoor Recreation & Marine Public Comparable Universe

Source: CapitalIQ as of January 16, 2024

Outdoor Recreation & Marine Public Comparable Universe

Source: CapitalIQ as of January 16, 2024

Disclaimer

The contents of this publication are presented for informational purposes only by Matrix Capital Markets Group, Inc. and MCMG Capital Advisors, Inc. (“Matrix”), and nothing contained herein is an offer to sell or a solicitation to purchase any of the securities discussed. While Matrix believes the information presented in this publication is accurate, this publication is provided “AS IS” and without warranty of any kind, either expressed or implied, including, but not limited to, the implied warranty of merchantability, fitness for a particular purpose, or non‐infringement. Matrix assumes no responsibility for errors or omissions in this presentation or other documents which may be contained in, referenced, or linked to this publication. Any recipient of this publication is expressly responsible to seek out its own professional advice with respect to the information contained herein.

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