HoA Management Valuation

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May 26, 2025

by a searcher from University of Pennsylvania - Philadelphia in New York, NY, USA

Hello! For those who have made or deeply explored investments in HoA property management space, would you mind commenting on the following: - (A) general valuation levels for medium- to high-quality business with $1-2m EBITDA? - (B) what general % of EBITDA you’ve seen coming from float-based income (that is sensitive to interest rates)? - (C) do you typically separately value this float-based income (eg lower valuation given where we are in rate cycle and 100% drop through from rev to EBITDA assuming rates come down)? - (D) how do you typically manage interest rate risk from float-based income (eg, through hedging or longer-term earn outs to seller)? I have a quite deep tech private equity background and am keen on the space for its tech enablement potential (incl AI), but making sure here that I can wrap my head around the items above.
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Reply by a lender
from Eastern Illinois University in 900 E Diehl Rd, Naperville, IL 60563, USA
I cannot speak in depth from an operator perspective, but from a lending perspective we have financed many property management companies over the years. We would be happy to take a look. We offer a free assessment from a financing perspective. You can reach me here or directly at redacted
commentor profile
Reply by a searcher
in Michigan, USA
I was looking at one but the multiple was too high. Very interested to hear what others have to say.
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