Is This a Good-Sized Property Management Company to Buy?
redacted
$1.5M in revenue
$350k in SDE
9 employees
No significant customer concentration
The company has a good mix of properties and stable, recurring revenue. However, I know the typical convention for search fund acquisitions is to aim for businesses with $500k+ in SDE. Given the recurring and reoccurring revenue nature of property management, I’m wondering if the smaller SDE size might pose less risk in this space compared to other industries.
Would love to hear from anyone who has experience in this sector. Does the recurring revenue model in property management justify acquiring a business on the smaller side of SDE? Any thoughts or advice would be greatly appreciated!