Property Management- Family Business
October 12, 2024
by a searcher from University of Chicago in Los Angeles, CA, USA
Hi Searchers!
An opportunity has come up with my family's property management and brokerage business. as my father wants to retire. The good news is it's a great opportunity, bad news is, I don't think the owner has a good sense of the value. which is making negotiations difficult.
Anyone on here have an idea of multiples & valuation for a prop management business, separating brokerage revenue from prop management revenue and or has experience with inheriting/partial buy out with family businesses?
from Brigham Young University in Lehi, UT, USA
Brokerage revenue tends to be more volatile, so it's often valued separately at 0.5-1x annual revenue, depending on the consistency of income. Since this is a family business, a few tips: Get a third-party valuation to settle any disagreements on price. Consider a phased buyout or seller financing, so your father can transition slowly. Be sure to clearly separate personal and business relationships during negotiations.
from University of Miami in Key Biscayne, FL 33149, USA