Property Management- Family Business

searcher profile

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?


0
11
314
Replies
11
commentor profile
Reply by a searcher
from Brigham Young University in Lehi, UT, USA
Property management around 2-4x EBITDA
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.
commentor profile
Reply by a searcher
from University of Miami in Key Biscayne, FL 33149, USA
^redacted‌ I actually just closed on a property management business last week. Happy to discuss valuation with you and some ideas. You can email me at nick at endangeredinvestments dot com
commentor profile
+9 more replies.
Join the discussion