Valuation Help for a QI (Qualified Intermediary)

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July 24, 2024

by a searcher from Louisiana State University - E. J. Ourso College of Business in Atlanta, GA, USA

How should I approach valuing a QI company?

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Reply by a searcher
from Louisiana State University in Atlanta, GA, USA
Sure.


This company specializes in facilitating 1031 exchanges, a type of real estate transaction that allows investors to defer capital gains taxes when they sell an investment property and reinvest the proceeds into a similar property. They provide intermediary services to ensure compliance with IRS regulations, manage the exchange process, and offer consulting, document preparation, and transaction tracking services.

The broker is valuing this business at 3-5x multiple. It seems to me it would be more appropriate to value this business more as a consulting business at 1.5-2x multiple.
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Reply by a professional
from Southern Oregon University in Portland, OR, USA
Hi ^redacted‌. We, BVR, specializes in valuation data, content, and training. I'd be happy to hop on a call to discuss. My direct telephone number is###-###-#### Did you try pulling comparable transaction data from the BVR Transaction Data with DealStats to compare the multiples? It is the link that Luke provided.
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