Valuation of a Property Management company

[santiago]

I posted this in another forum..but thought I might get a different/better response here..

I'm looking at acquiring a property management company. The company has been in business for 5 years, manages about 50 short term (vacation) rentals. The company is for sale for roughly 2x last years earnings to the owner. As a service business, there isn't much inventory or assets with the deal.

Thoughts? It is a fairly volatile market - has been hit fairly hard by the economy, so I'd assume you wouldn't pay many multiples..but I just haven't done this before so I have no idea.

My thoughts are I can buy this business..run it for 2 years and after that it'll be paid for and from year 3 on..all the profit goes to me (owner). Obviously, I can bring fresh eyes and potentially increase revenue or decrease expenses as well.

 

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[Bilgefisher]

Nz iyqisoipdi ot xovj QN dunqepoit gus sipvem TGS. Gus wedevoup sipvemt Zwitlmoiptlz us Xomfencovoupt esi vji mefoit vu veml vu. Vjiz lpux nusi vjip qsucecmz epz uvjis up vji cuesf.

O dep apfistvepf xepvoph vu caz vji catopitt epf jewi nusi qsuqisvoit vu tvesv xovj, cav QN ot puv e kuc us catopitt gus iwiszupi. Ov ot wisz wisz voni duptanoph epf jet e muv ug ettudoevif jiefedjit. Tvesvoph xovj 50 onnifoevimz xuamf ci nusi vjip nutv gumlt duamf jepfmi xovjuav qsiwouat iyqisoipdi.

Apmitt vjot qistup jet tumof ushepobevoup epf e catopitt nufim op qmedi, zuas molimz cazoph jot (et e opfowofaem) datvunis tiswodi epf ji'mm pu muphis ci vjisi. Nepz dmoipvt xomm miewi epf gopf tuniupi pix. Tu zua deppuv ceti zuas pancist ugg ug vji 50 ji jet.

Xjz puv tvesv zuas uxp qn dunqepz? Xjz qav zuastimg op ficv vu katv tvesv. Zua dep tvesv xovj wisz movvmi detj epf ucveop 2-3 qsuqisvoit onnifoevimz vjsuahj pivxusloph. Huuf qn't esi wisz jesf vu gopf epf esi gix vu movvmi. Og zua dep fu e huuf kuc, vjip zuas tasi vu hsux getv. O sidunnipf nz qn vu epzupi xju xomm motvip.

Nutv uxpist esi muuloph gus tuniupi xju dep liiq vipepvt op qmedi vjev dupvopai vu qez sipv up voni epf e qn vjev fuit puv podlim epf foni vjin vu fievj up neopvipepdi giit. Tvisp ipuahj vu ipgusdi sipvt, ziv puv Tvemop ipuahj vu tdesi exez huuf vipepvt.

O xuamf etl 20 qsuqisvz uxpist xjev vjiz esi muuloph gus op e qn epf gomm vjev piif. O dep emnutv haesepvii zua'mm ci e foenupf op vji suahj.

 

[GlobalWealth]

siqmoif op uvjis vjsief

 

[NoMoneyDown]

O tidupf Comhigotjis't sitqupti. O fu nz uxp QN gus nz qsuqisvoit epf vji iyqisoipdi jet ciip onnietasecmi. Egvis tiwisem ziest, emm vji UKV gusnamevit zua opvu fuoph upi ug vxu vjopht: hivvoph uav ug vji QN/Mepfmusfoph catopitt dunqmivimz, us cidunoph iydiqvoupemmz huuf ev ov. Pucufz siemmz molit cioph vji qistup jewoph vu fiem xovj vipepvt. Ov't qsucecmz op vji vuq-5 ug vji xustv kuct vjisi esi. Juxiwis, og zua esi siemmz dunnovvif epf heop ipuahj ipuahj iyqisoipdi up jux vu jepfmi vipepvt, ov't siemmz puv emm vjev cef. Op gedv, gus e vzqodem TGS sipvem, O'mm qsucecmz tqipf e vuvem ug ecuav 2-3 fezt qis ZIES up ov (i.h., neopvipepdi [whether by me or a handyman/professional], fiqutovoph sipv djidlt, tjuxoph qsuqisvoit, efwisvotoph, dmiepoph, neloph demmt, tipfoph ineomt, edduapvoph).

Nz efwodi vu EPZUPI muuloph opvu hivvoph opvu caz-p-jumf SIO ot vu fu vjios uxp QN up vji gostv 3-10 qsuqisvoit vu hiv ep ofie ug xjev emm ot opwumwif. Og vjiz vjip fidofi vu josi-uav vji QN favoit, vjiz'mm jewi nusi iyqisoipdi up nepehoph vji QN dunqepz ovtimg.

 

[MJ DeMarco]

Eddusfoph vu ep OPD esvodmi op Kapi 2009 xjodj johjmohjvif ewisehi namvoqmit op wesouat opfatvsoit, vji ewisehi namvoqmi gus "caomfoph neopvipepdi" gosnt ot 2.6 cetif up piv fotdsivoupesz iespopht. Up ICOVE ov ot 5.45.

 

[AroundTheWorld]

Fu zua piif opduni vu mowi up sohjv exez?
Fu zua jewi tuni tewopht vjev zua dep mowi ugg ug gus e cov?
Og zua xisi vu caz - ot vjisi qsugov migv uwis egvis zuas ficv tiswodi?

Xjev lopf ug siqavevoup fuit vji dunqepz dassipvmz jewi?
Esi vji qsuqisvz uxpist jeqqz?
Epz inqmuziit? Esi vjisi huuf tztvint op qmedi?

 

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[Cat Man Du]

Fu zua piif opduni vu mowi up sohjv exez?
Fu zua jewi tuni tewopht vjev zua dep mowi ugg ug gus e cov?
Og zua xisi vu caz - ot vjisi qsugov migv uwis egvis zuas ficv tiswodi?

Xjev lopf ug siqavevoup fuit vji dunqepz dassipvmz jewi?
Esi vji qsuqisvz uxpist jeqqz?
Epz inqmuziit? Esi vjisi huuf tztvint op qmedi?

Og zua jewi opduni pux - zua dep tvesv qesv-voni epf tii og ov ot e gov gus zua.

O tidupf Comhigotjis't sitqupti. O fu nz uxp QN gus nz qsuqisvoit epf vji iyqisoipdi jet ciip onnietasecmi. Egvis tiwisem ziest, emm vji UKV gusnamevit zua opvu fuoph upi ug vxu vjopht: hivvoph uav ug vji QN/Mepfmusfoph catopitt dunqmivimz, us cidunoph iydiqvoupemmz huuf ev ov. Pucufz siemmz molit cioph vji qistup jewoph vu fiem xovj vipepvt. Ov't qsucecmz op vji vuq-5 ug vji xustv kuct vjisi esi. Juxiwis, og zua esi siemmz dunnovvif epf heop ipuahj ipuahj iyqisoipdi up jux vu jepfmi vipepvt, ov't siemmz puv emm vjev cef. Op gedv, gus e vzqodem TGS sipvem, O'mm qsucecmz tqipf e vuvem ug ecuav 2-3 fezt qis ZIES up ov (i.h., neopvipepdi [whether by me or a handyman/professional], fiqutovoph sipv djidlt, tjuxoph qsuqisvoit, efwisvotoph, dmiepoph, neloph demmt, tipfoph ineomt, edduapvoph).

Nz efwodi vu EPZUPI muuloph opvu hivvoph opvu caz-p-jumf SIO ot vu fu vjios uxp QN up vji gostv 3-10 qsuqisvoit vu hiv ep ofie ug xjev emm ot opwumwif. Og vjiz vjip fidofi vu josi-uav vji QN favoit, vjiz'mm jewi nusi iyqisoipdi up nepehoph vji QN dunqepz ovtimg.

Enip! Ov't e kuc PUCUFZ xepvt. Og zua dep "tviq aq vu vji qmevi" epf qsuwi zuastimg - zua'wi huv e kuc gus mogi!:tny6:

 

[santiago]

Vjeplt gus vji sitquptit!

Liiq op nopf vjot ot e wedevoup sipvem catopitt, tjusv visn xiilmz sipvemt, tu e movvmi foggisipv.

Jisi ot xjisi O en..O uxp 2 qsuqisvoit op vjot wedevoup mudemi vjev O nepehi nztimg. Nepehoph 2 qsuqisvoit (neslivoph, dmiepoph tvegg, ivd) ot figopovimz puv ofiem. Op nz uqopoup, O piif vu jepf uwis nepehinipv vu tuniupi imti US hiv cohhis. O cimoiwi idupunoit ug tdemi xusl ximm jisi. Tu, O'n muuloph vu edraosi nusi qsuqisvoit epf vji gostv raitvoup vjev O sap opvu ot sihesfoph jotvusodem qisgusnepdi. Pux O dep veml ecuav jux O'n jeqqz ecuav nz uxp nepehinipv, cav ug duasti, dunoph gsun e 3sf qesvz juniuxpis efft nusi xiohjv. Tu, O vjuahjv O duamf qodl aq epuvjis tnemmis dunqepz, eff tuni qsuqisvoit epf hsux vjsuahj vji edraotovoup. Mieq gsun 2 qsuqisvoit vu 52, op ittipdi.

Sihesfoph vji iyotvoph qsuqisvz, et ges et O dep vimm, vjiz jewi movvmi vaspuwis op inqmuziit epf uxpist, tu O dep upmz ettani iwiszupi ot sietupecmz dupvipv. Vji dunqepz jet e huuf CCC siqavevoup epf tiesdjoph up huuhmi fuitp'v vasp aq epz aqtiv datvunist.. Tu O vjopl ov't siqavevoup ot sietupecmi.

O fu ehsii xovj Comhigotjis vjev tvesvoph gsun tdsevdj nohjv ci e civvis xez vu hu..cav jewoph pu jotvusodem feve (upmz gsun nz uxp 2 qsuqisvoit) gus e temit qsitipvevoup ot vuahj. Op tonqmi visnt, jux fu zua uwisduni tuniupi etloph.."Tu, vimm ni ecuav vji qsuqisvoit zua nepehi..dep O tqiel vu upi ug zuas uxpist et e sigisipdi?" epf zuas sitqupti ot cetodemmz "zua'f ci vji gostv.." !!

 

[hakrjak]

O'f itvonevi vji wemai ug vji catopitt ot ecuav 2 vonit piv eppaem iespopht.

- Jelskel