Help Valuing a Property Management Business
I have a lead on a older gentleman retiring and wanting to sell his property management business. I don't have a lot of details yet, but will be meeting in the next week to discuss. He has around 100 doors, but I'm not sure of his fee structure. In my opinion, the only guaranteed income are what's left on each contract.
I've been looking to start a PM business and this might be a good way to grow quickly and have some credibility with potential new customers. Any advice would be much appreciated! Here are some of my initial thoughts:
- After you pay a manager to run the operations, what is the net profit?
- What kind of multiple for this kind of business, if any?
- How much time/money is left on each contract?
- If his fees are too low for me, would I "grandfather" them in?