We’re talking today about how to sell your property management company. LandlordSource has a lot of great products that help you buy and sell property management companies. I’ve had a lot of people come to me and ask for more information on how to do it. I’m always happy to help, because there’s a lot you need to know.
What is the Company Worth?
The one question everyone seems to have for me is: how do I value what the company is worth? It can be a challenge to actually put a number to your company. But to sell it, you’ll have to put a multiple on that company and prepare to find buyers who are willing to pay. In general, to sell a property management company, you can expect the value to be one times your gross. That gives you an idea and a starting point.
Evaluate Your Company
The next step is to evaluate your company and where it currently stands. Make sure you have your clients locked in with a management agreement for the coming year. Also, you need to think about what you’re really selling. Are you simply selling the book of your business, or do you want someone to buy the whole company, and keep the employees? This will affect how you determine the value of your business.
Plan for the Sale
Finally, you have to be willing to plan. When you want to get the maximum value for your company, it takes planning. It could take one entire year just to get things set so you can sell the company and maximize what you’ve spent your lifetime building.
If you have any more questions or you’d like to check out the resources and products we have available, please contact us at LandlordSource.