In the last couple of blogs, we covered the essential steps involved in selling your business and how to prepare for the sale. From assessing the value of your business to understanding the sale...
Valuing your business accurately is crucial whether you’re planning to sell, attract investors, or simply want to understand its true worth. One of the most effective ways to do this is by using...
Timing is crucial when preparing your business for sale. Ideally, you should start preparing your business for sale at least two to three years in advance to optimize its appeal to buyers. However, be...
Investing in businesses vs investing in real estate is often a decision that investors must weigh in. Of course, each investment has its distinct advantages and disadvantages. While investments in...
Fees and Costs for Selling Your Business Selling a business involves more than just finding a buyer. As a business seller, you’ll encounter a variety of costs at the closing table that can...
Elevating Your Business Sale Preparation with Accel Business Advisors in 2024 If you ever think about selling the business you have built and run for so many years, it is important you have a clear...
Selling a business is a big decision and a complex process. While the specifics can vary based on the business and the broker involved, I want to share a general overview of what the process typically...
Many business owners envision selling their companies within the next five years, but the reality is that many won’t achieve this goal. In fact, many will be ill-prepared to start the sale process...
10 Questions to Ask Every Acquisition Target 70% to 90% of all acquisitions fail to achieve the results acquirers want. Why? Most often, failure is directly tied to the integration plan and...
Property Management M&A Trends and Insights
The property management sector—especially residential and small commercial firms—is experiencing increased M&A activity due to its recurring revenue and scalability. With over 80% of firms independently owned, consolidation is gaining momentum. Now may be the ideal time to sell, and Accel Business Advisors advises owners on strategic exits.
Why Business Owners Are Selling
Many property management owners consider selling after growing their portfolio, seeking retirement, or reducing involvement. With strong buyer demand, firms with recurring contracts and low churn are highly attractive. We specialize in securing top-dollar sales for owners.
Valuation Benchmarks
SDE Multiples: 2.5x–3.5x for firms under $1M in SDE
EBITDA Multiples: 4x–6x for larger, systematized firms
- 🔑 Key Valuation Drivers
- • High percentage of recurring revenue signals stable cash flow.
- • A diverse portfolio of property types attracts buyers.
- • Accurate financials with GAAP-compliance build trust.
- • Use of modern tech (AppFolio, Buildium, Propertyware) enhances scalability.
- • Documented SOPs reduce transition risk.
- • Strong client retention and minimal churn boost value.
- ❌ Common Valuation Detractors
- • High client concentration increases risk.
- • Poor financial records limit financing eligibility.
- • Heavy reliance on one-time fees lowers stability.
- • High churn rate signals weak client relationships.
- • Lack of operational systems or tech complicates integration.
- 💸 Typical Deal Structures
- • Seller’s note: Seller-financed portion, repaid with interest.
- • Earnout: Performance-based post-sale compensation.
- • Equity rollover: Seller retains partial ownership in the combined entity.
- • SBA loans/bank financing: Common tools for deal funding.
- 🧑💼 Who’s Buying Property Management Firms?
- • Private equity-backed roll-ups
- • Regional strategic acquirers
- • Individual buyers from real estate/corporate backgrounds
