How to Sell Your Property Management Company in 4 Steps

Property management is a demanding business. If you are looking to sell your property management company, it’s essential to know what your business is worth and how to find the right buyers.

Whether it’s time to retire or just looking to sell a business that has been run well, the decision process can be difficult and complex.

According to the McKinsey & Company, the value of real estate assets has fallen 25% in most sectors and 37% for lodging due to Covid-19. Here are some tips for making your way into this profitable field and how you can go about doing it with minimal risk.

4 Steps on How to Sell Your Property Management Company

Step 1: Valuate a property management company

One of the first steps in selling a property management company is to hire an appraisal firm or independent appraiser with experience in evaluating property management business. They will provide important information about how much your company is worth and the best way to proceed with the sale process.

Step 2:  Finding a buyer for your property management company

Once you have the appraisal of the business, conduct searches on the directories for companies that might be interested in your company. You should also engage a business broker who can help you find buyers for your property management company or provide information on how to go about finding one. The broker will also be able to help you negotiate the price.

Step 3: Determining the nature of sale for your property management company

It’s important to choose a selling method that is right for your business. You should seek advice on how best to do this as part of your appraisal and valuation process. There are both advantages and disadvantages involved in going public or in selling privately. Just like with any business transaction, the more you know about your options, the better.

For example, you may list your company with the Securities Exchange Commission or other securities listing and trading markets in going public. This can attract more potential buyers, but it also opens up access to investors in ways that include higher scrutiny into the performance of your business over time.

Similarly, if you sell privately, you will have less access to investors, but you should be able to pursue an exit strategy that works within a specific time frame. This enables you to sell within five years at a price determined by the market conditions and your own financial situation.

Step 4: Sell your property management company

Once you have received an offer for your business, it’s time to come up with a sales agreement and work out the last details of the deal. Make sure that you check the buyer’s financial position before completing the transaction.

Here are a few things that you should be wary of when negotiating your property management company sale:

A) How much research has the buyer conducted to make sure they want to buy your company?

B) How will you get paid for your business, and what happens if things don’t work out as planned.

C) How can you ensure that any agreements with a buyer have an exit clause built-in so that you can back out if things go wrong.

D) How long will the buyer be required to run the business if they do buy actively?

E) How much experience does the buyer have in managing a property management business?

When planning the sale of your property management company, be mindful of these potential issue. Business brokers offer for professional help so that you can avoid any pitfalls which may incur a loss in profits.

Selling a company sounds like quite an endeavor. Wouldn’t life be easier if there were people out there ready to take care of all those steps for you? Well, good news: There are professionals such as Sunbelt Business Brokers waiting nearby for anyone looking to sell or buy a business, like you!

So why not get in touch with us today? We can help you find a buyer, negotiate the sale, and work on everything else that goes along with it. We have locations in Fort Myers, Naples & Sarasota available to help you sell your property management company.