Episode 82: Preparing Your Property Management Co for Acquisition Ft Dylan McGrath

Feb 6, 2024

Business acquisition expert Dylan McGrath joins host Bob Preston to discuss preparing a property management company for acquisition. They cover topics such as engaging a business broker, valuation models, due diligence, and structuring the sale. They also touch on the current state of company valuations and the steps involved in closing the sale.

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Episode notes

Introduction

00:00 • 3min

Preparing for the Sale

02:54 • 9min

Performing Due Diligence for Client Sale

12:04 • 9min

Exploring Asset Sales vs Stock Sales in Acquiring a Property Management Company

21:04 • 3min

Discussing limited liabilities and promoting Rinscale for property management companies

24:21 • 2min

Current Valuations in the Property Management Industry and the Impact of Interest Rates

25:57 • 2min

Property Management Company Acquisition

27:30 • 25min

In this episode, host Bob Preston and guest Dylan McGrath discuss how to prepare a property management company for acquisition, what is involved in the process, and various valuation models. If you have ever wondered what it would be like to sell your business and what steps would be involved, this episode is a must-listen!

Takeaways:

Costs to engage a business broker
Models for valuing a property management business
Structuring of a property management business sale
Due diligence and information exchanged

Chapters:
00:00 Introduction and Dylan’s background
04:54 Getting started in selling a property management company?
08:42 Fees paid to a business broker
12:14 Due diligence process and information exchanged
16:23 Valuation models for property management companies
21:11 Structuring the purchase arrangement: asset sale vs. stock sale
25:58 The current state of company valuations
32:05 Steps involved in closing the sale
46:49 Clawback provisions in an agreement
49:20 Closing comments and how to connect with Dylan

Connect Dylan McGrath: https://www.linkedin.com/in/dylanmcgrath

Episode 82 Featured Sponsor: RentScale
RentScale is the largest sales consulting and coaching company in the residential property management industry. Over 400 residential property management companies in North America have trusted RentScale to craft their custom sales playbook, install a repeatable selling system, and train their team to attract new property owners at profitable rates. (https://rentscale.com/)

Our Industry Icon Sponsors supporting the show:
SureVestor (https://surevestor.com/)
Blanket (https://blankethomes.com/)
VPM Solutions (https://www.vpmsolutions.com)
RentScale (https://rentscale.com/)
APM Help (https://www.apmhelp.com/)
Upkeep Media (https://www.upkeepmedia.com/)
Second Nature (https://www.secondnature.com/)
zInspector (https://www.zinspector.com/)
Showdigs (https://www.showdigs.com)
LeadSimple (https://https://www.leadsimple.com/)

Connect with Bob Preston
https://www.propertymanagementbrainstorm.com/

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