Episode 5 - Peter Loses A Property Management Acquisition Deal

Episode 5 of the Owner Occupied podcast with Peter Lohmann and Russell Lowery.  In this episode we discuss:

-A property management acquisition deal that fell through for Peter

-Russell has 2 potential deals, he talks about the risk with each one

-What multiple should you pay for a small business? What are the various considerations that go into a multiple

-Why did Peter lose his property management acquisition deal? What happened, why, could the outcome have been different?

-The risks of buying a small business 

(00:00) Intro

(02:17) Background of the property management acquisition deal

(04:10) Why I think we lost the deal

(06:18) Discussion of multiples to pay for SMB

(09:52) What would it mean for my business to manage 1000 doors

(14:12) If I had paid top dollar, would I have made money?

(16:30) Tips for buying a bolt-on business

(18:25) The psychology of doing a deal is intoxicating

(20:24) Clawback provisions in purchase agreements

(21:51) The seller must be motivated for a deal to work

(26:27) How banks evaluate distressed businesses

(27:52) What do I look at during due diligence

(32:43) What about the seller's employees

(35:55) The value of documenting key processes

(37:40) Buying a small engineering company

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Russell Lowery is a political puzzle solver. He runs a California based public affairs company highviewstrat.com. You can also connect with him on Twitter: twitter.com/russelllowery10

Learn more about Peter & how to connect with him here: peterlohmann.com

RL Property Management manages Columbus area rental properties: rlpmg.com