HOA Management Business for Sale – Sticky Revenue & Huge Potential!
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Feb 14, 2025
Discover the fascinating world of HOA management, where a North Carolina company is thriving with nearly $2M in revenue. Learn how this business model benefits from 'sticky' revenue and long-term client relationships. The hosts delve into the differences between property and HOA management, exploring the challenges of governance and the potential for growth through AI and outsourcing. Can this model become a prime target for acquisition? Tune in for insights on profitability and scaling opportunities in a unique industry!
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insights INSIGHT
HOA vs. Property Management
HOA management involves overseeing financials, maintenance, and governance for multiple homeowners or condo associations.
It differs from property management, which typically focuses on individual properties or landlord-tenant relationships.
question_answer ANECDOTE
Dysfunctional HOA Anecdote
Mills Snell shares an experience with a dysfunctional HOA, highlighting the complexities and stickiness of HOA management.
Despite the dysfunction, the HOA manager effectively handled financials and operations, demonstrating their entrenched role.
insights INSIGHT
Sticky Revenue and Growth
HOA management companies benefit from sticky revenue due to the difficulty of switching providers for associations.
This stickiness, while advantageous for profitability, can hinder organic growth and make acquisitions a more effective scaling strategy.
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How Acquisition Entrepreneurs Outsmart the Startup Game
Walker Deibel
In 'Buy Then Build,' Walker Deibel provides a comprehensive guide for acquisition entrepreneurs. The book explains how to skip the startup phase and generate profitable revenue immediately by buying an existing company. It covers topics such as finding great brokers, generating 'deal flow,' uncovering opportunities and risks, navigating the acquisition process, and transitioning into the role of a CEO. Deibel argues that buying a business is often more lucrative than starting one from scratch, especially with the current market trends and the retirement of baby boomers who own many small businesses.
You won’t believe how sticky this business model is—an HOA management company with nearly $2M in revenue and major expansion potential!
Business Listing - https://vrcharlotte.com/listing/hoa-coa-association-management-company/
Sponsored by: 👉 Acquisition Lab - Get the best support and resources for buying a small business. https://www.acquisitionlab.com/ 👉 Check out what's going on at the HoldCo Conference: https://www.holdcoconference.com/
In this episode, we dive into a fascinating HOA management company for sale in North Carolina, generating nearly $2M in revenue with 170 contracted associations. The team breaks down the difference between property management and HOA management, explores the sticky revenue model, and discusses potential opportunities for margin expansion through AI and outsourcing. Could this be the ultimate acquisition for an ETA buyer?
Key Highlights: 📌 What does an HOA management company actually do? 💰 $2M revenue, $600K SDE—how profitable is it really? 🔄 The recurring revenue model and why it’s hard to grow organically 📈 How big players are scaling through acquisitions in this space 🤖 Could AI and outsourcing double profitability? 🏠 The headaches of HOA governance—why is this business so sticky?
Acquisitions Anonymous - #1 for business buying, selling and operating 