36 Yr Old Property Management Co, Over 90% Rec Rev, Central Mountains CO
36 Year Old Property Management with over 90% Recurring Revenues and over 70% of those customers are 10 years or older relationships. This business will be the same the day after the closing as it was the day before plus one of the 3 owners who is one of the two main property managers would like to stay on for a salary.
The 2019 revenues are estimated to be 1.8M with 500K in earnings up from 2018’s revenues of 1.7M and 470K in earnings. They need no advertising or SEO on their website. Their total advertising spent in 2019 was less than 4K on just being in the phone book.
One owner is a property manager also currently doing corporate work that wants to keep being a property manager with a similar salary package. He will stay 2 to 4 more years and basically eliminates the risk of the business changing ownership and losing customers.
This business works with Homeowners Associations with anything they need: indoor/outdoor maintenance, cleaning, emergency services, etc. They are the largest local HOA management company in their county and community with approximately 60 current HOA’s some large (over 1000 units) and some small. Plus, many are still growing and adding more buildings and units to their portfolios. They have an A+ rating with the Better Business Bureau and a great reputation locally.
They have approximately 65K in current value of assets which is mostly vehicles and small equipment/tools. They are leasing a building near the middle of town with 1 ½ years left on the lease with the ability to extend either there or with another property. This building is 4500 square feet with room for growth. Their rent is 3700/mo triple net. There is plenty of parking and future flexibility. The owners have a great relationship with the landlord. They are located in a resort oriented town in the Central Mountains of CO.
One of the owners is at retirement age and is the reason that they are selling.
The Company is being offered for 1.9M which is less than 4 times the earnings which is low for a recurring revenue property management company. This is a LLC and will be an “Asset” sale. The company is being offered for debt free with the Seller willing to carry 10%.They will leave all unused customer deposits, monies owed to vendors/employees etc. and pay off all debts at the closing. The % completion method will be used for work in progress to be trued up once the jobs are complete.