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36 Year Old Property Management Co, Over 90% Recurring Revenue-Central Mountains CO

ServiceFor Sale in CO

Financial & Assets Details

$1,800,000
$500,000
$65,000
4500+/-

About the Business

1984
30
$3,700
Yes

Business Description

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. 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.

Brief Overview and More Details:

The company primarily manages Community Homeowners Associations, commonly called HOA’s. This includes running the associations, providing maintenance, janitorial if needed, overseeing vendors and contractors, all the accounting services and managing the Board and annual meetings. Some of the associations are condominiums and some are community/single family associations. There is a small division of the company that offers home care services for a limited number of owners. These home care services include home checks, housekeeping, hot tub and maintenance services. They have many very long-term customers as well as built in new accounts with a large number of new units and buildings being constructed within associations that currently exist under existing master associations.

They have 30 full or part time employees with 9 employees being there 10 years or longer. Employee turnover with a sale is not anticipated particularly with one of the owners staying on and the other working owner committing to help with a smooth transition. The different departments have strong managers.

The company has a solid reputation and has no legal battles. Since 1984, the company has had a great reputation with top notch customer service. They also have a good worker’s safety history with limited claims and enjoy a good workman’s’ comp rate due to their safety record.

Marketing: They do virtually no advertising. The work finds them based on their reputation. They had only 3,400 in advertising cost in 2018 for example. The company has grown “organically”. If the new buyer wants to increase this growth rate, he/she really just needs to add more qualified employees and say “yes” to more HOA’s. They turn down work currently and maintain a fairly narrow focus. A new buyer could expand their territory into other resorts, get back into finding people to lease/rent units both short and long term, and provide other services for their current HOA’s. Eventually, they could increase advertising and/or add a salesperson. Their online presence is a good website with no SEO, no Facebook, no Instagram and no presence on LinkedIn.

Financial Information: Asking: 1.900,000. They will keep their cash AR net of AP. The business will transfer debt free.

Sincerely,

Jeff Chapman
Business Broker Colorado, LLC
Denver, CO
Direct 303-905-7607
Fax 720-524-6482
jeff@businessbrokercolorado.com

This is prepared by Business Broker Colorado LLC and with Company Broker Group LLC being the managing broker with information provided by the Seller. It was not created by the seller and neither the Broker or the Seller are responsible for its accuracy. Buyers are responsible for their own due diligence. Neither the Broker or the Seller will indemnify or guarantee any forward looking statements or projections. The information contained in this e-mail message is confidential and may be protected from disclosure. Please be aware that any other use, printing, copying, disclosure or dissemination of this communication may be subject to legal restriction or sanction.

Different Brokerage relationships are available which include Seller agency, buyer agency, or transaction – brokerage.

Brokerage disclosure to Buyer or Tenant of Property. Definition of working relationships.

Seller's Agent: a seller's agent works solely on behalf of the seller to promote the interests of the seller with the utmost good faith, loyalty, and fidelity. The agent negotiates on behalf of and ask as an advocate for the seller. The seller's agent must disclose to potential buyers all adverse material facts actually known by the seller's agent about the business/property. A separate written listing agreement is required which sets forth the duties and obligations of the broker and the seller.

Buyer’s Agent: a buyer’s agent works solely on behalf of the buyer to promote the interests of the buyer with the utmost good faith, loyalty and fidelity. The agent negotiates on behalf of an accident advocate for the buyer. The buyer’s agent must disclose to all potential sellers all adverse material facts actually known by the buyer’s agent, including the buyer’s financial ability to perform the terms of the transaction. A separate written by a Buyer agreement is required which sets forth the duties and obligations of the broker and the buyer.

Transaction broker: the transaction broker assist the buyer or seller or both throughout a real estate transaction by performing terms of any written or oral agreement, fully informing the parties, presenting all offers and assisting parties with any contracts, including the closing of the transaction, without being an agent or advocate for any of the parties. A transaction-broker must use reasonable skill and care and the performance of any oral or written agreement, and must make the same disclosures as agents about all adverse material facts actually known by the transaction – broker concerning the property or a buyer's financial ability to perform the terms of a transaction and whether the buyer intends to occupy the property. No written agreement is required.

Business Broker Colorado LLC and Company Broker Group, LLC, and Jeff Chapman Eisnaugle will be operating solely as a “Seller Agent” in all transactions.




Growth & Expansion

Marketing: They do virtually no advertising. The work finds them based on their reputation. They had only 3,400 in advertising cost in 2018 for example. The company has grown “organically”. If the new buyer wants to increase this growth rate, he/she really just needs to add more qualified employees and say “yes” to more HOA’s. They turn down work currently and maintain a fairly narrow focus. A new buyer could expand their territory into other resorts, get back into finding people to lease/rent units both short and long term, and provide other services for their current HOA’s. Eventually, they could increase advertising and/or add a salesperson. Their online presence is a good website with no SEO, no Facebook, no Instagram and no presence on LinkedIn.

Seller Financing

10%

Market Competition:

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.

Location Details:

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. 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.

Support & Training

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.

Reason for Selling:

Retiring

Listing ID: 18448

Listed by:

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