Valuation, explained

How property management companies are valued

Buyers of vacation rental and property management businesses are buying a stream of management fees and the owner relationships behind it. Most start from a multiple of earnings, then adjust for how durable and transferable those earnings are.

Scale alone isn't value

Buyers pay for profitable scale. A large portfolio with thin margins can be worth less than a smaller one that keeps more of every booking as profit.

Earnings come first

The starting point is normalised EBITDA: profit before interest, tax, depreciation and amortisation, adjusted for one-off costs and the owner's personal expenses.

The multiple reflects risk

Larger, well-run portfolios with predictable revenue earn higher multiples. Small businesses that depend on their founder, or on a handful of owners, earn lower ones.

What moves the multiple

Two companies with the same EBITDA can sell for very different prices. These are the factors buyers weigh most closely in due diligence.

Portfolio scale and density in each market
Owner contract terms: length, exclusivity and termination rights
Owner retention, and how often homes leave the portfolio
Guest reviews and the quality of the homes managed
Revenue growth track record, and a credible plan ahead
A management team that can run the business without the founder
Owner and distribution channel concentration
Clean, reliable financial reporting that stands up to scrutiny

When profits are thin

Loss-making or barely profitable operators are often valued on revenue instead. Some are bought for their portfolio of homes, by a buyer confident it can run them more profitably on its own platform.

Value is built before a sale

The strongest levers are usually a better margin, tighter owner contracts and numbers documented well enough to pass due diligence. That is what a profitability review is designed to deliver.

See what your company could be worth ↓

Valuation check

What is your property management company worth?

Answer several quick questions about your business and see an indicative valuation range for your company.

Takes about 3 minutes
Your result appears instantly on screen
Free and confidential

How it works

1Tell us about your businessPortfolio size, revenue, profit and growth
2Add your contact detailsSo we can follow up if you'd like to talk
3See your valuation rangeAn indicative enterprise value for your company

Common questions

How accurate is the valuation check?

It gives an indicative range from a few headline figures. A full valuation reviews your detailed financials, contracts and markets, and can land outside that range.

Is enterprise value what I would receive?

Not exactly. Enterprise value is the value of the business before debt and cash. What an owner receives also depends on net debt, working capital, deal structure such as earn-outs, and taxes.

Should I sell the company or just its contracts?

In a share sale the buyer takes over the whole company. In an asset deal it buys selected contracts and assets. Asset deals are common for smaller or less profitable operators. The right route depends on tax, liabilities and the buyer, so take professional advice early.

When should I start preparing for a sale?

Ideally a year or two ahead. That gives margin improvements and cleaner reporting time to show up in the numbers buyers review.

Discuss your company's value Back to the valuation check ↑