"HOW TO VALUE A PROPERTY MANAGEMENT COMPANY
Steve Murray, the president and co-founder of REAL Trends, the nationís leading trends and research organization, was one of the speakers at this year's Pulling Back The Curtain property management conference. His company does 15 - 20 valuations/month so he went over some industry trends and walked us through how to valuations are determined.
The 3 main factors that drive your value higher are:
1.Profitability (pre-tax cash flow)
2.Consistency (in your growth, personnel, and records)
3.Portfolio Churn (the lengths of your contracts).
Your financial valuation is determined by your EBITDA (Earnings Before Interest, Taxes, Depreciation, & Amortization) multiplied by 2 - 5. Determining your multiplier depends on a multitude of other factors.
You can read full details in our article here."
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