A larger operator may be interested in your geographic footprint, homeowner relationships or technology.
Their valuation may be driven by strategic expansion.
Short Term Rental
Short Term Rental
Homeowner Contracts & Retention Risk – Property Managers Focus Point In Valuation
Homeowner churn tells a buyer something about the stability of future revenue.
If you consistently lose 20% of your homeowners every year, a buyer has to replace that revenue just to stand still.
That’s expensive.
If your retention rate is excellent, your buyer has a much more predictable revenue stream.
And predictability is valuable.
Direct Booking vs. Airbnb, VRBO & OTA Revenue
If 90% of your bookings come through one online travel agency, a buyer is going to notice.
Quality of Earnings & Financial Normalization
One of the biggest mistakes I see business owners make when preparing to sell is assuming their tax return tells the entire story.
It doesn’t.
That’s especially true with vacation rental management companies.
The financial statements need to be normalized so a buyer can understand what the business actually earns.
EBITDA & SDE Multiples in Vacation Rental Management Companies
A vacation rental management company isn’t valued simply by taking the gross rental revenue and applying a percentage. Buyers are generally much more interested in the cash flow the management company actually produces.