When Scott Raymond started buying real estate, he looked for a property management company to maintain his buildings. He couldn’t find anyone to care as much as he did, so Raymond decided to start his own property management business.
Despite falling into the business accidentally, Raymond built his property management company to 25 employees and $2 million in annual revenue when an acquirer approached him. MYND Property Management is a venture-backed company doing a roll-up in the property management space and was impressed with what Raymond had built.
Raymond knew real estate management companies were trading at 1-2 times revenue and viewed MYND’s initial offer as too low. Instead of walking away, Raymond worked with MYND to help them understand why they should pay more for his company. Raymond also approached one of MYND’s competitors kicking off a mini bidding war for his company.
In the end, Raymond got a deal he was happy with, and in this episode, you’ll learn:
- How to nudge an acquirer to improve their offer
- One surprising way to get a sense of what your business is worth
- How to tell your employees you’re selling your business
- How to negotiate your earn-out
- How to transition your brand equity to an acquirer’s company
- Why Raymond is happy with his decision to sell