Listing ID: 66619
Business Overview
This business is a boutique full-service property management firm with an established book of business in a highly lucrative Seattle area marketplace and presence in neighborhoods of Laurelhurst, Montlake, Windermere, Madison Park, Queen Anne, Ballard, and Magnolia. The company serves a select client demographic seeking competitive returns on residential investment properties and turnkey asset management solutions. Setting the industry standard for client care, integrity and
professionalism, the firm employs a highly streamlined business model combining superb local market knowledge, cloud based convenience, and data driven analysis and management practices. Current assets under management include single and
multi-family residences, short and long-term rentals, furnished and unfurnished properties, vacation rentals, underutilized primary residences, and adjacent dwelling units.
Comprehensive client representation services generating additional revenue
include initial consultation, marketing, staging and photography, cleaning and maintenance, diligent tenant screening, lease negotiations, rent collection, and comparative market analysis.
Continued organic year over year growth of the business is attributable to the firm’s excellent industry reputation and a diversified revenue profile. The temporary, pandemic related decline in short-term rental and tourism related revenue was
offset by outperforming sectors of the asset portfolio resulting in a record year in 2021. The company has successfully pivoted toward a more efficient and cost-effective model of operation rooted in remote engagement using virtual 3D property
tours, digital marketing, seamlessly integrated and secure website functionality, advanced reporting and analytical capabilities, contactless document execution, and domain specific management software. With vacancy rates at historical
lows, imminently increasing rental rates, and continued soaring demand for high quality rental units in the elite Seattle metropolitan area, the business is strategically positioned for long-term future growth.
The lead business broker for this company at IBA is Oliver Kotelnikov. Mr. Kotelnikov can be contacted directly at (425) 454-3052 or oliver@ibainc.com.
Financial
- Asking Price: $195,000
- Cash Flow: $130,000
- Gross Revenue: $400,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: N/A
The seller will provide an appropriate transition training/consulting period to smoothly transfer ownership of the business.
Why is the Current Owner Selling The Business?
There are all kinds of reasons why individuals choose to sell businesses. However, the real factor vs the one they tell you may be 2 absolutely different things. For instance, they might claim "I have way too many other responsibilities" or "I am retiring". For lots of sellers, these reasons stand. But also, for some, these might just be justifications to try to conceal the reality of changing demographics, increased competitors, recent decrease in earnings, or an array of other reasons. This is why it is very essential that you not depend completely on a vendor's word, but instead, utilize the vendor's response along with your total due diligence. This will paint an extra realistic picture of the business's present situation.
Existing Debts and Future Obligations
If the existing company is in debt, which numerous companies are, then you will have reason to consider this when valuating/preparing your deal. Many companies take out loans so as to cover points such as inventory, payroll, accounts payable, so on and so forth. Bear in mind that in some cases this can mean that earnings margins are too thin. Numerous businesses fall into a revolving door of taking on debt as a way to pay back other loans. Along with debts, there may likewise be future obligations to think about. There might be an outstanding lease on tools or the structure where the business resides. The business may have existing contracts with vendors that should be satisfied or may lead to fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do businesses in the location draw in new consumers? Most times, operating businesses have repeat consumers, which develop the core of their everyday earnings. Specific variables such as new competitors sprouting up around the area, road building and construction, and also staff turnover can impact repeat consumers as well as negatively impact future incomes. One essential thing to take into consideration is the location of the business. Is it in a highly trafficked shopping center, or is it hidden from the main road? Certainly, the more people that see the business on a regular basis, the higher the opportunity to build a returning client base. A final thought is the basic area demographics. Is the business placed in a densely populated city, or is it situated on the outside border of town? Just how might the local average household income influence future earnings potential?
