Looking at buying a property management company with monthly rent roll of 20 K, how much would this company be valued at?
2006-11-21 14:32:53 · 3 answers · asked by shahil_fj 2 in Business & Finance ➔ Renting & Real Estate
Typically, a business is valued either using EBITDA (earnings before interest taxes and amortization) or by looking at their NPV (net present value of cash flow). It can also be valued by looking at asset size.
In this case, I would go with EBITDA since it is a service business with no assets and NPV might not be applicable since the rent roll is relatively small.
2006-11-22 01:26:38 · answer #1 · answered by boston857 5 · 0⤊ 0⤋
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2016-07-19 18:44:04 · answer #2 · answered by Marcela 3 · 0⤊ 0⤋
You should request all of the profit/loss statements. We would need that data to answer your question.
If you are asking how much of a commission they get it might vary by area. 6% where I live if they are residences, 10% for business.
2006-11-21 15:23:47 · answer #3 · answered by Anonymous · 0⤊ 0⤋