Once every few weeks, we receive a phone call with this exact message. This trend highlights three important insights about the strata management industry:
- There are companies that are proactively seeking to buy strata management businesses.
- Your business is valuable and in demand.
- Some buyers aim to secure deals in a non-competitive environment and fashion.
Strata business owners should adopt a stance of professional skepticism when encountering these offers by asking these key questions:
- Is it a good deal? Or is the party just someone out there throwing offers around and hoping some will stick?
- What is the value of your strata management business? Especially when it’s put to the marketplace and when determined by market forces.
Once you’ve assessed the broader situation, it’s time to dig deeper into the specifics of the offer. The table below outlines the aspects to consider:
| Aspect | Questions to Ask |
| Valuation Basis | Is the offer and valuation based on the correct and most appropriate method? |
| Revenue Components | Does the valuation include all revenue sources? |
| Pipeline & Developer Contacts | Have these valuable relationships been factored into the valuation? |
| Retention Periods & Risk | Are the retention amounts and periods fair and balanced in terms of risk? |
| Sale Value Risks | What are the significant factors that could potentially erode your sale value? i.e. will they immediately rebrand and oust all your experienced staff members? |
| Offer Conditions | Is their offer subject to finance and lengthy due diligence with a risk of non-completion of sale? In this event, have appropriate NDAs been signed to protect your business interests? |
| Professional Advice | Have you consulted the right experts for accounting, tax, legal, and sale advice? |
At the end of the day, remember this:
You only have one business to sell—and it can only be sold once.
Don’t leave it to chance. Speak to a strata business sales specialist. Speak to us—Strata Business Brokers.
