Sell my property management business

I want to sell my residential and commercial property management company

If you are considering selling your property management business comprising residential and commercial property, enlisting business transfer agents with a nationwide reach can help secure a suitable buyer. You may consider taking the business sale route to make way for retirement, release cash or pursue another path. Selling a business can facilitate an exit without disruption to company operations and efficiently transfer ownership.

The real estate market in the UK employs over 500,000 people, with the commercial sector operating as the largest across Europe. The demand for commercial property, such as office spaces, conference facilities and warehousing is dependent on financial attainability and economic conditions. Global sustainability initiatives also push businesses to move to a greener way of operating, increasing demand for environmentally conscious commercial premises.

Commercial property is often an essential investment to establish a dedicated meeting point for employees, clients and to house physical company assets. To facilitate residential and commercial transactions, the industry is also highly reliant on the financial services sector. This makes way for unique partnerships and cross-sector business development opportunities.

If you are a business owner interested in selling your property management business, you will need to prepare your business for the open market and arrange a business valuation.

Selling my property management business

Owning a property management business supports the cycle of working in partnership with letting agencies, landlords, investors, and property owners. Residential and commercial property companies are instrumental in directing work to neighbouring businesses, reaffirming the ecosystem built by the property sector. A reputable and successful property management business can generate high turnover through strategic partnerships and intuitive marketing which makes selling your business a highly desirable acquisition opportunity for interested parties.

The role of a property management business varies, from providing administrative, tenant placement and maintenance services, to rent collection and general management of the end-to-end process. Your range of clientele may also vary from landlords with vast property portfolios, owners of large freehold property or individual landlords, making it vital to source a buyer with the industry knowledge and temperament to converse and retain a diverse client book.

Our reputable team of business brokers operate nationwide and continue to build upon a network of over 10,000 registered buyers. The Selling My Business team have 100 years’ collective experience, so they can share their industry know-how on how how to sell a property management business.

Preparing your property management business for sale

Your first step will be to understand how to sell a property management company and find out – how much is my business worth? Preparing your business for the sale process will consist of arranging a business valuation to calculate the market value and a suitable sale price. To market your business for sale, the Selling My Business team will produce an information memorandum to summarise the business sale opportunity. As leading business brokers with over 60 years of experience, we understand buyer expectations and how to maximise the value of your property management business.

To minimise disruption to the sale process, we will provide a business preparation checklist to ensure you have the appropriate documents on hand to support negotiations with buyers. We will request a copy of your company accounts and welcome additional documents that may support a successful sale. We will work closely with both parties to negotiate a watertight deal and agree to a competitive purchase price.

Conducting due diligence when selling a property management business

The due diligence stage is essential for property management business sellers and buyers. As a seller, you will need to confirm the legitimacy of the buyer and erase any suspicions. Due diligence checks consist of investigating the financial position of interested parties and ensuring they have the financial resources available to facilitate the business acquisition.

As an individual looking to buy a property management business or search for businesses for sale, ensuring the business in question is legally compliant will be a primary consideration. Buyers will confirm that legal safety requirements are met and that your business holds the relevant accreditations and membership with professional associations, i.e. The Association of Residential Managing Agents (ARMA).

We are specialists in company valuations and are often approached with the golden question - how much is a business worth? You will be able to establish a starting point after we conduct a professional business valuation.

How much is my property management business worth?

When valuing a property management business, your business worth will be based on numerous factors, including similar sales, market conditions and goodwill. Our in-house valuation team will run through how to value a property management business using different valuation methods when selling a business.

To answer how much is a property management business worth, our team of business brokers will share their knowledge on selling a business, including the key areas to look at:

Background – Company reputation, age, ownership, employee structure, historic performance, and services

Profitability – Net profit, turnover, cash flow, liabilities, tangible and intangible assets. How much are your property management contracts worth? Is your business on track to hit growth targets?

Clients – What is the average contract length? What are your customer churn and retention rates?

Following the Covid-19 pandemic, prospective buyers may request information concerning risk management, contingency planning and how your business fared during economic uncertainty due to the coronavirus pandemic. We offer a property management business valuation to company directors looking to sell their business or prepare for a future sale.

Value my property management business

If you wish to conduct a property management business valuation for an immediate or future sale, get in touch with the Selling My Business team. As a leading business broker, we have a network of regional offices across the UK to support business sellers and buyers countrywide. Our in-house team of business valuers will run through how to value a property management business.

Founded 60 years ago, our valuation services have supported over 12,000 business sales and we also work with numerous corporate partners. Our business valuation calculator is free to use and we also offer a free consultation to help you begin your business sale journey.

Covid-19 impact on property management services

As social distancing and stay-at-home instructions were announced in response to the coronavirus pandemic, owners of property management businesses were required to revise their operational structure and working styles. Workforces conducted day-to-day business from their homes by embracing home conferencing and virtual office platforms. This functioned as a catalyst for change, making way for a low-cost business model.

The coronavirus pandemic fast tracked the digital transformation of the professional services sector, directing investment towards IT infrastructure, phone lines and the redevelopment of commercial premises. The pandemic redefined the professional services sector, revolutionising a sustainable operational structure with greater work-life flexibility for service users, employees, and company directors.

Selling a property management business can be a streamlined process under the guidance of a professional business broker at Selling My Business. Founded in 1956, we have a demonstrable record of successful national business sales, including commercial and residential property management businesses.