How To Make Peace With Your Decision To Sell

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.

To read a transcript of this episode, click here.

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

One year on from selling, Raymond is thrilled with his decision because the sale has allowed him to focus on his passion, which is real estate investing. Getting clear on what you plan to do next is the first of four steps to a happy and lucrative exit. Discover the other three by getting your PREScore™ now.

Check out our article on The Acquisition Entrepreneur.

Check out our full M&A Glossary

About Our Guest

Scott Raymond has spent his nearly thirty-year career in Investment Real Estate. After earning a Bachelor of Science Degree in Finance and Real Estate from California State University Northridge, and receiving his brokers license at 23 years old, Scott went to work for one of largest homebuilders in Southern California in the land acquisitions department. Scott was also tasked with conducting market studies of new home developments and ultimately worked his way into the Finance Department where he helped create feasibility models for prospective developments.