Negotiation, Earn-Outs, and the Pitfalls of Stock Deals in His $4.6M Exit with Pete Neubig

Pete Neubig started his entrepreneurial journey buying $35,000 houses with small down payments. After amassing 60 homes, he realized there was more money in managing properties for others.  

Pete shifted focus to building a property management company, handling maintenance and rent collection for over 1,000 homes, and eventually sold the business for $4.6 million or 1.75 times recurring revenue to an industry giant. In this episode, you discover how to: 

• Create SOPs even if you hate processes. 

• Cap your downside in an earn-out.

• Get more cash up front when selling your business.

• Avoid the pitfalls of accepting stock as payment.

Show Notes & Links

Official Press Release

Connect with Pete on LinkedIn

Definitions

Due-Diligence: This is a comprehensive appraisal of a business or investment undertaken before a merger, acquisition, or investment. It seeks to validate the information provided and uncover any potential risks or liabilities.

Earn-out: This is a financing arrangement for the purchase of a business, where the seller must meet certain performance goals before receiving the full purchase price. It reduces the buyer’s risk and aligns the interests of both parties post-acquisition.

Letter of Intent (LOI): This document outlines the basic terms and conditions of a deal before a formal agreement is drawn up. It serves as a mutual commitment between the buyer and the seller to move forward with the transaction on the agreed-upon terms.

Re-Trading: This occurs when a buyer attempts to renegotiate the purchase price of a deal after initially agreeing to one. It is often seen unfavorably as it occurs after due diligence, seemingly exploiting newly discovered information.

About Our Guest

Pete Neubig

Pete Neubig, CEO of VPM Solutions, brings a passion for solving the housing industry’s toughest challenges. Under his leadership, VPM Solutions has become the #1 platform for connecting businesses with remote team members tailored specifically for the property management industry.

With years of hands-on experience in property management, Pete understands the unique obstacles that businesses face. Known for his honest approach and commitment to delivering exceptional results, he is a problem solver at heart—always ready to go above and beyond for his clients.

In addition to his professional achievements, Pete is also an ironman triathlete. He draws parallels between his endurance training and the dedication required to overcome complex challenges in the property management space. His unwavering drive helps him navigate both athletic competitions and business hurdles with resilience and focus.