Wanna Buy [or Sell] a Strata Management Business?

A fascinating side issue in the strata title sector is the buying and selling of strata management businesses.

It’s happening often, between existing strata sector players and new entrants, and often involves large amounts of money.  But, there’s not much information available.

So this Lookup Strata YouTube presentation by David Lin from Strata Business Brokers called How much is your strata management company worth? is a rare insight into what buyers, sellers and brokers or agents think about the value of those businesses.

That includes David’s list of 7 important things affecting business values.

1.  The strata management contracts matter.

2.  CPI increases on renewals.

3.  Future business pipelines.

4.  Business liabilities [details & tidying up].

5.  Fixed asset values [including depreciation].

6.  Quality of business & financial records.

7.  Accounting accuracy & strategies.

You can watch the presentation below.

And, get your chequebooks ready.