Full-service HOA management company, located in Colorado (South Denver Metro area), that services most types of properties and specializes in planned HOA communities, single family, townhome, patio home, condominiums, and commercial.
The company’s dynamite team of experienced Community Association Managers brings with them over 100 combined years of experience within the industry. The management experts take customer service and administration to the highest level. Two of these community managers are within months of obtaining their PCAMs highest designation. The company researched and worked with the top-tier solutions providers in the industry to ensure their services exceeded that of their competitors.
Locally owned and operated, the company’s technology-first approach ensures that staff and clients can easily access data and work from anywhere and at any time. The company has invested greatly in its people, processes and technology to make sure they stay one step ahead of the competition. This has enabled them to be cost-effective and typically deliver lower Total Cost of Management than their largest competitors. The company’s clients always have direct access to all the company’s support staff and accounting team.
The company is built on a strong foundation that includes policies and procedures. The company’s leadership team has tried, to the greatest extent possible or practical, to systematize everything they do in order to achieve efficiency, accountability and structure. Virtually all of the company’s policies and procedures have been documented and implemented in the last four years. The company has created an improving and sustainable environment with no decrease in service and quality. By making investments in its website, server, data management, network, equipment, and ERP system, the company has been leveraging technology to provide better and more efficient services to its clients.
The buyer has the opportunity to take on a well-run, fast growing, credit-worthy, and financially stable company with a unique culture, scalable business, and an excellent reputation for quality and service, as well as first class, highly trained and dedicated personnel. The new buyer will immediately have access to the company’s coveted list of contracts (recurring revenue representing 60% of total revenue), which represents approximately $700K in recurring revenue.
While achieving impressive financial and operations results over the past few years; with the new company website, marketing efforts and focus on business development in 2019, the company believes that substantial client and market gains are attainable in the future as well as over the long-run.
- Well-run company with an excellent reputation
- First-class and highly training personnel – CAM licensed
- Solid recurring revenues and assignable contracts
- State-of-the-art and modern IT infrastructure
- Impressive Gross Margins – 65% 2016, 70% in 2017 and 71% in 2018
- Excellent customer service
Over the period 2017-2018, the company witnessed steady growth in total income and gross profit after making several changes to the company’s people, process and technology. Moreover, the direct labor multiplier, or the revenue-to-labor ratio, has consistently improved from 3.3x in 2016 to 3.8x in 2017 and 4.2x in 2018.
The asking price is $1,000,000, which does not include the building but could be purchased with the sale. The asking price includes future cash flows from several new HOA contracts signed in 2019 which are all assignable.
|BUSINESS||Confidential||ASKING PRICE||$1,000,000 – RE not included|
|LOCATION||Colorado (South Denver Metro area)||INVENTORY||N/A|
|YEARS IN BUSINESS||11 years||RECURRING REVENUE||$708,428|
|OFFICE HOURS||Mon. – Fri: 8:30 A.M – 4:30 P.M||OWNERSHIP||LLC – 2 partners – 50% and 50%|
|FACILITIES|| Can be purchased with the sale of the company
The square feet of the building: 7,050 sq ft (4,653 office and 2,397 flex or warehouse).
▪The cost of mortgage/rent—negotiable
|REASON FOR SALE||The company is being sold for personal, lifestyle rationale. Each partner has his own reasons, but it has been a difficult decision for each of them. However, their expectation is that the sale of the company will allow it to grow further under new, strategic ownership.|