• News
    • VRM Intel News
    • Latest News
    • Sponsor News
  • COVID-19
  • Marketing
  • Tech
  • OTAs
  • Customer Service
  • Regulations
  • Business
  • Housekeeping
  • Subscribe
  • More
    • Calendar of Events
    • VRM Intel Live!
    • Reports Login
    • VRM Intel Magazine
    • Advertise
    • Authors
    • About Us
    • Contact Us
VRM Intel
  • News
    • Arizonans for Responsible Tourism Pregame Prep Campaign
      Arizonans for Responsible Tourism Hosts Super Bowl Preparedness Campaign for Vacation Rental Operators
    • vacation-rentals-housing-vrm-intel
      Carrots and sticks: Vacation rentals and the creation of affordable, workforce housing
    • Woman dropping off a ballot
      2022 Election Results of Vacation Rental Ballot Measures
    • Recession-Proofing Your Vacation Rental Business
    • How to Increase Your Occupancy in a Competitive Market through Monthly Rentals
    • VRM Intel News
    • Latest News
    • Sponsor News
  • COVID-19
    • Recession-Proofing Your Vacation Rental Business
    • 2022 Vacation Rental acquisitions from AvantStay, VTrips, Vacasa, Meredith, and more
      Who Sold? Here’s What We Know: 2022 Vacation Rental Management Acquisitions
    • 2021/2022 Ski Destinations Showing Big Performance Gains in ADR and RevPAR for Vacation Homes and Condos
    • “It’s like a short-term rental regulation pandemic.” 2022 Spring Vacation Rental Regulatory Trends + Fall Outlook
    • HR 2022: Attracting Today’s New Workforce after the Resignation Tsunami and the Great Renegotiation
  • Marketing
    • Recession-Proofing Your Vacation Rental Business
    • How to Increase Your Occupancy in a Competitive Market through Monthly Rentals
    • board meeting in presentation room
      Tourism Boards and DMOs Offer Seat at the Table for Vacation Rentals
    • Geotargeting & SEM: A How-To Guide on Spending Less & Getting More
    • All About the Data: Predictive Indicators with Jason Sprenkle
  • Tech
    • Recession-Proofing Your Vacation Rental Business
    • Geotargeting & SEM: A How-To Guide on Spending Less & Getting More
    • All About the Data: Predictive Indicators with Jason Sprenkle
    • PriceLabs Announces $30 Million Investment from Summit Partners
    • Ximplifi Adds Owner Portal to Automation Suite for Short Term Rental Accounting
  • OTAs
    • How to Increase Your Occupancy in a Competitive Market through Monthly Rentals
    • Blue Star Acquires Majority Stake in TravelNet Solutions
    • Vacation Rental Data and Revenue Management Conference, DARM 2022, Nashville
      Sessions Details for Upcoming Vacation Rental Data and Revenue Management (DARM) Conference: Livestream/Video Tickets Available
    • Vacasa (VCSA) Stock Falls as Lock-up Period Expires
    • 4 Ways to Stand Out in a Crowded Market: Get Your Brand & Listings in Front of Potential Guests
  • Customer Service
    • Why Not A Hotel? A Guest and Homeowner’s Perspective: There’s No Place Like Home … Or Is There?
    • Leading Proptech Company Guesty Appoints David Aber as CFO
    • Meredith Hospitality Brands Inc. Expands to Mt Hood with Acquisition of Mt Hood Vacation Rentals
    • View of Waikiki from Diamond Head Park, Honolulu, Hawaii
      Honolulu City Council Bans Stays Under 90 Days Across Oahu
    • Are you a Visionary without an Integrator at Your Vacation Rental Management Company?
  • Regulations
    • vacation-rentals-housing-vrm-intel
      Carrots and sticks: Vacation rentals and the creation of affordable, workforce housing
    • Woman dropping off a ballot
      2022 Election Results of Vacation Rental Ballot Measures
    • voters at a polling center voting
      Dozens of Vacation Rental Ballot Measures Heading to Voters this November
    • board meeting in presentation room
      Tourism Boards and DMOs Offer Seat at the Table for Vacation Rentals
    • Arizona state flag outside the legislature buildings at the state capitol
      Arizona Legislature Passes Measure to Restore Some Power to Cities
  • Business
    • Recession-Proofing Your Vacation Rental Business
    • Geotargeting & SEM: A How-To Guide on Spending Less & Getting More
    • All About the Data: Predictive Indicators with Jason Sprenkle
    • PriceLabs Announces $30 Million Investment from Summit Partners
    • Ximplifi Adds Owner Portal to Automation Suite for Short Term Rental Accounting
  • Housekeeping
    • Why Not A Hotel? A Guest and Homeowner’s Perspective: There’s No Place Like Home … Or Is There?
    • Analysis: “Reinventing” Vacation Rental Management by Alex Nigg
    • HR 2022: Attracting Today’s New Workforce after the Resignation Tsunami and the Great Renegotiation
    • Safety First: Evaluating and Addressing Safety Risks at Your Vacation Rentals
    • The Importance of the Guest Experience within Vacation Rental Operations: From the Back of the House to the Front
  • Subscribe
  • More
    • Calendar of Events
    • VRM Intel Live!
    • Reports Login
    • VRM Intel Magazine
    • Advertise
    • Authors
    • About Us
    • Contact Us
  • RSS

Business

Is now the best time to sell your vacation rental business?

Is now the best time to sell your vacation rental business?
mm
Jacobie Olin
June 1, 2022

I must admit, sometimes I indulge myself in stock trading. One thing I’ve learned is I’m never going to sell a stock at its highest point; however, it’s always good practice to sell when it’s trending up, as opposed to watching it peak, then reverse.

Right now, the short-term vacation rental market is 🔥. There are more buyers and more money than ever before. A few years ago, sometimes it took several months to receive an offer on your company. Today, we are seeing multiple offers in just a few days. While the buyer demand is certainly there, vacation rental operators will need to contemplate a few things before they decide to sell.

 

📈 Up and to the Right

For many vacation rental company owners, 2021 was their best financial year since they’ve been established. From inflated daily rates to pent-up guest demand, it’s definitely been a lucrative last twelve months.

Coming out of the strongest financial year to date, many sellers have the opportunity to leverage a multiple of their 2021 EBITDA to receive a high offer. Sounds great, right? Although we’ve seen this happen several times so far in 2022, not every seller is able to cash out at the highest point. There are many established industry buyers and several new ones entering the market; however, they are well versed in mergers & acquisitions and are expecting professional companies. For a seller to get the highest purchase price and terms, they also need to show a strong overall business that’s trending “up and to the right”.  Read more about that in Part 1 and Part 2 of our “Prepare Your Company To Sell” series.

 

💰 Types of Buyers

The amount of interest in the short-term vacation rental industry is at an all-time high. We’re seeing several types of buyers and each one looks at different company metrics, including EBITDA, Net Revenue, and Price per Unit. Read more about buyer metrics here.

> Venture capital-backed: Focused on net revenue, price per unit, and EBITDA
> Private equity/family offices: Focused on EBITDA over $1M and over 100 units
> Strategic operators: Companies in complementary markets or market competitors looking to expand for cash flow & diversity. Focused on EBITDA

 

🌼 Season

Most vacation rental markets have seasonality, and peak season is when operating accounts are overflowing. There are pros and cons to consider when selling pre-season and post-season.

Pre-Season

Pro: Typically buyers will put a higher price and less contingencies on the deal structure, for two reasons:

  1. Buyers get to retain the profits from peak season and come into season with a padded trust account
  2. Homeowners are less likely to leave the program when they have a full calendar of bookings

Con: The seller doesn’t get to keep the profits from the season. Also, it can be difficult to manage your company selling while preparing the business for the peak season.

 

Post-Season (the pros and cons are basically reversed)

Pro: The seller gets to retain the profits from peak season.
Con: Typically buyers will place more contingencies when closing after peak season because that is the time when homeowners consider leaving the program. Less bookings = less sticky homeowner contracts.

It’s not easy to decide when and how to sell your business. We can’t predict the future, but we do know the market is hot right now. Having completed transactions from $50K to $220M, C2G Advisors is the “Go-To” company for any size deal. Whether you’re looking to sell your company, strategically merge with another, acquire a company, or need a business valuation, we have the experience and expertise to ensure success.

Related ItemsAcquisitionsbusinessc2g advisorsEBITDAmergersNet RevenuePrice per Unitprivate equityshort-term vacation rental marketshort-term vacation rentalsSponsor Newsvacation rental marketVenture capital
Click to add a comment

Leave a Reply

Cancel reply

Your email address will not be published. Required fields are marked *

Business
June 1, 2022
mm
Jacobie Olin

Jacobie Olin has been involved in short term rentals, litigation consulting, food & beverage, and real estate for over a decade. Jacobie is one of the preeminent M&A consultants in the short-term rental industry. He specifically advises buy-side clients looking to expand into new markets through acquisitions and developer partnerships. He has worked as a subject matter expert on the BP Oil Spill, along with several other cases. A former restaurateur, he is currently a licensed RSPS REALTOR in Tennessee. Jacobie is the President of C2G Advisors, the leading advisory firm in the short-term vacation rental industry. Email us today for a confidential discussion at info@c2gadvisors.com or visit www.c2gadvisors.com.

Related ItemsAcquisitionsbusinessc2g advisorsEBITDAmergersNet RevenuePrice per Unitprivate equityshort-term vacation rental marketshort-term vacation rentalsSponsor Newsvacation rental marketVenture capital

More in Business

Recession-Proofing Your Vacation Rental Business

Sarah DuPreOctober 18, 2022
Read More

Geotargeting & SEM: A How-To Guide on Spending Less & Getting More

Jill Highsmith McGeeAugust 18, 2022
Read More

All About the Data: Predictive Indicators with Jason Sprenkle

Rebecca LombardoAugust 16, 2022
Read More

PriceLabs Announces $30 Million Investment from Summit Partners

VRM Intel StaffAugust 5, 2022
Read More

Ximplifi Adds Owner Portal to Automation Suite for Short Term Rental Accounting

VRM Intel StaffAugust 4, 2022
Read More

Blue Star Acquires Majority Stake in TravelNet Solutions

Amy HinoteJuly 26, 2022
Read More
Scroll for more
Tap

Sponsor News

  • Recession-Proofing Your Vacation Rental Business
    BusinessOctober 18, 2022
  • How to Increase Your Occupancy in a Competitive Market through Monthly Rentals
    Industry News for Vacation Rental ManagersSeptember 16, 2022
  • PriceLabs Announces $30 Million Investment from Summit Partners
    BusinessAugust 5, 2022
  • Ximplifi Adds Owner Portal to Automation Suite for Short Term Rental Accounting
    BusinessAugust 4, 2022
VRM Intel
Calendar of Events
Videos & Whitepapers
VRMintel Magazine
Subscribe
Advertise
About Us
Authors
Contact Us

Recent News

  • Arizonans for Responsible Tourism Pregame Prep Campaign
    Arizonans for Responsible Tourism Hosts Super Bowl Preparedness Campaign for Vacation Rental Operators
    Industry News for Vacation Rental ManagersJanuary 18, 2023
  • vacation-rentals-housing-vrm-intel
    Carrots and sticks: Vacation rentals and the creation of affordable, workforce housing
    Industry News for Vacation Rental ManagersDecember 6, 2022
  • Woman dropping off a ballot
    2022 Election Results of Vacation Rental Ballot Measures
    Industry News for Vacation Rental ManagersNovember 11, 2022
  • Recession-Proofing Your Vacation Rental Business
    BusinessOctober 18, 2022

View Current Issue

VRMintel Copyright © 2016-17 | Click HERE to Subscribe | Privacy Policy | Disclaimer | Copyright | Jobs | Facebook | Twitter | LinkedIn

Front of the House, Meet the Back of the House
Moneyball for Vacation Rental Managers

xxx videos

  • mamadas
  • redwap
  • free porn
  • porno gratis