Episode 5 - Peter Loses A Property Management Acquisition Deal

Episode 5 of the Owner Occupied podcast with Peter Lohmann and Russell Lowery.  In this episode we discuss: -A property management acquisition deal that fell through for Peter -Russell has 2 potential deals, he talks about the risk with each one -What multiple should you pay for a small business? What are the various considerations that go into a multiple -Why did Peter lose his property management acquisition deal? What happened, why, could the outcome have been different? -The risks of buying a small business  (00:00) Intro (02:17) Background of the property management acquisition deal (04:10) Why I think we lost the deal (06:18) Discussion of multiples to pay for SMB (09:52) What would it mean for my business to manage 1000 doors (14:12) If I had paid top dollar, would I have made money? (16:30) Tips for buying a bolt-on business (18:25) The psychology of doing a deal is intoxicating (20:24) Clawback provisions in purchase agreements (21:51) The seller must be motivated for a deal to work (26:27) How banks evaluate distressed businesses (27:52) What do I look at during due diligence (32:43) What about the seller's employees (35:55) The value of documenting key processes (37:40) Buying a small engineering company --- Russell Lowery is a political puzzle solver. He runs a California based public affairs company highviewstrat.com. You can also connect with him on Twitter: twitter.com/russelllowery10 Learn more about Peter & how to connect with him here: peterlohmann.com RL Property Management manages Columbus area rental properties: rlpmg.com