Author: Scott

C2G Advisors > Articles posted by Scott (Page 4)

Selling a short-term vacation rental business is no small decision. It’s a process that combines the complexity of a multi-month due diligence period with the nuance of numerous moving pieces. However, the acquisition process can be more streamlined when armed with the right knowledge. Whether you’re considering retirement, shifting your career focus, or would just like to cash in on your investment, here are six steps on how to sell a vacation rental management business successfully.

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Premium beachfront vacation rental property representing high-value short-term rental management acquisition

Most owners of vacation rental management companies think valuation is determined by one of two things: a multiple of adjusted EBITDA, or a multiple of annual commissions. Those numbers definitely matter, and they’re the starting point of any conversation with a buyer. If you’re a bit rusty, we cover the mechanics of both valuation methods in our article how vacation rental companies are valued. However, the multiple isn’t everything. There are many other factors that separate a smooth, premium exit from a bumpy, discounted one.

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One of the most frequent questions we get is, “What’s my vacation rental company worth?” The answer isn’t always straightforward — but the business valuation methods used in the industry are. Let’s break down the two main valuation methods we use to figure out the value of a vacation rental business: the Adjusted EBITDA method and the Price Per Contract method.

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