Vacation Rental Management Co. Calculator
Have you considered selling your Vacation Rental Management company? Do you want to know what it’s worth? Fill in the following information and you’ll get a good idea!
There are two methods of valuing your vacation rental management company. Multiple of Revenue and Multiple of EBITDA. We’ll dig into each one below.
Valuation Method 1 - Multiple of Revenue
One method for valuing a vacation rental management company is the Multiple of Revenue Method. The typical value of your company is often about a 1 x multiple of your trailing twelve months (TTM) "take". The "take" is your commissionable revenue plus all of your ancillary fees (housekeeping, guest fees, etc...). The value of your company is typically plus or minus 10% of this number.
Revenue Method (Low)
Revenue Method (High)
Valuation Method 2 - Multiple of EBITDA
Another popular method for valuing a vacation rental management company is the Multiple of EBITDA Method. Most companies fall in the 3-5 X multiple of your trailing twelve months adjusted EBITDA. An important consideration to take into account are “add-backs”. Add-backs are expenses on the books that would have gone towards profit. Examples of add-backs are personal vehicles that the company pays for, “work trips”, meals and entertainment, etc… These add-backs can get quite subjective and often negotiated.