Residential home staging pros & cons
January 11, 2021
by a searcher from Brigham Young University in Yorba Linda, CA, USA
I'm trying to think through the pros and cons of acquiring a small (<$1m) home staging business and would love to hear if anyone has any thoughts (good or bad) on the industry. One thing I'm worried about is that EBITDA may not directly translate to cash flow, due to the need to constantly replenish your inventory of furniture. Broker is trying to pitch it as recurring revenue, but in reality looks like more than 50% of revenue each year is from new customers.
from Purdue University in Phoenix, AZ, USA
from University of Minnesota in St Paul, MN, USA
ignore the big title of the video. He made some good points on how residential home buyers really make a decision to buy the home online and walking the place is less important. Additionally he builds out some of the market you are looking at; ie virtual walk through versus guided tour video.
Also, I would push on the customer list. If the business has contracts with a large local/regional real estate agent firm then maybe you can argue reoccurring revenues from an exclusivity standpoint. If they don’t have agreements of exclusivity with real estate agents then it feels like a one-time decision by sellers via the internet.