Hi Fellow Search Funders,
I have an opportunity to acquire a stake in rapidly growing vacation rental management business with $8M top-line and $3.4M EBITDA.
For those familiar with the space, I'm looking for insight on the following:
1. What are typical multiples in this space - I assume higher than property management? My research indicates 4-7x is typical for the smaller cos, but what about the larger ones with massive net margins and growth.
2. If we grow to $8-10M EBITDA over the next 3 years via acquisitions, What might the multiple look like then (10-12x within reason)?
3. What are some good benchmarks for gross and net margins, along with expenses line items as a % of revenue? Who has the best data / reports on this?
Thanks in advance!
Vacation Rental Management Valuation Multiples & Benchmarks?
by an investor from Indiana University at Bloomington
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