Hi guys,

Long time lurker here. First, I want to tell you guys thanks for all the information you've provided throughout the years.

A large property management company has recently contacted me about potentially acquiring my property management company, namely to acquire the contracts that I currently have. However, I am not sure what would be a fair sale/asking price, and I was wondering if I can get some help or input regarding this matter :)

I own a small property management company that look after ~50-60 properties throughout various suburbs of a large metropolitan city. The properties are all single, family styled houses (for the lack of a better term), and the average rent is ~$1200-$1500/month for each property. That said, after all related expenses paid, my net income is roughly 60-70k/year depending on the vacancy of the properties.

The talk between the larger company and myself has been preliminary so far, so we haven't talked about a sales price yet. However, I would like to have a figure in mind when we get into the nitty gritty details.

I have done some research regarding sales of small business, and people people tend to advocate that a good sales price would be 2x-3x of the business' yearly, net income. Therefore, I think $120k would be a fair asking price? Or am I aiming too high or perhaps too low?

I want to thank you guys in advance for any tips, help, or advices :)