There are two different ways that we acquire property management companies at HomeRiver Group. If you’re interested in selling to us, you can do it in the way that makes the most sense for you. As you will see, it depends on how long you’ve been in business and where you see yourself fitting into the property management industry in the future.
The HomeRiver Group Platform Acquisition Process
The first method that we offer to property management companies is the platform acquisition. In this scenario, we buy the company, but the senior management team that’s selling to us will stay in place and partner with us. In a platform acquisition, we pay the purchase price in primarily cash, with a portion also paid in HomeRiver Group stock. This makes the seller our partner, and it also helps them to diversify their business investment a little bit.
The HomeRiver Group Portfolio Acquisition Process
Alternatively, we acquire properties using portfolio acquisition. In these cases, the company will sell its portfolio to us and the existing senior management does not stay in place. We pay for the company in all cash, and the current owners can take that and do something else. We also set up referral agreements once the deal is done and they become the company’s former owners. If they send properties our way to manage because of their relationships and long careers in the property management field, we’ll give them a commission.
How to Decide Which Way to Sell
Joining HomeRiver Group through the platform acquisition process is something you should do if you are still energized by property management and you want to stay in the business as part of something bigger and more innovative. We bring all the best and brightest operators around the country together. If you’re excited about that, and you’re interested in taking a consistent approach to an organization, and you desire a branded national property platform, you’ll want to join us in this way. If you have been in the property management business for a long time and you’re ready to move on, you might want to talk to us about portfolio acquisition instead. In the past, people selling to us in this way have been turnkey providers who are simply ready to do something else.
We want to make this transition as easy as possible for you. Whether you see yourself as a platform seller or a portfolio seller or you’re not sure, contact us at HomeRiver Group. We’d love to talk to you.