Cost to Purchase an Existing Property Management Company?

[Account Closed]

Next week I will be meeting with the owner of a property management company in my area.  I've been trying to find compatibles to value the company, but I am falling a bit short.  I've talk to another property manager who purchased their company for 1X annual gross revenue.  I've looked online and have seen others that have gone for less than 1x.  I haven't met with the owner yet to find out the specific details.  I know I need to find out what type of contracts he has set up with the current customers.  I was looking for some insight on what else I need to get for information, how to value it, and what is a good defined multiple for gross revenue in todays market.

[Luke H.]

Neat situation: I think every industry is different, but doing some online research might help.  I'd be interested to know the profit margin and amount of work you have to put in. The debt they are carrying and why they want to sale.