What makes one business worth more than another?

By inspecting a number of properties, you will get a feel for factors impacting value. Management and letting businesses are generally valued based on a multiple of future maintainable earnings. 

What dictates the “multiple”?

Listed below are some factors which may have an impact on the price earnings multiple and therefore the value of the underlying business:

  • Location of the complex
  • Length of management and letting agreement
  • Body corporate history
  • Age of the complex
  • Future growth prospects
  • Quality of existing management
  • Labour requirements in managing the complex

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