HOA Management Company Business Sold

HOA Management Company

BUSINESS NAME: HOA Management Company
LOCATION: Charlotte, North Carolina
INDUSTRY: Property Management
BROKER: Adam Petricoff

Situation

The founder and owner of a HOA management company had passed away after a long illness. His wife, who also worked at the business, had saved a letter from Adam Petricoff from years ago regarding his successful sale of another HOA management company. The woman reached out to Adam Petricoff for advice and guidance as she sorted through the many aspects to settle the estate and to help her prepare to move forward.

Petricoff and other advisors offered advice and support to assist her in this difficult time. About a year later, in August 2024, she was ready for him to broker the sale of the homeowners association management company.

Marketing the Homeowner Association to Secure a Sale

Adam Petricoff has experience in successfully marketing and brokering the sale of HOA management companies. He prepared the Confidential Business Review (CBR) to launch the proactive outreach and within two weeks shut down the process after receiving more than 180 signed non-disclosure agreements to gain access to more information about the business listing. There was significant interest from individual buyers, private equity firms, and other local and regional HOA management companies.

Effectively Managing the Process to Identify the Right Buyer

With so much interest, Petricoff was focused on efficiently and effectively narrowing the field to identify the most qualified buyers and the best fit to acquire this HOA management company in Charlotte, North Carolina. Petricoff applied his proven and effective process to narrow down the qualified prospective buyers and received 22 offers. Each offer and buyer were vetted to then move to the information sharing and reviewing process while verifying their financial qualifications. Petricoff coordinated submitted questions from all interested parties for the seller to respond to and all responses were shared in a secure, virtual ‘Data Room’. Petricoff and his transaction manager, Lauren Stewart, assisted the client in preparing the responses.

After the FAQ information sharing process, the field narrowed, and management meetings were conducted with the remaining qualified prospective buyers to evaluate the best candidates to acquire the HOA. Best and final offers were submitted and reviewed, and the preferred buyer was chosen.

The Result

The buyer who emerged as the preferred offer was a strategic buyer, a private equity firm seeking to expand its portfolio geographically into North Carolina. The attorneys representing the seller and the buyer had completed hundreds of similar transactions which facilitated a fast and highly-efficient closing process.

Their offer was received at the end of October with an expressed interest in closing by year end. Business Broker Petricoff and his transaction manger facilitated, guided, coordinated, and navigated all the various roadblocks and hurdles that commonly arise (plus navigating availability of all required parties given all major holidays) to bring the deal to close on 12/31. Both the buyer and the seller were happy and appreciative of ending the year with this deal in the books, and as a result of the highly competitive process, the final price was more than 50% over asking price.

“Adam and Lauren are an amazing team of true professionals. Our company has acquired over ten companies to date through various processes and this team is the most organized, responsive and transparent individuals in the business brokerage world we have worked with to date. I highly recommend Adam and his team to help business owners with representation and advice in selling their business as they run a very efficient transaction process that results in outstanding outcomes for all parties involved.”

Brandon Arnold, Founder Bundled Management Solutions LLC and Buyer

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