Private Equity Isn't Smarter Than You. They Have an Acquisition Engine

Private equity buyers are not smarter than independent property management owners. They have one thing most owners do not have yet: a repeatable system that finds companies, sizes them up and closes, over and over.

How does a private equity buyer approach a property management owner?

Right now, somewhere in your market, someone from a private equity firm is on the phone with a property management owner who is thinking about retiring.

He has never taken a 2am maintenance call. He could not find your city on a map. He has a spreadsheet, a script, and a list of owners who are getting tired, and he is working his way down it.

I can tell you exactly how that call goes, because I used to be the one making it.

What is the acquisition engine?

Private equity buyers have an engine. It is a boring, repeatable system that finds companies, sizes them up and closes them.

After PURE Property Management bought my company, I became their Director of Acquisitions. More than 50 transactions and $100 million in deals later, I knew that system down to the last bolt. I am using it right now to buy companies of my own.

Can an independent owner build an acquisition engine too?

Yes. None of it is beyond an independent owner with a good business. It is simple once you can see the parts, and the engine has five of them.

Frequently asked questions

Are private equity buyers smarter than independent property management owners?

No. They have a repeatable system, not extra intelligence. They find companies, size them up and close, over and over.

What is an acquisition engine?

It is a boring, repeatable system that finds companies, sizes them up and closes. It has five parts.

Can an independent owner use the same system to buy companies?

Yes. None of it is beyond an independent owner with a good business. It is simple once you can see the parts.

If you are thinking about buying a property management company, learn more about Built to Acquire, my three-month group program.