Northeast Rental Management Firm Sold for $265K After 2 LOIs
Rachel Horner
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2 min read
About the Business
Industry: Real Estate Services – Vacation, Seasonal and Long-Term Rental Management
Location: Northeast
Size: $500K–$750K in annual revenue, $50K–$100K in cash flow
Sale price: $265,000 in total consideration (asking price: $289,000)
Listing to signed LOI: 56 days
Signed LOI to close: 76 days
The Challenge: Retiring Without Leaving the Team Behind
The owner was ready to retire as the technology in her industry kept changing. She wanted a buyer who would keep her staff in place.
56 Days to a Signed LOI: Two Offers, One Fit
What happened at every stage
Valuation: Baton set the asking price at $289,000, about 3 times cash flow, including the company's vehicles and equipment.
Buyer Outreach: 45+ buyers viewed the listing and 20 opened the data room. The owner met 3 buyers on calls, including the eventual buyer, who joined Baton 8 days after launch.
Offer Selection and Negotiation Support: The winning buyer first offered $250,000 with $25,000 down, and after the Baton advisor sent a counter, the signed LOI landed at $265,000 with $35,000 at closing. A second LOI came in at similar total consideration, and the owner chose the buyer she felt was the better fit.
Diligence and Closing Support: The Baton advisor set up 15-minute weekly check-ins and a shared diligence tracker. The parties signed the purchase agreement before diligence finished, with closing contingent on it, and the deal closed 76 days after the LOI.
The Results
The buyer is a family-owned property management company expanding into a new part of the region. Through Baton's process, the business:
Sold for $265,000 in total consideration, with $35,000 at closing and the balance paid over time from the business's revenue
Received 2 LOIs within 56 days of listing
Closed without a bank or SBA loan
What's next for the owner?
The owner is moving into retirement, and her team agreed to stay on with the new owner.
Advice and Lessons for Future Sellers
Counter the first offer. One counter added $15,000 to the price and $10,000 to the cash at closing.
Choose on fit, not just price. With two similar offers, the owner picked the buyer she trusted with her team.
Keep diligence on a schedule. Short weekly check-ins kept a deal with no lender on track to close.