HOA Purchase Question

**Steamboat** · 06-09-2008, 10:10 AM

I'm looking at acquiring an existing HOA business. The current owner has an asking price of 2x the current income level. Is this standard for this type of service based business? I was thinking 1x was the standard.

Thanks.

**jamesww** · 06-09-2008, 04:24 PM

Originally Posted by Steamboat

I'm looking at acquiring an existing HOA business. The current owner has an asking price of 2x the current income level. Is this standard for this type of service based business? I was thinking 1x was the standard.

Thanks.

The correct way to value an HOA is by subtracting expenses and then dividing that number by .30.