DECEMBER 9, 2020
Episode 7: Full Circle with Amy Karns
Welcome to the Property Manager Broker Podcast with your hosts, Brad Larsen and Phil Mazur. Today’s guest is Amy Karns, a property management company operator with a lot of experience getting into the business, building a business, selling a business, moving and re-establishing a business, and potentially getting another business ready for sale later on down the road. Amy has come full circle a couple of times in the property management company world, selling and buying into an organization. This is a really great conversation with Amy talking through some things like multiples, hiccups, and some really great tidbits, tricks, and tips to help anyone listening. Enjoy!
Amy discusses her company’s purchase and sale, the exit terms she negotiated, and some challenges she faced along the way. Amy talks through the owner’s finance contract with the buyer and the issues she had getting the agreed-upon funds per the contract.
Listen as Amy talks about her new company, getting it ready to sell mindset even though she isn’t ready to sell and what she will do differently this time. Amy speaks about the pros and cons of owner financing versus cash payout and selling just the contracts instead of the whole company.
Amy chats about what she would change if she could go back three years in her new company, what she believes the property management industry will look like in ten years, and a piece of advice for a property management company that is thinking of selling.
In this episode:
[02:36] Amy shares her background and what she is doing now.
[03:33] Phil asks Amy if she thought she got a fair deal in 2006 when she purchased the full company and in 2016 when she sold the full company.
[05:45] Amy discusses the terms of exiting the company.
[07:10] Amy shares some hiccups she faced along the way.
[09:19] Amy talks through the owner financing option she had with the buyer.
[10:05] Listen as Amy speaks about the challenges that happened, starting with being audited by the IRS and what happened to the documents that were being scanned.
[12:38] Do you know what a trailing policy is?
[14:58] Amy shares that getting the payments back on track from the buyer became very contentious.
[16:26] Amy talks about what would have happened if she would have had to take the company back.
[19:13] Amy chats about what she will do differently when she sells her current company in the next five years.
[21:32] What was your emotional state when all of this was happening?
[23:11] Amy shares why she didn’t sell just the accounts instead of the entire company.
[25:46] Amy talks about staying with the company for six months after the sale.
[28:27] Phil discusses the uniqueness of how Amy sold her company and the fear that she wouldn’t get paid the full amount.
[30:46] If you are thinking about selling, look at the pros and cons of offering owner financing versus cash payment.
[33:11] Amy discusses some things she did with the mindset of getting the business ready to sell.
[35:58] Amy shares that her company has huge revenues because their overhead is so low.
[38:06] Phil says there is no drawback of approaching your business with the mindset of getting it ready to sell, even if you don’t plan on selling.
[39:39] Amy talks about what she would change if she could go back three years and start over.
[40:49] Looking ten years in the future, what do you think will be different in the property management industry?
[42:48] Amy shares a piece of advice for a property management company that is thinking about selling.
[44:22] Phil believes that the culture of any company will follow the leader.
[46:28] Thank you, Amy, for being on the show!
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