You know, I, as a baseline starting point, it's really a multiple of, of commissions that the business is earning.
Acquiring Minds
Buying for Brand (Then Growing 4x)
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Define, define commission, please.
Commission, management commission that that owner or that that manager makes from those bookings. The vast majority, I would say 99 of the, of these businesses are driven by management commissions. Ours is not. And we can, and I can talk about, you know, why that's the case, but most people are just driven entirely by the commission they earn for capturing the booking.
They don't really have other revenue streams tied to the owners or the guests. And so as a multiple off those commissions, if you're, you know, if your management commission is 25 or 30 or percent or whatever it is, we're looking at the, you know, really the trailing twelve and you know, using a one and a quarter to one and three quarters multiple for those businesses.
And then as you look further, you know, where is the bit, where, where is the portfolio located? How new are these contracts? You know, is there a team in place?
Generally not all of these things, you know, can, you know, move that, move that number up or down.
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Rents a home for 500 bucks for one night. Let's say their, their fee is 25% so they earn $125 for that. That's kind of their, I would consider that their top line revenue from that.
Right, from that. Okay. And so these businesses are sold on a multiple of that number of the top line revenue as opposed to bottom line earnings broadly.
I've seen businesses trade, you know, based, you know, for a price per contract. I've seen them trade, you know, on multiples of top line revenue. I've seen them trade on multiples of sde.
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