Tabula,Wentworth holdings may be of interest as a close...

Tabula,

Wentworth holdings may be of interest as a close comparable. More or less straight property management: ~8,300 properties, 13.2m PM revenue, 2.94m EBITDA. Sold for $18.7m. In terms of their roll, RUN is just under twice the size (estimate roughly 14,600 properties based on implied churn), and similarly about double the revenue and EBITDA.

Property management business would be worth around $38.5m gross applying a slightly higher multiple for size premium, which is about market cap, but once you factor in the debt it looks expensive - although then again a lot hinges on what you think AgentPlus, the growth in the sales business and the other bits and piece are worth.

There's definitely a roll-up story, but not sure if they can get the same kind of leverage as a GXL. Landlords don't tend to be as 'sticky' or as price insensitive as domesticated animal owners, and from what little I know, there is much less competition (hence lower acquisition multiples) in the market for veterinary practices given the capital outlay required, and lack of other scale players.

Also worth considering what the actual useful life of a RMA is - the accounting amortisation versus the economic amortisation is different and there could be a big gap between balance sheet value and 'true' value depending on how long they actually last. I.e. if an RMA is fully amortised but still generating management commission, more drops down to the EBIT line.

Cheers,

Xavier