Case study: how we helped a South Wales letting agency complete a successful sale in under 5 months
- Leon Gorman
- 2 days ago
- 4 min read
Every business sale is different, but the questions owners ask at the start are often the same: how long will it take? What is my business worth? Will the right buyer come along?
In this case study, we walk through a recent transaction where we helped the owner of a residential letting agency in South Wales achieve a successful sale in under five months, from initial conversation to legal completion.
Note: some details have been adjusted to protect the confidentiality of both parties.
The business
The agency managed approximately 250 residential properties across South Wales, with a mix of fully managed and tenant-find services. The business had been operating for over 15 years and had a strong local reputation.
Annual management fee income was in the region of £180,000, with total turnover slightly higher when factoring in tenant-find fees and ancillary income. The business employed four staff members in addition to the owner, who remained actively involved in day-to-day operations.
Why they decided to sell
The owner had been running the agency since its inception and was approaching a point where they wanted to step back. They had no succession plan within the family and had started to feel the weight of increasing regulatory requirements.
They had previously been approached directly by a competitor, but the conversation had not progressed beyond an initial offer that felt too low and came with no structure. The offer came from one of their existing landlords who did not own an agency.
When they approached us, they wanted to understand what the business was genuinely worth and whether a managed sale process could deliver a better outcome.
Our approach
Valuation and preparation
We began with a detailed review of the financials, client contracts, and operational structure. After adjusting for owner-specific costs and one-off expenses, we arrived at an adjusted EBITDA figure, which, in honesty, did not look great. This finding supported our understanding of what type of buyers would be interested and at what level.
Trade buyers can often value lettings businesses on multiples of revenue, as the portfolio will fit into their existing operation, providing a strong margin post integration.
We also identified several areas where the business could be presented more attractively to buyers: the management contracts were largely on rolling monthly terms, but a significant proportion of landlords had been with the agency for over five years, which demonstrated strong client loyalty. Through our support, we could demonstrate a very low churn rate.
We prepared a comprehensive information memorandum that highlighted the strengths of the business while being transparent about areas a buyer would need to consider.
Finding the right buyer
Given our existing network of retained buy-side clients, registered buyers and ability to thoroughly research any area, we were able to attract 15 qualified buyers within the first three weeks.
Within four weeks, we had 10 parties sign NDAs and receive the full information memorandum. Seven of these progressed to formal offers.
Negotiations and completion
The seven offers were all structured with variations. One was a straightforward cash purchase at a lower headline figure. The others offered higher total consideration but included a deferred element tied to a 12-month retention period, and in one case, a 36-month retention period
We helped the seller evaluate all offers beyond just the price, considering factors such as the buyer's track record, their plans for the team, and the practical implications of each deal structure.
The seller chose an offer, and we agreed on the headline terms through a Heads of Terms document. From here, we supported both parties through due diligence and legal introductions.
As with most transactions, challenges arose. Fortunately, the buyer chosen was reasonable, and the seller was understanding where needed. Alongside the representative solicitors, we guided this transaction to a close, just 11 weeks following Heads of Terms.
The outcome
The seller achieved a price they were happy with, the team were retained by the new owner, and the transition was managed without any client disruption. The seller has since taken on an optional hourly rate consultancy role with the buyer for a limited period, helping ensure continuity.
Lessons to take away
Preparation matters. Taking the time to present the business properly made a material difference to the quality of offers received.
Competition drives value. Having multiple interested buyers gave the seller genuine negotiating leverage.
Structure matters as much as price. The headline number is important, but the terms, timeline, and practical implications of a deal are equally significant.
A managed process protects confidentiality. The seller's staff, clients, and competitors were not aware of the sale until it was appropriate to inform them, once the transaction was certain.
Considering selling?
If you own a letting agency, estate agency, or property management business and are thinking about your next step, we would welcome a confidential conversation. There is no obligation, and we are always happy to share an honest perspective on where the market sits for your type of business.
Think Acquisition - connecting property services business owners with serious buyers across the UK.
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