Over recent years we have witnessed a rush of acquisitions and mergers in the short-term rental marketplace. Companies such as Vacasa, Sykes Cottages, Awaze, VTrips, OYO and others have regularly made the news approaching 200,000 properties collectively, a fraction of the available market (circa 1.5%). There is a lot of headroom for more significant aggregation and company growth.
Three types of markets allow a manager to grow faster than simple organic marketing methods.
1. Acquisition of entire professional management companies, whether leased or commission-led properties, full service or just agency marketing and connected to operational companies.
2. Acquisition of the contracts only from the above-mentioned companies and not to become involved in share exchange/sale or employment and other contract liabilities.
3. Acquiring owner or Airbnb and/or co-host contracts run by individuals or small lifestyle managers.
With 200,000+ pro managers and up to a complement of 800,000+ "managing hosts", the market for buying and selling is "thin? Where are the buyers? Where are the sellers? Most professional managers or Hosts are smart, hard-working entrepreneurs. Many have financial backgrounds with a good perspective on business. Most can negotiate a deal themselves. They may need some handholding and background data to plan their exit as the deal progresses; however, direct connections reduce brokers’ fees, and small, simple contract agreements can often be handled directly. VRMX is the connector to facilitate interest.
The problems, in general, are fivefold, which illustrates the challenge of M&A and the solution, which is VRMX.
b) Who to sell to (or to buy from)
c) The process from interest to exit
d) Timing on both sides of the deal
e) Cultural aspects of the deal
The Solution (VRMX) ~ Vacation Rental Marketplace Xchange
Technology, combined with transactional marketplaces, has revolutionised the world. From Amazon to AliExpress, Rightmove, Zillow, MLS etc. This is why VRMX.io, the M&A marketplace, has been created to match buyers to sellers, offer professional services as needed, and provide documented advice. EXCEPT: This will be a subscription marketplace, as it used to be before the commission creep and intermediary control happened (think Homeaway, Airbnb etc.). Regular newsletters on valuations and public deals will support the subscription to VRMX.
VRMX allows sellers to anonymously advertise their businesses, contracts, and acquirers to see what is on the market and deal directly.
No commissions, deal direct, a simple subscription fee and a raft of supporting online information.
The company is offering free subscriptions to early adopters. All you need to do is to sign up with your email and name on this form, and you will be registered. You will need to signup formally in the next few weeks, but this gives you first mover advantage on accessing or selling inventory, business or seeking investment.
Add your details here. Or use the QR code.