How Much is Your Management Company Worth in a REIT Roll-up Transaction?

In REIT roll-up transactions, valuing the management company can be complicated. In an update to our 2016 article, we re-examine how management companies are valued and analyzed historical trends in management company valuations. 

The updated article explores management company valuations from the following perspectives:

• Why it is important to convert to internal management prior to a REIT going public
• The reasons why a manager has value in a roll-up
• Historical trends regarding management company valuations in REIT roll-up and internalization transactions
• The use of a discounted cash flow analysis to value management companies
• Factors that impact the values of management companies.