Private equity firms are consolidating property management companies for their steady, recession-proof revenue. Peter Lohmann argues the Property Management Institute franchise model offers an alternative: entrepreneurs can own and operate multiple locations like McDonald's franchisees do, potentially generating hundreds of millions in revenue.
you just saw the Pure Home River consolidation. And in the HOA side, you know, there's these giants like Associa and FirstService Residential and Cam Collective that are out there just buying up every management company they can. And it's all with PE money, all with private equity entering. I'm even seeing these PE groups creating their own funds to just buy up property management companies. They don't even really have a brand and a concept behind it. They just want to acquire all these real estate companies because they see the value in our industry. And how it's recurring revenue, recession resistant, and they love that. And so the big guys are coming. They're trying to do it with money. We feel like PMI is the entrepreneur's answer to consolidation and where we work with entrepreneurs and help them get the win. They, they grow the business as big as they want. They can own 10, 20 franchise locations. They get all the upside. That's what we love about it. It's really—
I mean, there's— if you look at other sectors in franchising. I mean, famously Panera, McDonald's. There's a few areas where you see franchisees with hundreds of locations that they own and operate under the franchise brand, driving hundreds of millions of dollars in revenue. It's actually quite remarkable. So that, that could happen.
