Selling During Industry Consolidation: Why Timing Matters More Than Ever

The HOA and condo management industry is in the midst of a multi-year consolidation cycle. With dozens of active acquirers (many backed by private equity), owners of management companies are receiving inbound interest and wondering whether to sell now or wait.

But as consolidation enters a new phase, the decision isn't as simple as “sell or hold.” It’s about understanding how buyer behavior is evolving, how business value is changing, and what’s required to stand out in a competitive market. Here’s what to know about today’s M&A environment and how it affects your timing.

A New Phase in Industry Consolidation

The first wave of consolidation in the HOA/condo management space was marked by private equity-backed platforms acquiring smaller firms to build regional or national footprints. Many of those platforms are now approaching maturity. Their next step? Acquire each other.

That raises the bar. As platforms grow larger, they require bigger, more sophisticated acquisitions to move the needle. Companies with strong EBITDA, recurring revenue, and clean operations will get the most attention. Average-sized firms with less scale may struggle to remain relevant in this next phase unless they take action now to grow and professionalize.

There’s Still a Market for Smaller Companies

Even as larger platforms consolidate, there continues to be a healthy base layer of private investors, family offices, and smaller consolidators looking to acquire management companies that may not be “platform size” today.

These buyers can offer attractive terms, especially if your company has stable margins, recurring revenue, and some growth. That said, this group tends to be more price sensitive and may structure deals with more earnouts or deferred payments. And over time, even this buyer pool will raise expectations as the industry matures.

The takeaway: the buyer pool isn’t going away, but it is getting more selective. That’s especially true for companies that stay the same size and don’t improve profitability.

Why Growth and Profitability Still Win

If you’re not ready to sell today, the best thing you can do is focus on becoming a more attractive acquisition target. That means:

• Growing your portfolio (unit count, revenue, and margin)
• Reducing owner dependency
• Cleaning up financials and contracts
• Establishing scalable systems and processes

Growth creates optionality. It puts you in a stronger position whether you sell to a base-layer buyer now or pursue a premium platform exit in the future. It also helps mitigate the risk of market shifts. If M&A demand slows, you’ll have a more resilient, cash-generating business to fall back on.

Final Thoughts

Consolidation in the HOA management industry isn’t slowing down, but it is evolving. As platforms scale and private equity firms aim for larger targets, average-sized companies must decide whether to sell into today’s market or invest in becoming tomorrow’s high-value deal.

Either path can be successful. But standing still is the real risk.

At CAM Advisors, we help management company owners understand the M&A landscape, assess their company’s readiness, and make informed decisions about timing and growth. If you’re thinking about a sale or just want to be ready, we’d love to help.