What Happens After You Sell Your HOA Management or Accounting Company? Here’s the Real Story

Background

Selling your HOA/condo management or accounting company doesn’t always mean riding off into the sunset. Whether you're selling to a larger management company or a private equity-backed group, you might still be part of the business afterward, just in a new role. Some owners stay on as CEO, others shift into employee or consultant positions, and each setup comes with its own benefits, trade-offs, and paperwork.

Post-Closing Roles

In one common scenario, you’re selling and becoming part of a larger platform or parent company. This means your company joins a group of other HOA firms under one umbrella. Instead of keeping ownership in your original company, you might get equity in the parent company. To make this happen, you’ll typically sign an Equity Subscription Agreement and an Operating Agreement Joinder that connects you to the platform’s governance. If you stay on as CEO, you’ll keep leading the day-to-day, but now with input from a broader team. As an employee or consultant instead of CEO, your role shifts to support mode, with less pressure and less control.

Another option is to sell most of your company but hold onto a minority stake (selling while maintaining a majority stake, by contrast, is an extremely rare set of circumstances). This keeps you directly invested in your own business’s success. You’ll sign an Equity Rollover Agreement and a revised Operating or Shareholders’ Agreement that spells out the new rules, who’s in charge, and how decisions are made. You might keep your CEO role, now reporting to a board. If you take on an employee or consultant role, you’ll still be involved, just not calling all the shots. The big upside? You could see another payday if the company sells again later. Most buyers will promise a significant subsequent payday, and it's up to you and your advisors to gauge their ability to generate such a result.

You might also choose to fully cash out, selling 100% of the business, but continue helping out in some form. This often happens when an owner wants a simpler life without leaving the company completely. In that case, you’ll likely sign an Employment Agreement or Consulting Agreement, depending on how involved you want to be. Staying on as CEO means you're still leading operations, often with performance incentives. An employee role lets you stay hands-on but more focused. Consulting is a great option if you want flexibility and less commitment, while still sharing your expertise.

Understanding the Impact

Whichever path you choose, it’s important to understand what you’re agreeing to, both legally and professionally. Are you chasing long-term upside? Planning to step back? Want to stay in the mix but not at the wheel? Your answers will shape the documents you sign and the role you play post-sale. In the fast-changing world of HOA and condo management, selling your company isn’t the end, it’s just the next chapter.

For more information on the HOA management industry, valuation metrics, or other questions, please contact contact@camadvisors.co or visit https://www.camadvisors.co/‍

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