Post Corona Business Opportunities
Largest UK property management company
Pillow plans to build the UK's largest property management company 6 months after the pandemic finishes. We have proactively started compiling a database of management agencies that are interested in existing. Many will not make it through and many will see the value of their business drop by 75%.
We are not taking advantage of any businesses, we are offering them a fair payment for their company under Deferred Consideration payment terms. This allows them to exit rather than close the business and ensure all their customers do not get left unserviced and lose money. It is a really win for business owners considering the circumstances.
Pillow's strategy would be to get a nationwide network of management companies, or more specifically their property portfolios and bring them all under the Pillow brand. This portfolio will then benefit massively from the network effect, economies of scale, increased efficiency, and greatly reduced costs. The clients who own the properties will then be in the strongest position to come out of the pandemic and generate the maximum amount of bookings vs a smaller agency or going it alone. All built around our Core Value of #StrongerTogether.
Investment level: £500k - £1m. Equity in Pillow
Scottish Holiday Home Chain
Pre pandemic, Pillow was in negotiation with several holiday lodge sites in Scotland to acquire them via a Deferred Consideration strategy. On 10th March we decided to postpone all deals until we had some certainty in the market regarding future occupancy rates.
We had contacted every site we could find offering them a deferred consideration deal. 95% said no. This will not be the case a few months into the pandemic and bookings are nonexistent. Not only will many owners be open to this, but the business valuations will also be greatly reduced. This is the perfect opportunity to acquire quality holiday home sites well below market value.
Again, I stress, this is not about profiteering, it is about allowing owners to exit with their pride in tack and with no debts. Pillow will acquire and take over any financial commitments to allow them to move on without going bankrupt.
Our plan is to deploy a 'Buy and Build' strategy to build a group of branded, profitable and standardised sites in Scotland with the target of this doubling in value within 2 years.
Investment level: £500k+. Equity in investment company