Management Rights and Preparing the Business for Sale

Management Rights and Preparing the Business for Sale

Preparing your operation rights business for sale is a major consideration and is clearly as important as buying a operation rights in the first place. Visit us

I’m frequently asked questions about the process, and to note on the what makes the process easier and briskly. Well the answer to this is no surprise; there’s no easy and simple answer but there are some principles that a good operation rights broker can help you with.

The selling process starts with presenting the business AND the property for trade. The property of course must be as well presented as it can be, but there’s a limit to what you can do. Occasionally prospective purchasers of operation rights will say to me that they love the property but detest the area or love the area but detest the property or really want an redundant bedroom or a bigger office. There’s an absolute verity; you cannot change the number of bedrooms or the position or the size etc. So it’s important that you and your broker take time to insure that any prospective purchaser understands what the business and property has to offer BEFORE actually walking in the frontal door. In confluence with my merchandisers I always prepare an Information Statement as part of the service to inform any prospective purchasers as much about the property as is possible. This of course is about figures but a lot more as well. An accurate description of the area, its amenity, distances to colorful services, letting history,etc.

This saves time, manages prospects and ensures, as much as possible that a prospective purchaser of operation rights does not anticipate to move the business to another exurb!

And this applies to the business as well as the property. Some trade deals will fail to complete because the property cannot be valued to bank prospects or the P&L has left GST in the numbers or added income that cannot be substantiated etc. Although a formal valuation of the business isn’t really necessary it’s important that if an income group is linked there’s an accurate understanding of what that’s and means to the business. AND more importantly that there’s a reasonable anticipation that it’ll be much the same coming time or that it’ll increase or decline and under what circumstances. The same applies to charges. If there’s any concern about any figures that are to be presented to a prospective purchaser also it may be wise to get a formal confirmation of the P&L. Preparation of your operation rights business for trade is veritably important and there should be as many surprises as possible.

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