{"id":723,"date":"2017-10-25T22:04:17","date_gmt":"2017-10-25T22:04:17","guid":{"rendered":"https:\/\/www.theonsitemanager.com.au\/news\/?p=723"},"modified":"2017-10-25T22:09:36","modified_gmt":"2017-10-25T22:09:36","slug":"difference-listing-selling-management-rights","status":"publish","type":"post","link":"https:\/\/theonsitemanager.com.au\/news\/difference-listing-selling-management-rights\/","title":{"rendered":"The difference between listing and selling your management rights"},"content":{"rendered":"<p>Do you wish to list your business\u00a0\u201cfor sale\u201d or actually list your business\u00a0\u201cto sell?\u201d<\/p>\n<p>There is a difference and here we look to identify some of the issues\u00a0to\u00a0assist\u00a0when\u00a0you decide to place your business on the market.<\/p>\n<p>As with most businesses, buyer appetite continues to evolve &amp;\u00a0management rights are no different. I have written\u00a0various articles\u00a0on\u00a0aspects of the management rights industry\u00a0&amp; think it is important for all business owners to be well aware of how to move forward when it is time to\u00a0sell\u00a0&amp; to also\u00a0understand buyer needs.<\/p>\n<p>Most buyers that I speak to are considering what their exit strategy is before they make a decision on what they will buy. Exit strategy or succession planning\u00a0is something that\u00a0has now become integral in all business operations. As a manager when you choose to sell your MR this planning will probably\u00a0play a crucial part in the sale process, perhaps ensuring\u00a0 sustainable value in your business.<\/p>\n<p>10 years ago, perhaps not even that, a MR business for sale was placed on the internet &amp; enquiry came through. Now\u00a0prospective buyers still view to identify a building\u00a0 &amp;\u00a0then do their own research before they contact the agent. How many of us now, just \u201cGoogle\u201d something\u00a0to gain information or knowledge,\u00a0whereas in the past human contact had to made to find out more. Sometimes buyers own\u00a0research means they\u00a0do not even contact the agent &amp; proceed further. Perception can be reality.<\/p>\n<p>One of the key aspects in selling a Management Rights\u00a0is buyer engagement. This is something that has changed\u00a0considerably\u00a0in the\u00a0past few years.<\/p>\n<p>Advertising a management rights business for sale is one component\u00a0of marketing\u00a0the business and there are certainly various advertising mediums utilised to try and source buyers, however there are also other alternatives\u00a0including database mining &amp; networking. It is surprising how many buyers can be, &amp; are sourced, through the latter two.<\/p>\n<p>You need\u00a0to prepare your business to be saleable, to actually sell, so we can then source buyers to\u00a0buy it, not just view it on the web. The following\u00a0are some of the\u00a0main issues that buyers\u00a0provide feedback to\u00a0us about. Keeping in mind that buyers today may have quite a different approach to\u00a0when you purchased.<\/p>\n<ul>\n<li>For sale figures \u2013 We\u00a0cannot emphasize enough the importance of a P&amp;L for sale as prepared by your MR accountant. Yes, years ago we may have\u00a0got away with vendor prepared or guessed figures however these days are well gone.<\/li>\n<li>Letting appointments \u2013 These are the business and have to be correct. There are a few solicitors and accountants providing advice on ensuring that these are well prepared &amp;\u00a0there is a cost to engage these professionals however if\u00a0your\u00a0appointments (form 6\u2019s) are not correct things can turn pear shaped\u00a0once a contract is signed.<\/li>\n<li>Caretaking &amp; letting agreements \u2013 once again a crucial aspect with the term remaining on these being \u201ctop of mind\u201d for buyers. Anything below 15, even\u00a017 years &amp; questions\u00a0may be\u00a0asked about why they are not topped up or extended. Once again there is cost involved, however this is more crucial now than ever before. Generally a\u00a0lower\u00a0term can then deter buyers or\u00a0be reflected in the price someone is prepared to offer.<\/li>\n<li>Gallery Vie \u2013 I would hope most managers would know what this refers to. \u00a0I am not going to go into the legalities of it as\u00a0I am not a legal practitioner, however owners must take advice from their legal representative to ensure they are aware of\u00a0requirements when they come to sell.<\/li>\n<li>Marketing \u2013 With a holiday building you must know what your market is. Percentage of repeat guests, where you\u00a0advertise, how much time you spend on it, when was your website last upgraded, which websites are your guests coming from etc etc? In the tech world we live in all business owners\u00a0need to have\u00a0an understanding of this, &amp;\u00a0buyers expect managers to know this as standard. You may be familiar with the saying \u201cyou must know your business to run your business\u201d<\/li>\n<li>Procedures manual. \u2013 Do you have one in place which includes all aspects of how the business is run? More buyers\u00a0now ask to see this, or some form of. Recently at an inspection I had a buyer ask the manager\u00a0if they could have a quick glance at their procedures manual. The manager gave a blank look and commented \u201cdon\u2019t really need one\u00a0for this business\u201d Given the asking price was over $1.5m the buyer was somewhat surprised that, with such a high valued business, there was nothing in place and this then gave concern to how things may have\u00a0been run.<\/li>\n<li>Pricing \u2013 This is probably the hottest topic in the market place. Each operation is quite different and will attract different buyers, however it is the one issue that is raised by buyers in conversations I have. There is no \u201cone glove fits all\u201d\u00a0Multipliers are what is used in gauging\u00a0business value,\u00a0however the way this is applied has changed in recent years. Getting the price right\u00a0is crucial to selling.<\/li>\n<\/ul>\n<p><img decoding=\"async\" loading=\"lazy\" class=\"wp-image-3678 size-medium alignleft\" src=\"https:\/\/lindsaypettymanagementrights.com.au\/wp-content\/uploads\/2017\/10\/for-sale-300x169.jpg\" sizes=\"(max-width: 300px) 100vw, 300px\" srcset=\"https:\/\/lindsaypettymanagementrights.com.au\/wp-content\/uploads\/2017\/10\/for-sale-300x169.jpg 300w, https:\/\/lindsaypettymanagementrights.com.au\/wp-content\/uploads\/2017\/10\/for-sale-768x433.jpg 768w, https:\/\/lindsaypettymanagementrights.com.au\/wp-content\/uploads\/2017\/10\/for-sale.jpg 852w\" alt=\"The difference between listing and selling your management rights\" width=\"300\" height=\"169\" \/><\/p>\n<p>Another aspect is \u201cpotential\u201d Many buyers are wanting to be able to grow the business, however as a seller this is something that you may have worked on to maximise your price. As an agent\u00a0we encourage managers to ensure all the boxes are ticked\u00a0to meet buyers needs, however identifying further growth\u00a0areas\u00a0can still\u00a0be important.<\/p>\n<p>I am still surprised in how some owners\u00a0contact me for professional advice on the market and how to best position themselves to sell\u00a0then just\u00a0list\u00a0with another agent who may have\u00a0given no advice at all. Just like your solicitor, accountant &amp; lender a MR experienced agent is a crucial component in the process. Ensure you engage\u00a0an agent\u00a0that sits down with you to consider all aspects of your business who\u00a0can\u00a0then identify where your business sits in the marketplace &amp; work on a\u00a0marketing plan that should see you sold. Our role is to provide market feedback and relevant factors that will assist in seeing a sold sign on your business.<\/p>\n<p>Information supply is now also another factor. Buyers are looking for information to ensure transparency. When\u00a0we list a property\u00a0we gain as much information as possible. This is the way it should be. You have appointed an agent to sell for you so the last thing you want is an agent that asks for additional information every 5 minutes. The more we have the better we can ensure the continuity of flow.\u00a0With the immediate world we live in\u00a0consumers expect instantaneous responses.<\/p>\n<p>So back to my opening comment the difference is\u00a0a listing agent will list your property at the price you want and place it on various websites hoping for buyers to come to them. They will not necessarily gain all the information they need in the hope that they will snag a buyer. You\u00a0may generally not hear much from this agent, however at least you are out there and you might, just\u00a0might sell?<\/p>\n<p>Alternatively\u00a0you can list your business with a \u201csales agency\u201d This agency will have industry experience, knowledge of the market, &amp; will provide practical &amp; professional advice to maximise the\u00a0opportunity of a sale. This agency will be reputable amongst industry professionals &amp; offer a personalised service with regular feedback &amp; contact along with various marketing\u00a0initiatives to ensure your business has maximum exposure to all available buyers.<\/p>\n<p><a href=\"https:\/\/lindsaypettymanagementrights.com.au\/\" target=\"_blank\" rel=\"noopener\">Lindsay Petty Management Rights<\/a><\/p>\n<p>Lindsay Petty<\/p>\n<p>Director\/Sales Specialist.<\/p>\n<p>Lindsay Petty Management Rights<\/p>\n<p>email:\u00a0<strong>lindsay@lpmr.com.au<\/strong>\u00a0or mobile:\u00a0<strong>0407 029 138<\/strong><\/p>\n<p><em>Lindsay Petty\u00a0owned his own management rights for a number of years and previous to this has run a number of resorts on the Gold &amp; Sunshine Coasts. Lindsay is\u00a0still actively involved in management rights operations and has now been selling in a full time role for more than\u00a06 years\u00a0facilitating numerous\u00a0sales in various price ranges &amp;\u00a0regions.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Do you wish to list your business\u00a0\u201cfor sale\u201d or actually list your business\u00a0\u201cto sell?\u201d There is a difference and here we look to identify some of the issues\u00a0to\u00a0assist\u00a0when\u00a0you decide to place your business on the market. As with most businesses, buyer appetite continues to evolve &amp;\u00a0management rights are no different. I have written\u00a0various articles\u00a0on\u00a0aspects of the management rights industry\u00a0&amp; think it is important for all business owners to be well aware of how to move forward when it is time to\u00a0sell\u00a0&amp; to also\u00a0understand buyer needs. Most buyers that I speak to are considering what their exit strategy is before they make a decision on what<a class=\"more-link\" href=\"https:\/\/theonsitemanager.com.au\/news\/difference-listing-selling-management-rights\/\">Read More &rarr;<\/a><\/p>\n","protected":false},"author":1094,"featured_media":724,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mbp_gutenberg_autopost":false},"categories":[7,4],"tags":[],"_links":{"self":[{"href":"https:\/\/theonsitemanager.com.au\/news\/wp-json\/wp\/v2\/posts\/723"}],"collection":[{"href":"https:\/\/theonsitemanager.com.au\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/theonsitemanager.com.au\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/theonsitemanager.com.au\/news\/wp-json\/wp\/v2\/users\/1094"}],"replies":[{"embeddable":true,"href":"https:\/\/theonsitemanager.com.au\/news\/wp-json\/wp\/v2\/comments?post=723"}],"version-history":[{"count":1,"href":"https:\/\/theonsitemanager.com.au\/news\/wp-json\/wp\/v2\/posts\/723\/revisions"}],"predecessor-version":[{"id":725,"href":"https:\/\/theonsitemanager.com.au\/news\/wp-json\/wp\/v2\/posts\/723\/revisions\/725"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/theonsitemanager.com.au\/news\/wp-json\/wp\/v2\/media\/724"}],"wp:attachment":[{"href":"https:\/\/theonsitemanager.com.au\/news\/wp-json\/wp\/v2\/media?parent=723"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/theonsitemanager.com.au\/news\/wp-json\/wp\/v2\/categories?post=723"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/theonsitemanager.com.au\/news\/wp-json\/wp\/v2\/tags?post=723"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}