Why Management Rights Experts?

The purchase of Management Rights can be a complex process which requires a significant investment of your time and money. It is therefore vital that you engage relevant industry experts to guide you through the stages and ensure a smooth purchase process.
Their experience will assist in identifying any real or potential issues. If you’re contemplating using your current team (solicitor, accountant or lender), then it is advisable to ascertain that they possess and demonstrate the appropriate expertise in this area, that is they are Management Rights Experts.
What your key advisers will do for you:-

Your Accountant Management Rights Experts.

Responsible for doing the following:

Checking best structure for your set of tax circumstances (Solicitor is also involved as legal issues need to be considered).
Ensuring that the income/profit stated by the seller is correct and verifies this for the bank. Again you should check with the lender/bank to ensure that they recognise them and won’t need any further verification done.
After the purchase they can be involved in compulsory Trust accounting reports for the OFT

Your solicitor Management Rights Experts.

Your solicitor may provide advice on matters including:
your borrowing structure
the names in which to purchase assets
setting up company and trust structures
The most important task they undertake is a ‘Legal Due Diligence’ as part of the purchase process. This includes reviewing:

the contracts
the Management Rights agreements and any extensions, assignments and variations
the By-Laws and Community Management Statement
the Body Corporate records.

The Due Diligence report will be provided to both you and your lender. Often if the lender does not not recognise the lawyer they may undertake their own legal due diligence at you expense (that’s right you will pay for 2 “Due Diligence”. If any issues are identified during this
process, your solicitor will discuss them with you and provide guidance on how to manage them.
The role of your solicitor doesn’t end at settlement. Once you own a management rights business, you will probably need their assistance for things like:
exercising an option
seeking a variation in your agreements
seeking an extension in the term of the argument
dealing with complaints or issues

Your lender or finance broker Management Rights Experts.

Not all banks have managers who specialise in purchasing management rights. So look for a finance broker or a bank who has built a reputation in this specialist area, and make sure they have a real understanding of the industry, current issues and values.
If you’re new to Management Rights, you should look for a finance broker or lender who can put you in contact with other key industry advisers. They should also be able to give you an indication of how much you can borrow, provide you with a funding scenario for any options you’re considering, and introduce you to other financial specialists you may need to help run your business.

David Manson

Been helping people with Management Rights sales since 2004. I enjoy helping people making the transition to running their own business. I have worked in health as a caregiver and have a interest in photography, golf, tennis and AFL

You may also like...