If you’ve heard about a company sale in the news, the proprietor must have given up a part or a whole of its management rights. Preparing these businesses for sale in the marketplace needs the expertise of the management rights industry. Consider the following when selling your management rights:
Formalities of Sale
Identify each asset to be sold with the business. Estimate its value, and consider whether you have a clear title and proof of ownership loans owing on the estate. Remember the buyer will take on all of the responsibilities of these assets.
Your license and trust account audit reports must be up to date. This allows full transparency of all earnings and presents a good picture for your prospective clients.
Unit owner charges should be reviewed yearly and kept in line with PAMD agreements and the trust account system. A common mistake is for the manager to increase these charges but not have those changes reflected in the accords.
Hiring an accountant helps you trek through those complex tax rules. You don’t want to be paying additional taxes, don’t you?
Profit and loss reports from the last two years are important for buyers. Make sure they are up to date and cover this period.
Wages are a contentious expense item. The sales profits are calculated on the basis of all wages (excluding the proprietors). Therefore it’s best to list each job and other pertinent information including responsibilities, hours worked and wages. This will give to clarity to potential buyers.
You might find these requirements tedious, but they’re necessary for full proofing whether you may have missed something. It’s better to tackle inconsistencies early on than ranking on your buyers’ trust.