Business Opportunities

We are often asked to compare the management rights business with other types of businesses & though we specialize in the management rights sales, this industry does have some benefits over other general business

Put simply Management Rights is the name given to the business of living in and caretaking a unit or townhouse complex with the added bonus of running your own business.

Management Rights Business Benefits

• The business owners are able to work from home
  (unit with office in the complex).
• Flexible work times to suit.
• No stock to purchase or control so no cashflow problems.
• No debts to carry as you have control of the payments & guests pay before they
  stay - therefore little or no chasing up payments.
• No advertising money to be spent from your business as the unit owners in the
  letting pool are levied for this purpose.
• Secure agreements with a third party ( Body Corporate ) to ensure the viability
  of your business.
• All lending institutions look favourably on the management rights business due to
  the successful history of this industry & it is easier to obtain loans for this
  business compared to many others.
• No lease payments to landlords - the Body corporate actually pay you as manager
  to run part of your business (caretaking) where you live.
• Industry advice & support by an organization dedicated to the ongoing
  development of management rights through QRAMA/ARAMA.
• Social aspect of the business in that managers from each area get together to
  meet & discuss day to day issues over a meal at the local restaurant.

With regards to amounts being paid for the goodwill of a business as a multiple of the nett profit of the business we offer some "Rule of Thumb" comparisons - these multiples are not set & there are many sales outside these indicated multiples.

• Management Rights - 4 to 6 times the nett.
• Post offices - 3 to 6 times the nett.
• Motels - 2 to 3 times the nett depending upon the length of the lease.
• Franchises - around 3 times the nett.
• Manufacturing - 1 to 1.5 times the nett.
• Other general business - food / retail etc - 1 times the nett.

The reason for the higher multiple for management rights is due to the safer business environment for this industry as seen from a financial lending point of view & this has been reflected in the market place

To find out more on management rights please wisit our website www.managementsales.com.