The Management Rights business can be a lucrative one, and can fetch you a good price if your accounts are in order when you try to sell the business. The accounting side of your business needs to be in order for you to get the best price for your business. Let’s take a look at what you need to do to achieve this.
Here’s what you need to look out for:
- Asset inventory: You need to have a clear picture of the assets that the business owns and make a list of them. Find out how much these assets are worth and if there are any commitments that they entail. If so, how you settle them? Will it be done before the sale or will the buyer inherit them. Make sure that all the title and other documents pertaining to assets owned are in order.
- Agreements: Management Rights is a lucrative business because of the stable and recurring nature of their income. This income is again based on your letting and caretaking agreements so you need to make sure that these agreements are up-to-date and functional.
- Accounts: You need to make sure that the Trust account and general account records are both updated along with licenses and other permits. This will help prospective buyers to go through the records and trace the income and expenses.
- Track the Unit charges: Unit owner charges are reviewed at yearly intervals and you need to keep track of them in the PAMDA’s.
- Taxes: make sure that you work with your accountant to ensure that your income and capital tax gains are accounted for and in agreement with the rules. This will ensure that you don’t pay more taxes than you need to.
- Tracking your sales: You will also need to ensure your Profit and Loss statement has been prepared by an accountant who has experience of the Rights Management business. The statement must be prepared for every quarter and have the data for the preceding year. You will even have people asking for the trading figures for two years or more, so that they will be able to evaluate the profitability of the business.
These are some of the things to look out for if you are planning to sell your Management Rights business and you want to realise the best that you can, for it.