Sale of Management Rights
When it comes to selling a Management Rights business, it has been described by some as a simple process.
While it does not include a legal due diligence investigation, they can include:
- issues with figures and renegotiations;
- legal due diligence questions and answers;
- issues with valuation and finance;
- transfer fee advice; and
- the body corporate / committee trying to unreasonably withhold consent to the eventual assignment.
All of these aspects and issues need to be managed correctly.
The biggest variable in any Management Rights transaction is the body corporate. If the approval process is not managed correctly it can lead to nightmare consequences, including the sale falling over as a result.
When selling your Management Rights business getting the right advice is critical.
Examples of articles where we talk about these issues: