When preparing your business for sale it is important to take time to gather together all the information your agent will require to market the property professionally.
This will not only give your agent a better understanding of your business, but will also give him/her the tools to effectively and comprehensively answer the questions raised by potential purchasers.
To begin marketing your property your agent will need:
- Completed agent appointment agreements for the sale of the business and the manager’ unit
- A completed listing information sheet. This information forms the basis of property summaries used to market your property
- Good quality photographs of the manager’s unit and the complex
- A Profit and Loss for sales purposes fro the current twelve month period provided by a qualified accountant
- A copy of the Caretaking Agreement
- A copy of the Letting Agreement
- Any Deeds of Assignment and/or Deeds of Variation to the Caretaking and Letting Agreements
- Verification of current Body Corporate income
- A Body Corporate Disclosure Statement and Community Management Statement
- A list of inventory to be sold with the business
- A list of the manager’s unit chattels to be sold with the unit
- A list of the chattels owned by the Body Corporate
- A sustainability declaration for the manager’s unit (Queensland)
Additional Information required for the Purchaser’s Due Diligence:
- Profit and Loss Statement for the verified period
- General account cheque books and statements for the same period
- Print out of a full ledger account of all income and expense items for the verification period
- Records and receipts for all business operating expenses
- Records to show breakdown of “other” income
- A breakdown of any wages and salaries paid during the verification period
- Individual Letting Authorities for each unit in the letting pool
- A comprehensive list of tenancies and rental income for all units in the letting pool (permanent complexes)
- Tariff and occupancy rates for all units in the letting pool (holiday complexes)
- Current trust account audit report
We estimate that many Management Rights business advertised for sale are not sustainable or in fact fundable on today’s market. Determining fair market value is the most critical component of the sales process, and it is a mistake to base your price on advertised properties as many are over priced and won’t sell.
- Would I buy my business at this price today with these returns?
- Is it likely that the bank will approve finance? Ask your own bank if they would fund what you are asking for
- Does the real estate value reflect current market trends? It is often a very wise move to obtain a current valuation from a registered valuer
At Property Pacific we offer a FREE, confidential, no obligation service to discuss sales and marketing strategies. We will provide up-to-date information for you based on our research and sales experience to assist you to position your business to achieve best market price.
Please contact us for a confidential discussion.