Our 10 Step Guide to Selling your Management Rights or Accommodation Business

Everybody loves a checklist, especially when it comes to breaking down a big task into smaller parts, like selling a major asset!  Our advice is to start preparing early as there may be integral steps such as finalising agreements or financials that can take time.  It may sound biased, but we also strongly recommend getting some good advisors on your side.

For those of you that love a checklist, you can download the full overview and checklist here>> Ras360 MRA 10 Step Sellers Guide

The Ultimate 10-Step Guide to Selling Your Management Rights or Accommodation Business

If you’re thinking about selling your management rights, motel, hotel, pub, or caravan park in locations like South East Queensland, New South Wales, or North Queensland, it’s crucial to maximize your sale price while ensuring a seamless transaction. Our industry experts at Ras360 have created a 10-step guide to help you navigate the sales process and achieve the best outcome, whether you’re on the Gold Coast, Sunshine Coast, or in Brisbane.

1. Understand the Value of Your Business

Start by assessing your business’s worth in the region. Look at comparable properties in your area, whether you’re in Brisbane, the Gold Coast, or Sunshine Coast, and consider hiring a Management Rights or Accommodation Broker early on. They can help identify strategic improvements that may significantly boost your sale price.

2. Assemble a Team of Experts

Engage key professionals to streamline the sale process across South East Queensland or New South Wales:

• Ras360 Broker: Get expert advice, market insights, and connections in your region.
• Accountant: An industry-experienced accountant can prepare your financials.
• Solicitor: Legal advice ensures compliance and smooth document processing.

3. Prepare Your Financials

Solid financial evidence is crucial for a successful sale. Buyers in North Queensland or New South Wales will typically want to see three years of financial data. Start organizing your figures with an accountant experienced in the accommodation business to make sure they hold up during due diligence.

4. Create a Marketing Prospectus

Develop an Information Memorandum (IM) that highlights key business details, such as room availability, amenities, location (e.g., Gold Coast or Sunshine Coast), financial performance, and growth potential. At Ras360, our marketing team can create a compelling IM to attract the right buyers.

5. Go to Market

List your business on major online platforms where buyers search for properties in South East Queensland, New South Wales, or North Queensland. Leverage your broker’s network and database of active buyers in areas like the Gold Coast and Brisbane to speed up the sale process.

6. Negotiate the Deal

Evaluate each offer’s merits and how well they align with your goals. Your broker will guide you through negotiations, whether your business is located on the Sunshine Coast or elsewhere, and work with your solicitor to finalize contracts.

7. Buyer Due Diligence & Finance Approval

Once a contract is signed, buyers conduct due diligence by reviewing financial and legal documents such as leases, licenses, and agreements. The deal becomes unconditional once finance is approved, ensuring a smooth transaction whether in New South Wales or South East Queensland.

8. Obtain Necessary Consents

Before finalizing the sale, get consent from the Body Corporate or landlord to assign agreements, such as Caretaking and Letting Agreements or leases. This step can be stressful, but your broker will guide you through it, whether you’re in North Queensland or Brisbane, Ras360 has a broker network across the East Coast to assist.

9. Finalize Settlement

Settlement involves legal and financial procedures managed by your solicitor and broker. Once everything is completed, you’ll be ready to celebrate this significant milestone, whether you’re based in Sunshine Coast or Gold Coast.

10. Handover and Training

After the sale, assist the new owner with training if required and ensure the smooth transfer of ownership records and licenses.

Selling a management rights or accommodation business can be complex, but with the right preparation and team, it can be a rewarding process. If you’re ready to begin, contact Ras360 today for expert guidance and support across South East Queensland, New South Wales, and North Queensland, including the Gold Coast, Sunshine Coast, and Brisbane.