10 Things To Consider When Selling
10 Things to Consider when Selling
with Matt Ciallella
Below are the 10 Things To Consider When Selling. Consider each one carefully guiding you through from the beginning when you are just thinking about it and planning, through to when getting legal advice and near to completing the sale.
Right Time to Sell
A willing seller can mean retirement and exiting now or at some point after the completion of the sale. Or it can mean they’re tired or had enough of managing staff and still have the passion to sell or manage the rent roll, but not as the business owner.
Type of Sale
How do you want to sell your rent roll or agency? Are you a household brand in your area for over 30 years, and a known name in real estate? If so, a buyer that wants to change the brand could spell significant attrition of your rent roll after completion/settlement of the sale, during the retention period, which means you lose, not the buyer. Therefore your position of where you are located, the staff, the rent roll and the brand may need to be retained as a key part of the sale.
Price and Goodwill
I’m a strong believer that price should be at least second on your list as to your motivations of why you’re selling, but never first. The right buyer to take over your rent roll will maximise price, maximise retention with your owners when re-signing agency agreements, and look after your staff so as to also maximise your retention.
Income Per Property
The key to a higher multiplier is a very strong average income per property across the portfolio as well as strong letting fees and sundry fees. These rent rolls sell more easily and also attract an above market multiplier. More and more buyers are very aware of what their AAMI or average annual management income is. If an office looking acquire a rent roll has a AAMI of $1,600 - $2,000, then why should they consider acquiring a rent roll with an average of $1,300 - $1,500? This will only drag down their long term average down across their total portfolio.
Staff and Overheads
When looking to sell your rent roll and wanting a buyer to also take on your office and staff, it is because you’ve still got quite a few years left to run on your lease or your franchise, or you’re worried about the attrition of your rent roll during the retention period because moving it might disrupt your owners? Then consider the expenses the buyer will have to inherit.
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