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North Queensland Management Rights

I have been selling businesses for over twenty years but have specialised in selling management rights since moving to North Queensland in 2010. Management rights are not well known outside of Queensland but have been an integral element in the growth of tourism throughout the state since the 1960’s. Over that time, the rights industry and its impact on tourism has not only flourished but it has provided huge opportunities for thousands to embark on a business venture that has ensured a greater level of success for the business owner than most alternative industries I know of. The barriers to entry and the required level of investment make it possible for most to share in this growth and this level of success.There are sound reasons for this.

The first is the industry has always enjoyed the support of both local and state government and has embraced a level of statutory regulation that underpins the interests of all stakeholders. Unlike most other industry sectors – and this includes recognisable alternatives such as the motel sector, holiday parks and hotel accommodation – management rights has a legislative framework that minimises the likelihood of ‘surprises’ for the genuine, but unwitting purchaser.

Anyone purchasing management rights typically follows a due diligence process that thoroughly examines all material parts of the business before settlement. This process inevitably results in purchasers having greater knowledge of the business they are buying than either the broker and often the seller before they commit financially. Certainly, this gives any purchaser and especially one new to business, peace of mind. For the broker, this is a bonus for all too often one hears of people venturing into business only to find they purchased the ‘lemon’.

Over the years, the banks and other lenders have always been great supporters of the rights industry in financing the purchase of management rights. There are good reasons for this – the statutory framework protecting the interests of all stakeholders, the ‘bricks and mortar’ security within the transaction and the guaranteed income from day one from the Body Corporate salary component.

As a broker, one can sell management rights with confidence all too often absent if selling a business in any other industry.