Professional guidance every step of the way
In 2017, when Matthew and Sara Taverner from Norfolks Moffat Beach were looking to purchase management rights on the Sunshine Coast, they quickly realised the disparity between their aspirations, what they could afford and what the bank would lend.
Fortunately, their broker, Matt Campbell, from Australian Resort Management Sales reached out to industry experts Mike Phipps and Tony Rossiter who offer a transaction management service to find a solution and oversee the process end to end.
Mike Phipps explained: “Working with Tony Rossiter in our joint company, Transaction Management Consultants, we assist purchasers to analyse opportunities in the early stages and ensure the process and outcomes meet the expectations of the group.”
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“Often management rights purchases involve ongoing negotiations to ensure a mutually acceptable outcome and we certainly get involved to assist the purchaser group. With this purchase at Norfolks, we were dealing with very experienced agents who understood the issues and provided invaluable assistance in achieving a successful partnership result.”
Look into the future… and the ultimate disaster for any business is a dysfunctional partnership. Mike revealed: “When things go wrong I can nearly always trace the problem back to the initial setting of expectations. From the beginning everyone must understand what the group is trying to achieve, and all have a shared goal. Too often, I’ve seen personality conflict that could have been avoided by better matchmaking and ensuring that expectations were in alignment.
“However, in the case of Norfolks we knew that we had a very experienced senior accommodation industry manager in Matthew,and his involvement made the process much easier. Generally, we advise investor groups to only partner with experienced working partners and in Matthew and Sarah we certainly had the right people.”
Working with Trent Pevy of Pevy Lawyers and Peter Brewer of Pbb Consult was also a positive experience. “These guys are pro-active and understand the processes; we didn’t have to re-invent the wheel and that’s a huge help, ensuring a smooth transaction. Their credibility in the industry meant that the outcomes of their reports were taken seriously and that’s a very good thing, particularly if some re-negotiation is required during the process,” Mike admitted.
Readers, think of it this way… Transaction Management Consultants act like traffic cops, working with the lawyer, accountant and the finance function that Mike Phipps Finance provides, aiming to avoid an accident.
Mike added: “My advice to anyone thinking of acquiring a management rights in a partnership structure is to do their homework and only engage industry professionals. Don’t try and manage the process yourself, the task requires an independent and dispassionate approach and that’s what we provide.”