Small Australian Strata Management Organisations Facing Uncertain Future - Start Your Earn-Out Now

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Issues within the Australian Strata Management industry means it is time for smaller managers to prepare for sale.

The Strata Management industry in Australia is facing massive uncertainty, with a rapid expansion by a group of large players, combined with the current economic conditions, forcing a major rationalisation within the industry. Simon Clatworthy, Executive Director of The Rufus Partnership and ‘Start Your Earn-Out Now’ says that for many smaller niche managers this means they now have to seriously look at succession and transition strategies.

The Rufus Partnership has launched a new venture called Start Your Earn-Out Now (SYEON), which is an action plan and road map to ensure Australian businesses are “sale ready” and able to achieve maximum value at time of succession or transition.

Pointing to the fact that, even in a strong industry, over 95% of businesses for sale in Australia either can’t sell or sell for less than they are worth, Mr Clatworthy says that time is running out for small managers to prepare for sale.

“The results of this uncertainty will be a rapid consolidation in the industry, with smaller niche managers facing the forced decision to sell or close up shop,” he said.

SYEON uses a hands-on approach, which involves the Rufus Partnership working with business owners to address 5 critical factors to maximise the business value and earn-out.

The process is particularly relevant for the strata management industry in Australia as buyouts are inevitable and businesses must be in the best position to achieve the most appropriate succession and/or transition strategy possible.

“When the time for sale comes, you need to ensure you are highly visible to potential buyers,” he said.

“For Strata Management, this means property managers need to ensure their portfolios are optimally structured with a good mix of property type, high geographical concentration and low client attrition.”

Simon Clatworthy is an MBA and Chartered Accountant who has held senior management and advisory positions in a number of high profile finance groups in Australia and New Zealand.

Recently he has completed a thorough research of the Australian Strata Management industry and been involved in successful sales for industry participants.

You can find out more about Start Your Earn-Out Now by visiting The Rufus Partnership website at or contacting The Rufus Partnership on 1300 995 981.


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Andrew Durack

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