How Much Do Management Rights Cost ?

Management Rights sell at a multiple of the nett profit (i.e. after all business expenses) with the multiple currently between 4 to 5 times nett. The multiple varies for a number of reasons – position, trading history, length of agreements, future growth, supply & demand etc. For example if the business has a nett profit of $100,000 and a multiple of 4 times, you will be paying $400,000 for the business plus the value of the managers unit.

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