Estate agency software provider Veco has underlined the significance of robust systems and processes for agencies looking to grow or eventually sell. The firm noted that compliance records and operational dependencies are key areas of buyer scrutiny during due diligence.
According to Veco, buyers typically examine more than just financial performance, with factors such as compliance records, data consistency, and reliance on individual employees emerging as critical operational considerations during the sale process. Richard Murray, CEO of Veco, stated that buyers seek "compliance kept up properly and a business that doesn’t depend on one person," identifying these as common pitfalls for agencies attempting to sell.
The focus on operational systems comes amid increased regulatory scrutiny in the property sector. The government has confirmed mandatory licensing for property agents and introduced regulation of leasehold managing agents, which is expected to heighten the emphasis on compliance documentation and standardised processes.