the train is leaving the station, page-8

Thanks for reminding me of WWM again Xavier. I went through the IER back when the transaction was completing. The Wentworth RMA's were experiencing a downward slide and mgmt were in the process of transitioning out of sales and letting to focus exclusively on property mgmt. The acquisition was essentially a mgmt buyout by the Century 21 chap (Tarbey). Interestingly, he was advised by Macquarie.

Macquarie advised on the WWM deal, provide debt funding for RNC and a JV is announced between RNC and YBR (where MQG has a substantial interest). They just keep showing up. RTI should have gone with MQG as advisor/broker. Or maybe they tried and MQG turned them down.

The economic life of the RMA is not that important to me if RNC are able to grow beyond the churn. Especially as the churn is necessary to generate easy sales comms. When it comes to accounting treatment, I'll always take cashflow growth over NPAT growth.

A little fun fact: In RNC's prospectus "they" forecast FY07 EBITDA of $16.2m with c.20,400 RMA's. Quite amusing.