OMM has more qualified and skilled workers. There’s more equity directors in the mainstream business. The equity directors can pool their knowledge and share this amongst each other as they have a vested interest to do so. They work hand in hand.
They drive one another on a daily basis and there is mutual respect amongst the community as all their businesses are profitable. All subsidiary owners enter the OMM with existing value. At worst each subsidiary can pay off any debts with any listing proceeds. Owners are planned to be cash rich and millionaires from listing but incentivised to continue their ongoing work.
The OMM is a team orientated environment across the group. The OMM is cost effective to get up and running and mitigates much risk in its setup. The OMM is likely to succeed as the model purchases profits only.
The OMM aims to double/treble values on listing. Founders and owners of the OMM only benefit from their hard work on a successful float. This keeps entrants profitable. There’s more equity beneficiaries within the OMM model. A high proportion of main equity directors become millionaires. The OMM reduces risk on day 1 by acquiring profitable established businesses only – no start-ups. Finally and very importantly, the OMM can ‘arbitrage’ on stock markets by buying profits at lower value once listed, with an intent to drive share value. Franchisees don’t tend to buy businesses in the same way but their model tends to focus on driving their sales by selling ‘systems in boxes and manuals’.
With the OMM more skilled equity directors join the movement. With the OMM you can add a franchising arm to the model but you can’t add an OMM to a franchise prototype. The OMM therefore has more agility and options for ongoing growth.