Wednesday, December 13, 2017
We've got an in-house staff now. If we switched to an AMC, what would we do
with our offices, equipment, and staff?

Associations that are thinking of switching from an in-house staff to an AMC have to plan for the transition of their offices, equipment and other possessions, and staff.

Offices

The association must usually give up its offices, and that can mean buying out a lease or selling property. However, in rare cases it may be possible to transfer these assets to the AMC.

Equipment

Some of the association's office furnishings and equipment will have to be sold, but that should not be a problem for most of it. The AMC may also be interested in purchasing some items for use in managing the association and other clients. And in a few cases, an AMC may agree to simply store or use certain items, with the association maintaining ownership of them.

Staff

What to do about staff is the most difficult part of the decision to switch to an AMC. Unless the AMC needs the extra people, and the association's current staff members are a good fit with the AMC, staff members will have to be let go (with ample notice to let them find new positions). Also, the AMC may not be in the same city or locale as the association's headquarters, and relocation costs could be prohibitive.

Every AMC works differently, but Magellan has in the past offered to take on the Executive Directors of potential clients as Magellan staff members. In this way, the association would get to keep its Executive Director (who would get to move to Florida), and Magellan would gain valuable experience and industry insight. Of course, Magellan cannot do this for every client, but it is a possibility worth exploring.

   

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