Riding the superyacht wave

With 2024 set to be the biggest year for luxury yacht sales both in Australia and worldwide since before the COVID-19 pandemic, Matthew Baily’s timing couldn’t have been better.

Having launched the prestige boating support services firm, Baily Marine Consulting (BM Consulting), with his wife Hannah early last year, the veteran seafarer now finds himself with a bulging order book and a slew of blue-chip clients desperate to exploit his expertise to design their next multi-million dollar vessels or refit an existing fleet.

“It can be intimidating and time-consuming if you don’t have a deep understanding of the industry. That’s where BM Consulting becomes invaluable.”

The global yacht market is projected to grow from US$8.73 billion in 2023 to US$10.78 billion in 2028 as luxury tourism surges in popularity and waiting times for new craft are drastically reduced. This year, 205 superyachts will be delivered to customers, the highest number in over a decade. The figure would have been some 75 percent higher were it not for the lengthy backlog in orders exacerbated by the pandemic.

With prices of 20–30 meter superyachts commonly reaching between US$10 million and US$20 million, the potential for market growth once supply chains have recovered is enormous. The Australian market’s turnover rose by US$66 million last year to US$6.45 billion and employed more than 25,000 people. One in 10 of the population has a boat license and there are nearly a million registered boats, three-quarters of them less than 10 years old.

Complex transactions

But buying a US$15 million superyacht isn’t a straightforward process, even for the billionaires who’ve spent decades sailing around the world on them.

“Owners face several unique challenges when they’re after a new yacht, selling one they no longer need or planning a major upgrade,” Baily says.

“There are complex regulatory environments, wildly differing standards of craftsmanship and multiple stakeholders to coordinate, often across two or more continents. It can be intimidating and time-consuming if you don’t have a deep understanding of the industry. That’s where BM Consulting becomes invaluable.”

Few in the industry have more impressive credentials or a deeper-seated passion for the sea.

“Part of my job is to keep abreast of the latest trends, market conditions and best practices from all of them so we can offer our clients the very best service.”

He started working on boats as a 17-year-old Sydneysider before traveling to Europe three years later to work on a series of mega yachts in the Mediterranean, eventually qualifying as a captain.

That led to 12 years of skippering superyachts across Monaco, France, Italy and Australia, allowing him to witness firsthand the intricacies and demands of the sector and sowing the seed of the idea of launching a consultancy with Hannah, herself a seasoned professional with over 13 years under her belt managing some of Australia’s most prominent charter yachts.

“A passion for delivering exceptional experiences drives me,” Baily says. “I thrive on the challenge of using all my experience to transform unique visions into reality, ensuring every detail is meticulously planned and executed. The satisfaction of seeing clients delighted with their yachting fuels my dedication.”

Tailored solutions

His hands-on approach with exacting attention to detail is essential as no two commissions are alike.

“The best advice I ever received was to approach each project with a clean slate rather than relying on past templates,” he says. “That way, you can tailor your approach to align perfectly with bespoke solutions that exceed expectations.”

The philosophy has allowed BM Consulting to thrive in a competitive, high-stakes industry where most deals have six or more zeros at the bottom of their invoices.

Baily’s international mindset has been key to becoming a valued and respected representative for owners. He frequently helps them with purchases or repairs in overseas jurisdictions that have to comply with the safety or logistics legislation that’s in place elsewhere.

“The best advice I ever received was to approach each project with a clean slate rather than relying on past templates.”

“For that to happen, you need a comprehensive understanding of cultural nuances, federal protocols and the rules by which the markets in Europe, the Middle East or Asia–Pacific operate,” he says.

“Yachting transactions occur in many countries and part of my job is to keep abreast of the latest trends, market conditions and best practices from all of them so we can offer our clients the very best service.”

BM Consulting’s team brings a wealth of expertise in naval architecture and engineering, ensuring that even the most complex design and technical challenges are met.

A typical refit or build begins with detailed consultations to agree the scope, budget and critical path followed by the drafting of a blueprint that includes design specifications and technical requirements.

The team then coordinates with a network of skilled craftspeople and suppliers to source materials and execute the work. The final phase involves rigorous quality checks to be certain the yacht meets safety and performance criteria.

Maintaining quality

“Our project managers are adept at coordinating multifaceted, end-to-end operations that run seamlessly and overdeliver on the customers’ expectations. We love all the positive feedback we receive and we’re proud every time we deliver wonderful boats and see how happy they make our customers,” Baily says.

“Purchasing, building or renovating a superyacht is a deeply personal decision, so we approach each project with the utmost care and attention. We’re getting so many enquiries these days, but we have to refer many to other consultancies because we limit the number of jobs we take on so that each receives our full focus and our quality of service is never compromised.”

“It’s really about giving our clients peace of mind so they can get the most out of their sailing.”

The policy has fostered strong, long-term relationships built on trust and earned BM Consulting an enviable reputation in the yachting fraternity. To cope with the skyrocketing demand, the company is expanding its operations by opening a new office on Queensland’s Gold Coast to boost capacity for domestic refits.

“It’s really about giving our clients peace of mind so they can get the most out of their sailing,” he smiles. “We’re here to make their yachting dreams come true.”