Stronger than you think

In speaking to people about the business sales market, there seems to be the assumption that sales are slow at the moment and the market is tough. The GFC and a flatter real estate market seem to be the catalysts behind these assumptions.

While there is no denying that conditions are tougher for business than in previous years, this is only effecting the business sales market in one way- a lack of businesses to sell.  And while business sales may be alligned with the real estate industry it doesn’t go through the booms and lulls that property seems to.

Buyer interest for businesses is as strong as I’ve seen it.  In fact our listings to sales ratio has never been higher and there seems to be several other brokerages making a good number of sales.

Enquiry is coming from a good variety of sources including local buyers, people who have relocated here from interstate and overseas. Currently there aren’t too many businesses on our books that don’t have serious interest in them.

Buyer’s are as cautious as ever so correct preparation is crucial. An in depth and thorough preparation will enable a buyer to move with confidence and maximise the chance of a contract settling.

Interest is not limited by price range either – We have put sale contracts on a number of smaller, one man operation through to several $1,000,000 + businesses in recent weeks.

The great news for the many businesses out there with good, consistent profits is that the multiples and capitalisation rates being used to determine business prices are similar to several years ago.  The only difference for business sellers is with limited opportunities at the moment, you competing against a smaller pool of businesses giving you the best chance of achieving the best possible result.