Bonanza for Business Buyers
Business settlements for the 2016 financial year to date show strong growth in the number of sales achieved in businesses priced up to $500 000.
Whilst it is normal for this price bracket to attract a large percentage of overall sales, the year to date settlement results highlight a trend which appears to be coming from business sales in the $500 000 plus price bracket.
In our opinion there are several reasons for the swing and the majority of these are proving to be a bonanza for business buyers, such as;
- Businesses are being offered with significantly higher ROI’s than we have seen in recent years
- Buyers are able to purchase well established, profitable businesses for less outlay
- Interest rates are at all-time lows and financial institutions are more willing to lend
- Buyers know there are numerous opportunities with substantial growth on the Coast underway and in the years ahead
- Many residential properties have increased in value, giving buyers the equity/security required to fund a business
In addition to this we are witnessing increased enquiry levels in this price range as many unemployed FIFO workers are settling back on the Coast and wanting to return to life with above average incomes.
Interstate enquiry also continues to grow, we are seeing numerous Sydney and Melbourne residents cashing in on the southern property boom and heading north for a better lifestyle. Most of those relocating have the funds to secure a property and a decent business, ensuring they don’t get caught up in the busy unemployment lines.
Whilst the numbers of sales have slowed in the $500 000 plus range, there is still solid interest in quality listings in this segment. We currently have six businesses price over $1 million and all have strong buyer interest, proving there is no shortage of funds here at the moment.
If you have clients contemplating the sale of their business, the professional team at Savvy Business Sales and Queensland Business Sales offer an obligation free, in depth appraisal service. This document highlights expected price ranges, comparative sales, expected time frames and the costs associated should they choose to proceed.
We look forward to working with you.