Today’s business sales market for small to medium size businesses can best be described in one word – “patchy”. Not all businesses are in demand and buyers are very selective!
Based on current buyer inquiries the following are industries attracting
the most interest:
Accounting, IT services, aged care/personal care
Profitable businesses operating under management
Wholesale, niche manufacturing, online businesses
Generally, businesses with a profit BOS* of $100,000 – $150,000
(* Before Owner’s Salary)
General retail, health and beauty, home and trade services
Generally, businesses with a profit BOS*of less than $80,000
A positive development is the increasing buyer interest from cashed up professional investors and corporate entities seeking quality businesses delivering a sustainable profit.
This greater level of activity has yet to translate into improved transaction multiples and higher sale prices. However, it should improve overall market confidence if sustained throughout the rest of the year.
In this “patchy” market, advise business owners to start planning ahead if they are contemplating the sale of their business. Putting in the effort to prepare and market the business for sale will increase the chances of locating the ideal buyer; allowing for the owners to exit the business on their terms.