Market Report

April 2009

There was increased Buyer enquiry in March and early April, resulting in plenty of inspections but low offers and few contracts.  There is a bit of a “stand off” at the moment between Sellers who are not desperate to sell and Buyers who are valuing on a “worst case scenario”.  In time both sides will give a bit and deals will get struck.

Is demand more important than supply?  At the moment Buyers are still nervous about the future of the economy.  Sellers are reluctant to list as they are concerned that they won't be able to get the price they want.  The task for Buyers is to find a business that will continue to trade consistently.  Many will and many will not.  We as agents are seeing plenty of businesses but we are only listing what we think are saleable in this current market.  As more businesses fail the increasing numbers of unemployed will become potential business Buyers.  The market for businesses showing a net profit to the owner of between $75,000 to $150,000 at a sale price of $150,000 to $300,000 will receive keen demand from these new Buyers.

As Business Brokers we are eager to list these types of businesses with reliable trading performance data, so please business owners give us a call for a confidential chat regarding the possible sale of your business.

We also appreciate getting to know our Buyers better.  Knowing your requirements in full and building a rapport will often lead to a successful sale.  We can personally keep you informed of what is in the pipeline that suits you, so that you can pounce as soon as it comes on the market.

It is said that 90% of business Buyers will buy something other than what they first enquired about.  That is why we as agents need to get to know our business Buyers better.  Please call us to discuss your needs.