Market Report September 2009

16 Sep 2009



SHORTAGE OF QUALITY SALEABLE LISTINGS
Welcome to our first Weyman Jones' Newsletter.

We have been experiencing an increasing shortage of quality, saleable listings for approximately 2 years.  The typical retiree seller has not been willing to sell because of the decreasing value of their superannuation funds.  They have understandably felt more secure in holding on to their business as a security against a declining retirement income.  This slowing of supply of quality listings has created a keen demand from Buyers for anything that shows a reliable performance.


Our advice to potential business sellers is to sell now, while the market is hot.  The past uncertainty in the stock market seems to have diminished, and it now looks that the placement of one's sale funds into this rising market might look like a good decision.

Eventually, nature will look after itself.  The unnatural restriction of listings will lead to an increasing supply (or flood), when it is generally accepted that the economy has returned to normal.

HOT TIP:  SELLERS SHOULD MEET THE MARKET NOW!

Since our last newsletter in July a few sales have settled and some new listings have gone to contract within a few days of being on the market.  We are currently working on listing the following businesses:-

Magazine Publishing, large licenced restaurant, commercial cleaning, large food distribution - please call Harvey or Gary on  (07) 5447 2788  to express your interest.


IDEAL FOR BUSINESS MIGRANTS - A Safe & Reliable Business
We have just listed a business that has provided the last 2 owners with their permanent visas.  A South African and the current Pom owners did not have any previous experience in the industry which indicates a reassuring reliability of performance not linked to the skills of the owner.  See later: Trade Services, $535,000, for further details.


BIG DROP IN TEMPORARY OVERSEAS WORKERS
There has been a significant drop in the numbers of temporary skilled overseas workers coming to Australia.

  •  Primary applications lodged in 2008-09 were 11 per cent below 2007-08 and primary applications granted were 13 per cent below last year
  • Primary visa applications in June 2009 were 45 per cent lower than June 2008 and 40 per cent lower than in September 2008, before the global economic crisis hit
  • Of the top 15 occupations for primary applications granted, only registered nurses increased, up 18 per cent
  • Among the top 15 source countries, only Ireland showed any growth with an increase of 8 per cent
  • There were 77,330 primary visa holders in Australia at 30 June 2009, compared to a peak of 83,130 at the end of February 2009
  • The average nominated base salary for Subclass 457 visa holders has increased by 6 per cent from last financial year to $77,500 while average total remuneration increased to $91,400


New South Wales recorded the biggest decline with a 24 per cent drop in primary applications.  Queensland was down 7.5 per cent.

There will continue to be demand for skills in some sectors, such as healthcare, so there will be a need for employers to access skilled overseas workers to fill gaps on a temporary basis.

Changes announced to the Subclass 457 visa program this year will ensure that temporary skilled overseas workers are not employed ahead of local workers or used to undermine Australian wages and conditions.  New worker protection laws that come into effect next month will also prevent exploitation of foreign workers and assist in improving workplace safety.

These measures include the implementation of formal skills assessments and an increase in the English language requirement for trade occupations from 1 July 2009; the introduction of a market-based minimum salary for temporary overseas workers from next month; and a requirement that employers of overseas workers have demonstrated commitment to employing local labour.


FRANCHISES
Our thanks to Tony Pattinson, Ferguson Cannon Lawyers for supplying this information:

Updating Disclosure Document
Pursuant to the Franchising Code of Conduct all Franchisors must update their Disclosure Document within three months after the end of each financial year.  This means Franchisors must update your Disclosure Document by 30 October 2009.

When updating the Disclosure Document Franchisors must take into account all aspects of the document including:

  • Whether any of the Franchisors or people likely to have management responsibilities for your business have changed
  •  If there are any current proceedings or arbitration against the Franchisor in Australia
  • Particulars of any franchisees that were transferred, ceased to operate, terminated, not renewed when expired or bought back by the Franchisor
  • Update financial reports so that the last two completed financial years are attached to the document


Franchisors should be reminded of their obligations.

It may also be an ideal time to make any amendments to the Franchise Agreement if required.

If you have any queries, please do not hesitate to contact Tony Pattinson, Ferguson Cannon Lawyers, Maroochydore on  (07) 5443 6600  or This e-mail address is being protected from spambots. You need JavaScript enabled to view it