It’s All Action in Queensland!
It’s All Action in Queensland!
2023 is shaping up to be extremely active across the Queensland business sales sector.
With the property market finally starting to slow down, the share market continuing to be quite unpredictable and at times volatile, and interest rates continuing to increase, many investors are looking to invest their funds into a solid business venture.
And why not? A solid business with strong foundations is going to provide an excellent return on investment compared to bricks and mortar or the average stock.
Due to this increase in buyer activity, sellers have the opportunity to create a competitive market for their business, especially if they are prepared to offer a proportion of vendor finance or would be open to staying on for an earn-out period. This will often maximise the end result as it gives a buyer plenty of increased confidence.
As a great location for investment, Queensland is also experiencing an interstate migration boom.
According to a report from Sky News in September 2022, Queensland has again recorded the nation's highest population growth rate as it continues to benefit from residents leaving New South Wales and Victoria in their thousands.
Data released by the Australian Bureau of Statistics in September showed “Queensland's population grew by 1.8% in the year to March 31. The Sunshine State added more than 92,000 new residents in the 12-month period, taking its population to 5.296 million”.
The industry is also experiencing a generational shift away from traditional means of family business, transitioning ownership to the children or grandchildren.
Many young entrepreneurs are chasing their own dreams online in areas they’re passionate about, not their parents or grandparent’s dreams. This often leaves the family no choice but to sell the business and an astute investor will reap the great rewards on offer.
Franchising also appears to be back on track, experiencing plenty of confidence across a variety of industries.
With many markets saturated with strong brands, whether it be food, fitness, beauty, manufacturing, pharmacy etc. a motivated buyer faces many obstacles with entering the market as a greenfield site. Therefore, an established franchise with a trading history to measure, a secure lease and systems and processes already in place is extremely attractive to buyers.
Finally, don’t hold on too long.
We have seen on countless occasions owners considering selling their business however delaying their decision and then the unthinkable happens and their business is worth considerably less or nothing at all.
You don’t want to make that decision.
If you have a very solid business and all your accounting is in order, the operational structure is sound and you’re thinking selling could be a wise idea – then turn it into a great idea and start your retirement or next venture early!
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