Australia’s business environment has changed considerably in recent months. While the past was dominated by sellers, Wim Janssen, the Director of LINK Sunshine Coast, notes that we’ve now shifted into an evenly balanced market.
This shift to equal power amongst buyers and sellers has predominantly been driven by uncertainty about the future. But it’s not all doom and gloom! Now that we’re on the other side of the pandemic and welcoming back normality, people are choosing to control their own destiny.
“In the past, when there were fewer buyers than sellers, it made sense for business owners to hold onto their business for as long as possible,” Wim reflects. “With so few looking to buy back then, sellers had more leverage over their asking price and could negotiate better deals that they might’ve not been able to get with more buyers competing for fewer businesses,” he says.
However, things have changed dramatically in recent months – and not just because there are more people looking to buy businesses than ever before! “There are plenty of private equity businesses wanting to invest in something that will grow their money while providing them with an opportunity to maximise their profits,” Wim explains. “These businesses have plenty of money to invest and a desire for good returns on their investments.”
Both the rising desire to buy a business and the sheer amount of private equity businesses seeking investment opportunities has led to a dramatic change in the way businesses are being sold. Thanks to a combination of these factors, it’s becoming easier for buyers to get better deals than they would have during the foregone seller dominant market. As a result, more than ever, business owners are motivated to sell and take advantage of this boom in buyers.
Wim shares vital advice for sellers. “It’s important for business owners looking to sell to make sure that they take the steps necessary to prepare their business for sale,” he says. “There are several steps business owners can take to increase the appeal of their business to potential buyers and preparation is key.”
As for buyers, Wim reiterates that now is an ideal time to be in the market for a business. “There are plenty of sellers out there willing to sell their business at prices that will give you the chance to do something great,” he says.
