At LINK Business, we are seeing a strong shift already underway. If you’re considering buying a business in 2025, understanding how to navigate this changing environment will be crucial to securing the right deal on the right terms.
Sellers Are Raising Their Game: Spotting a Well-Prepared Business
In a market where competition for quality businesses is intensifying, sellers are becoming more strategic about how they present their businesses for sale.
Buyers can expect the best-prepared businesses to offer:
- Clear and consistent financial reporting often externally verified.
- Well-documented operational systems that support a smooth transition of ownership.
- Forward-looking growth strategies, with realistic pathways to expansion.
- Risk assessments and contingency plans, demonstrating resilience in changing markets.
A business that is transaction-ready typically signals strong management and operational discipline — qualities that often translate into greater stability and performance post-sale.
How to Identify the Right Acquisition Opportunity
While the volume of available businesses is set to rise, discerning buyers will focus on quality, not quantity. When evaluating potential acquisition targets, consider:
- Strategic alignment: Will the business strengthen or expand your current portfolio?
- Market standing: Look for businesses with defensible market positions, a loyal customer base, and a strong reputation.
- Operational scalability: Assess whether the business has the systems and resources to support future growth.
- Cultural compatibility: An engaged, capable workforce can be a major asset during the transition period.
- Vendor motivations: Understanding the reasons behind a sale can offer valuable insights into potential opportunities and risks.
Working closely with a broker who understands your objectives can help ensure you identify opportunities that are both commercially and culturally suitable.
Regulatory Changes on the Horizon: What Buyers Should Be Aware Of
Australia’s regulatory landscape for mergers and acquisitions is also evolving. From January 2026, changes to the merger approval framework will come into effect, giving the Australian Competition and Consumer Commission (ACCC) broader powers to scrutinise transactions.
The reforms are designed to improve transparency and ensure competition remains robust across key sectors. For buyers, it will be important to:
- Understand the implications for specific industries: Sectors with higher consolidation risk, such as healthcare, financial services, technology, and infrastructure, may experience closer review.
- Factor regulatory considerations into deal planning: While most small-to-medium business transactions are unlikely to trigger significant regulatory hurdles, awareness of these changes will be important for larger deals or those involving significant market share.
- Remain informed and flexible: Working with experienced legal and financial advisers will help ensure your acquisition strategy remains compliant and adaptable to the regulatory environment.
At LINK Business, our brokers are experienced in staying ahead of the curve and are well placed to guide both buyers and sellers through any regulatory considerations relevant to their transactions.
Looking Ahead
2025 offers significant opportunities for buyers across Australia, underpinned by strong market fundamentals and a positive economic outlook. Buyers who prepare thoughtfully, act strategically, and stay informed about the changing landscape will be well-positioned to capitalise on the opportunities ahead.
Get in touch today to find out more.
