Like most industries, business brokers have their share of quiet and busy times. Often this is dictated by timing, the local economy, interest rates, current affairs or simply by coincidence, when buyers and sellers could be active or just sit back and wait.
These variables can have a major effect on the end result owners may achieve for their business. Of course supply and demand will also affect the result and the terms and conditions offered. As an example, buyers who know they are one of many interested in a good business will generally lessen their conditions and time frames and be more realistic on price when they go to contract.
So, getting your timing right almost always equates to a better sale price, fairer conditions and less time on the market. The question though is how do you know when the time is right? Well, like residential sales, business sales are cyclic and history proves our markets will fluctuate according to several key indicators and trends.
Fortunately these indicators are now pointing in the right direction, banks are more generous and money has never been cheaper, the Coast is one of the Australia’s fastest growing regional areas and has numerous major developments ensuring future growth. In addition businesses are showing more profitability and spring is traditionally the busiest time of the year for business sales as buyers are attracted to fresh financials and the summer trade.
The demand is certainly there with a huge increase in the number of buyers entering the market in the second quarter of 2016, this has also seen a reduction in the days businesses are on the market, The supply has been fueled by the quality of businesses offered, increasing unemployment and retiring baby boomers selling up.
Numerous key indicators suggest now really is a fantastic time to sell!