MONTH in, month out, we speak to hundreds of business owners on the Sunshine Coast, many of which still have a common belief that the current market conditions favour the buyer.
Some are contemplating selling their livelihood in the not-too-distant future, while others have no desire to sell in such a one-sided market. This misconception couldn't be further from the truth.
The reason behind this is simple supply and demand, much like the property market. The stronger the demand for businesses, the higher the sale prices are as competition between buyers increases.
We pay for the privilege to live and work on the Sunshine Coast.
Currently on the Coast there is a supply and demand crisis. Agents are dealing with a number of pre-qualified buyers, who are organised and ready to purchase.
The market is really tight at present and there just are not enough quality businesses coming up for sale to satisfy this demand.
Of late, there have been a number of "off the market" sales, which has resulted in days on the market decreasing significantly.
Good working relationships have been forged with buyers and, through high levels of communication, buyers are putting their trust in agents.
When we find a great match for them, they need to look at it before it hits the market and before the exclusivity on that opportunity has passed.
Somewhat like the housing market on the Coast, the market has bottomed out and is now in full recovery mode.
Again we are seeing very encouraging signs for the indefinite future, with many businesses receiving multiple offers and back-up contracts are being drawn up on several of our listings, just in case lady luck is smiling.
This really is a great time to capitalise.
For serious sellers, today's market offers excellent opportunities to achieve strong sale prices in short time frames if their sale is managed properly.
Despite the market moving quickly buyers are more cautious and diligent than ever.
Agents presenting businesses in a professional manner, with tax figures in hand, are achieving great results while anything that's sub-par is simply making up the numbers at the bottom of the market.
It's a great market to be selling in and a hard one if you're buying. Buyers need to be prepared with finance arranged, entity set up and the confidence to move quickly.
Sales prices in the past few years have been in decline. As bitter a pill it has been for many business owners to swallow it is a fact.
Purchasers, their accountants and other advisers, combined with the sometimes paranoid and pessimistic outlook that banks have, not only devalued businesses but made lending against one extremely difficult.
Due to the current demands we are seeing transactions increase in volume and value.
We are again witnessing multiple nett profit sales prices being achieved.
The future is very bright.
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