What drives business sales?

As brokers we are often asked “how long will it take a business to sell?” and “how the market is for business sales?”
The answers are not straightforward and are to some extent mutually dependant.
The “how long” can be dependent on the ability of the interested buyer to identify the business, perceived value for buyers, their ability to borrow to buy, the background story of the industry sector and their personal needs, hopes and desires.
Complex- but one common theme- it is up to the buyer as to when (and why) a transaction takes place.
Currently, we are seeing a high volume of sales. That means that more buyers are deciding now is the time to buy when they see value.
This is because more buyers have entered the market and many of them are incentivised to buy.
Why are they incentivised currently?
1) Many buyers have been released from corporate jobs and are looking to secure a future income with the redundancy pay they received.
2) Many buyers are looking to move from big cities following Covid and are looking for a tree or sea change with an attached income. So, they are selling city property, releasing equity and are cashed up to buy.
3) Temporary visa holders have the opportunity to gain permanent residency by purchasing a regional business, driving regional sales of small, easy to operate businesses.
4) Australians from overseas are leaving or losing their corporate roles and moving back to Australia. Once back they want to drive their own destiny and are again looking to buy.
5) Homeowners are seeing home prices grow, creating additional equity enabling them to finally escape employment and own their own business and their own future.
Due to the above factors, the “how long” is driven down by the buoyant market conditions. If you are looking to retire or change your direction soon, then now is the time to act!