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Office Address
1310 Hay Street
West Perth
Western Australia 6005

Mailing Address
PO Box 282
West Perth
Western Australia 6872

Phone: +61 8 9481 4422
Fax: +61 8 9481 4441

Email us:
info@buyabusiness.com.au

State of the Market

State of the Market > Service & Professional Practices

Retail (Food) | Retail (General) | Hospitality/Accommodation | Wholesale / Manufacturing

Category Buyer Demand Profit
Owner Operator
Approx.
Total Sale Price
(AUD)
Approx ROI Profit
Under Management
ROI Industry
Comment
Accountancy Practices Strong N/A N/A N/A N/A N/A Continuous buyer demand with expansion practices. Opportunities becoming available baby boomers plan their exit strategies.
Amusement Rounds Quiet $100,000 $125,000 60% to 100% $40,000 30% to 35% Location is the key and good sites will create high profits and better ROI.
Child Care Centres Strong $300,000 $1,000,000 27% to 35% $240,000 23% to 27% Demand for larger centres from industry players is still high. Smaller centres more likely to sell to owner operators.
Cleaning Businesses Solid $250,000 $600,000 35% to 50% $190,000 25% to 35% Large contractors of interest to corporate buyers.
Consultants Selective $100,000 N/A Variable % $40,000 Variable % Sell for 30 to 60 cents per dollar of gross fees.
Courier Businesses Fair $65,000 $80,000 70% to 90% N/A N/A Couriers with set runs are still in demand. Major courier contractors of interest to corporate buyers.
Drycleaners Solid $100,000 $170,000 45% to 70% $40,000 20% to 30% buyer interest is light.
Hairdressing Salons Fair $100,000 $110,000 80% to 110% $40,000 30% to 40% Too many outlets to easily justify substantial goodwill. Strong job market causing wage problems.
Home Service Franchises Good $50,000 $75,000 60% to 75% N/A N/A Steady underlying demand for job replacement reasons has weakened due to strong employment market.
Mechanical Workshops Occasional $75,000 $94,000 70% to 90% $15,000 15% to 30% With Shell and BP concentrating less on workshop business - independents will benefit. Purchasers tend to prefer brand or franchise outlets.
Newspaper Delivery Rounds Light $100,000 $294,000 30% - 38% $40,000 10%-16% Recent sales of quality rounds at 33% - 39% ROI. These businesses still offer good security. Outer suburbs are a little harder to sell. Less buyers now due to strong job market.
Post Offices Strong $125,000 $525,000 22% to 27% $65,000 10% to 15% Strong buyer interest resulting in premium prices. Regulated niche and good marketing by Australia Post give purchasers confidence.
Professions Variable $200,000 N/A Variable% $140,000 Variable% Sell for 20 to 100 cents per dollar of gross fees. Different professions have markedly different demand and value.
Recruitment Strong $750,000 $2,000,000 33% to 43% $690,000 30% to 40% Corporate and industry demand is strong for both blue/white collar and mining/resources sectors. Buyer interest also for recruitment firms in Financial and Health Care sectors.
TAB Agencies Fair $100,000 $300,000 32% to 37% $40,000 10% to 15% Where a new agreement is in place demand should be solid. The "boom" and higher wages is probably having a negative effect on a number of purchasers.
Taxi Plates Fair $70,000 $190,000 33% to 40% $10,000 5% Fair demand from investors and prices have stabilised.
Transport Businesses Fair $100,000 $140,000 60% to 80% $40,000 25% to 33% Some demand for trucks with written contracts netting AUD$100,000 plus. Strong jobs market means fewer buyers than before.
Travel Agencies Poor $150,000 $250,000 50% to 70% $90,000 30 to 40% Some buyer interest. Airlines paying lower commissions causing agents to charge their customers a service fee.