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 |
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State of the Market
> Service & Professional Practices
Retail (Food)
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Retail (General)
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Hospitality/Accommodation
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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
|
up to $1.05 in dollar of fees.
|
N/A
|
Fee multiple varies according to type of client.
|
Continuous buyer demand with expansion practices. Opportunities becoming available baby boomers plan their exit strategies.
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| Amusement Rounds |
Quiet
|
$100,000
|
$125,000
|
60% to 100%
|
$40,000
|
30% to 35%
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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%
|
$200,000
|
15% to 25%
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Demand for larger centres from industry players is still high. Smaller centres more likely to sell to owner operators.
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| Cleaning Businesses |
Solid
|
$250,000
|
$455,000
|
40% to 70%
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$150,000
|
30% to 35%
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Large contractors of interest to corporate buyers and industry insiders.
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| Consultants |
Selective
|
$140,000
|
N/A
|
Variable %
|
$40,000
|
Variable %
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Sell for 10 to 50 cents per dollar of gross fees.
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| Courier Businesses |
Fair
|
$65,000
|
$80,000
|
70% to 90%
|
N/A
|
N/A
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Couriers with set runs are still in demand. Major courier contractors of interest to corporate buyers. Fuel costs a challlenge and margins are thin.
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| Drycleaners |
Fair
|
$120,000
|
$200,000
|
45% to 70%
|
$20,000
|
8% to 12%
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buyer interest is light but these are solid businesses.
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| Hairdressing Salons |
weak
|
$120,000
|
$120,000
|
80% to 120%
|
$20,000
|
15% to 35%
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Too many outlets to easily justify substantial goodwill. Strong job market causing wage problems.
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| Home Service Franchises |
Good
|
$60,000
|
$80,000
|
70% to 80%
|
N/A
|
N/A
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underlying demand for job replacement reasons has weakened due to strong employment market.
|
| Mechanical Workshops |
Occasional
|
$170,000
|
$20,000
|
60% to 80%
|
$70,000
|
30% to 40%
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Weak demand, skilled labour hard to find due to resources boom.
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| Newspaper Delivery Rounds |
weak
|
$130,000
|
$260,000
|
40% - 60%
|
$30,000
|
10%-15%
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Very few recent sales. recent supply chain problems appear to be solved. Outer suburbs rounds are harder to sell. Fewer buyers bow due to strong job market. Web news services are a threat to circulation.
|
| Post Offices |
moderate
|
$170,000
|
$600,000
|
24% to 33%
|
$70,000
|
10% to 15%
|
Strong buyer interest. Regulated niche and good marketing by Australia Post give purchasers confidence, but their volume of snail mail is dropping as consumers embrace new communications technolgies such as Facebook.
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| Professions |
Variable
|
$200,000
|
N/A
|
Variable%
|
$100,000
|
Variable%
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Sell for 20 to 100 cents per dollar of gross fees. Different professions have markedly different demand and value.
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| Recruitment |
Strong
|
$750,000
|
$2,000,000
|
37% to 50%
|
$650,000
|
32% to 40%
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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.
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| Taxi Plates |
Fair
|
$80,000
|
$150,000 -$200,000
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33% to 55%
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$20,000
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7-12%
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Fair demand from investors and prices have stabilised, but government policy changes are a change factor in pricing.
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| Transport Businesses |
Fair
|
$100,000
|
$135,000
|
60% to 90%
|
N/A
|
N/A
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Some demand for trucks with written contracts netting AUD$130,000 plus. Strong jobs market means fewer buyers than before.
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| Travel Agencies Large |
Fair
|
$300,000
|
$250,000
|
750% to 90%
|
$150,000
|
45% to 55%
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Low buyer interest after consumer downturn in 2009. Some signs of increased domestic/international travel rebound. Beware of volcanoes !
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| IT Businesses |
growing
|
$400,000
|
$900,000
|
35%-50%
|
$300,000
|
30%-40%
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Strong demand from industry players to grow their businesses via merger or takeover.
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| Resource Services |
Strong
|
$1,000,000
|
$3,175,000
|
28-35%
|
$900,000
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25-30%
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Any substantial business servicing or distrbuting to the resource sector is in strong demand. WIP and working capital are issues to consider.
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| Trades businesses |
Weak
|
$100,000
|
$130,000
|
70-90%
|
N/A
|
N/A
|
Strong job and labour market weakening buyer interest
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