July 2024 market data for Queensland business brokers

The Australian Institute of Business Brokers often runs member surveys to best understand the current landscape for brokers in Queensland. Here are the results from our survey in July 2024.

The past year has brought a dynamic and evolving landscape for business brokers. As we continue to adapt to market fluctuations, understanding the current trends and challenges is crucial for success. 

The insights from this quiz provide a comprehensive overview of the current state of the business brokerage market. While challenges such as overvaluation and access to finance persist, there are also positive signs of strong market activity and strategic buyer interest. 

Business brokers must navigate these complexities with agility, staying informed about economic trends, and supporting both buyers and sellers through informed guidance.

Here are the results:

How are you finding the market in the last 12 months?

40% - Strong: Business activity has been brisk, with high demand and good sale prices.
32% - Steady: The market has been consistent, with a normal flow of buyers and sellers.
28% - Soft: There's been a decrease in buyer activity or sale prices have softened.

What is one issue you are facing as a business broker?

21% - Finding qualified buyers: There's a lack of qualified buyers for the businesses I represent.
23% - Access to finance: Buyers are struggling to secure financing for acquisitions.
3% - We see the market has never changed in 46 years
52% - Overvaluation of businesses: Sellers have unrealistic expectations of their business value.

Are there any trends you are witnessing at present?

51% - Focus on profitability over growth: Buyers prioritise profitability over rapid business expansion.
10% - Rise of younger entrepreneurs: There's an increase in younger individuals entering the business ownership market.
8% - None in particular
31% - Increased demand in specific industries. Eg:  NDIS

How do you expect the market to perform in the next 12 months?

40% - Positive
60% - Neutral

What factors do you believe will have the biggest impact on the market in the coming year?

90% - Economic conditions
10% - Interest rates

Are there any specific buyer demographics that are more active currently?

9% Financial investors
29% - First-time business owners
15% - Groups
47% - Strategic Buyers

In your experience, what are the biggest challenges buyers are facing in today's market?

19% - Due diligence complexity
67% - Financing
8% - High % of deals going through with some Vendor finance to keep sale price higher
6% - Competition for deals

Have you seen any changes in the average time it takes to sell a business?

52% - Increasing
37% - Staying the same
11% - Decreasing

Does this reflect how you see the business broking environment in Queensland at the moment?

What other trends are you seeing?

An invaluable asset for Members of the Australian Institute of Business Brokers (AIBB) Australian business brokers is our proprietary software – Bizstats.

Bizstats is the only aggregation of business sales data in Australia. Think RP Data for businesses! It offers comprehensive data and insights essential for accurate business valuations. Leveraging this tool, AIBB members can access detailed financial statistics, industry benchmarks, and performance metrics. This ensures precise and informed appraisals. Next month we will dive further into some Bizstats data.

For those seeking to enhance their expertise and navigate these market dynamics more effectively, the Australian Institute of Business Brokers (AIBB) offers valuable resources and support. Find out more about how AIBB membership and REIQ membership can benefit you.  

Read another article from the REIQ: Unlicensed real estate agent takes trust money and falsifies records.

Or read our news and updates here.