As the year draws to a close, sellers have always been faced with a dilemma: take a business to market immediately so that it sells before the traditional slowdown or, wait until after the Australia Day long weekend, when business people return from holidays?
With the end of the year in sight, many business owners are asking themselves that same question right now. If you’re one of them, read on.
How the business market works
Traditionally, summer is a great time for business inquiries. December through February is the peak inquiry season. This can be for several reasons;
- Online listings mean people can – and do – browse businesses from wherever they are, including while they’re away on holidays overseas or up the coast. In response to this, business brokers no longer take the same lengthy break they used to. At The Brokerage Connection, we do not stop responding to buyer inquiries, and take time to call and chat with potential buyers of our listed businesses. Our phones and computers are always on!
- People tend to look for changes at the end of another year in their work, business, or even if they are just looking for something different to do. Ideally, having your business listed in November will greatly increase your buyer inquiry, and find that buyer for your business during the peak months of December, January and February.
- People have time while on holidays to browse the internet. During the year, life can be hectic. The working week and weekends with the kids, leaves little time to consider a change of direction in career and business. While sunbaking, swimming in the hotel pool, or just lazy around watching the cricket, people tend to surf the net for their next dream business or leave current employment and buy their first business.
- New Year’s Resolutions – It is always a good call to action when another year is almost over, and a new year is arriving quickly. Many people look to the new year for a new beginning, new business, or becoming their own boss. Resolutions are very strong motivators.
But when to sell – whether now, over the holidays, or sometime in February comes down to a few factors.
Will your business have peak sales leading up to Christmas?
- Buyers want to see great sales figures and profits. If your business has its bestselling period leading up to Christmas, then list now, when you business looks its best. Always sell on a high, don’t wait for when its quiet. The selling process is a minimum of 3 months, so you will be able to keep those extra profits while the sale is going through.
- Expat and overseas buyers, who are often home, or in Australia for the holidays, tend to look at opportunities while visiting family and friends over the Christmas period. We expect this trend to continue in 2019: A weakening Australian Dollar and good buyer inquiry make Sydney’s business market more affordable for overseas buyers than it has been for some time.
So if your business appeals to these buyers, there’s little need to wait until February to list.
Can you afford to wait?
The team at The Brokerage Connection have enough experience to know that good businesses will usually sell through all market conditions. But you will need to allow a little more time and be prepared to meet the market.
So the final question to ask yourself is whether you can afford to wait.
Then again, if your business appeals to buyers now there’s no need to wait and see. Call us today for your free appraisal, and talk about how we can list your business, and sell through the coming peak period for business sales.