Business Broker Bulletin™

Welcome to your monthly Newsletter about Business Brokerage.







These works on the NSW market confirms several aspects that have been noted also in the QLD Market such as:

  • around 2/3 of companies are single owner-operator (or with 1 partner/broker). In spite of that, they just list around 10% of businesses
  • the other side of the pyramid shows 5-10% of companies represent between 65-80% of all listings

This would certainly indicate that the industry is consolidating and concentrating more and more in the model of large companies – with the small ones holding only a minor number of listings (note: we are not judging quality, only the quantity)

Also, I have noticed that a number of them try to fake their total listings using several bad practices, such as:

a) Not removing old listings and pretending they are still active
b) Repeating the same business 2 or 3 times
c) If they have one brand of a franchise, they list 10 or 20 cities, addresses, states etc. giving the idea of much larger amount of listing (yes I accept this is debatable)
d) some businesses are marked as SOLD, so many business (about 500 in 2 years with less than 5 agents). If even half of this claim was true, I am positive that the owner would have retired many years ago. (I noticed one in particular who apparently somehow sold 85% of all business he listed in the past 3 years -and the 15% are the ones he is trying sell now… And no, he didn’t withdraw the unsold.)
e) Some companies advertise their  presence as being on a National Level but they are local and even local they have a very small team (or just the owner).

In our next edition, we are aiming to present the statistics for Victoria, thereby completing the 3 larger states and later we hope to be able to complete the work for the remaining states and territories.

We hope these works can help people understand better our industry and the challenges we face.

There are many further conclusions that can be drawn from this work and, at some near opportunity, we hope to be able to address these.

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