The team at the Business Brokers Bulletin conducted a very interesting research and came up with the following statistics regarding the Business Brokerage industry in Queensland.
|No. Brokers||No. Agents||Listings||Average/Company||Average per agent|
Broker = Business Brokerage Firm
Agent = Agent’s Representative, employed by Business Brokerage Firm (“Broker”)
Here are some conclusions we have been able to draw from this:
- There are 94 firm advertising that they sell businesses. Despite that, 15 of them do not seem to have any space where they actually do advertise businesses. Most appear to be just Real Estate Agencies. The real number of operators then appears to be 79.
- Out of these 79, 47 are sole traders (owner-operator) agencies or a partnership without a broker. This represents 60% of the entire industry. In terms of listings – this represents only 22% of the total.
- From these 47 owner-operator businesses, 33 (which we’ll call Group A) are one-person businesses (no partners) and they have 330 businesses in their folio. That means an average 10 businesses per each owner-operator.
- The Balance, being Groups AB and B2, have up to 3 brokers.
- The least productive segment is the “b3-c”, when a firm has between3-10 agents. Most have 3-5 agents and just a few of them have 5-10. This segment has the lowest number of listings per broker.
- We have found that 4 firms appear to post the same listings over and over again, thereby appearing to show that they have 3x to 5x more listings than they actually do.
- Group D involve large brokers and this one have the best average number of listings/agents.
- We took these firms out of the calculations (the list above). However, there are certainly firms with “repeat listings” which clouded our ability to analyse accurately.
- We have also identified certain firm who have franchises and they advertise 20+ adds (covering several open geographical areas) – this does not necessarily reflect the real number of businesses for sale.
- Most websites do not have a blog space and the ones that do, mostly have outdated content or no content at all.
- In view of the above, it is our opinion that this industry will experience some consolidation in the coming 2-5 years