Business broker reveals what’s driving Sunshine Coast market
Prospective retirees are in the prime position to sell their business with migration and a need for financial security driving the Sunshine Coast market.
Business
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Businesses are selling quicker than pre-Covid rates with one agency revealing the trend is the result of workers seeking job security.
Sunshine Coast brokers Savvy Business have about a dozen listings compared to their usual number of 70 dating back to pre-Covid.
About eight of these listings are already under contract and with settlements often occurring within three months of a business hitting the market.
Agency principal Rod Russell said this surge is likely due to sellers holding off due to inconsistent trading conditions through Covid, and an abundance of buyers looking for the right opportunity to purchase.
“Covid decimated business sales in the financial year 2021, however, since then migration to the Sunshine Coast has been unprecedented, which of course dramatically increased the demand for quality businesses,” Mr Russell said.
Mr Russell said sales surged in 2022 and 2023 with the average price for a business being $1.45m.
“An investment at this price point will yield net profits around $400 000 – $450 000 per annum, or $8000 per week,” Mr Russell said.
He said supply was at an “lowest” but demand had never been higher – mainly driven by those wanting to guarantee a wage.
“It’s quite difficult to earn a premium wage on the Coast and with the increased cost-of-living, many families cannot survive on a basic wage,” he said.
Mr Russell said Sunshine Coast business owners considering retirement were in an ideal position to sell.
“The reason people move here is for a better lifestyle, so the businesses that attract most attention are those that have management in place, with key staff who are capable of running the business in the owners’ absence,” he said.
Buyers Nicholas and Cassie Madge recently purchased Jax Tyres and Auto in Noosaville after living in Tasmania for 13 years.
Mr Madge, who grew up on the Sunshine Coast, said it was the right time to buy a ”recession-proof” business.
The former hospitality worker said he wanted to move into an industry with more job security and a change of pace.
Mr Madge the process in looking for a business had been “very quick,” taking only about six months to find Jax Tyres and Auto.
Mr Madge said he had an “extensive” history of owning businesses including 25 years of owning pizza shops, eight years in bottle shop management and experience in running several small businesses of his own.
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