How the market for buying RTO businesses has changed in Australia in the last 6-months.

The market for buying businesses in Australia is constantly evolving, so it is important to stay up-to-date on the latest trends.

 

Based on our intimate RTO industry experience there are a few leanings I want to share with you. Whilst the trends themselves are not all rosy, there are certainly ways to maximise the opportunity as a RTO vendor.

 

This will not apply to every single RTO however I have also tried not to over generalise. I am always happy to discuss specifics and encourage you to book a meeting to discuss the market as of Spring 2023.

 

• The number of RTO businesses up for sale has increased.
• The average asking price for RTO businesses has maintained their value.
• Regulatory pressures have increased.
• Buyers are more focused on finding RTO businesses that are recession resistant.
• Buyers are more likely to finance their business purchases with debt.
• The “cost” of money has increased as bank rates increase.
• Seller expectation is somewhat mis-aligned.
• CRICOS sales are at an all-time low.
• A good RTO is STILL a good RTO.
• RTOs that are sale-ready achieve premium prices.
• RTO sales are taking longer
• The RTO market is forever changing and there should not be a reliance on market history.
• Buyers are becoming less tolerant to risk.
• For a purchaser, price is what you pay, value is what you want.
• The balance of power is shifting
• Buyers are wanting to negotiate and in the absence of correct market intelligence they will win. (This is certainly avoidable)

 

As I said, on the surface it sounds less than ideal for a vendor however it certainly is not all doom and gloom. Here is why:

 

• RTOs that are prepared have suffered no difference in pricing or in timing.
• Selling your business when you NEED to sell it is less desirable than when you WANT to sell it.
• Not all RTOs have suffered decline and stress.
• Get professional advice from an industry specialist business broker.
• Ask questions on price, terms, timing and what buyers are looking for.
• DO NOT try and do it yourself
• Be sale ready
• Be patient.
• Infinity Business Brokers are the RTO SPECIALISTS.

 

We do not just sell the RTO, we work closely with vendors to create a sale-ready RTO. By doing so, we consistently achieve the three goals.

 

1. Highest Price
2. Least amount of time
3. Best terms

 

Selling a RTO is no fluke. With over 130 RTO sales in the bag, we can confidently report RTO that are sale-ready achieve the desired result in the desired time-frame.

 

Do you want to know how to get your RTO sale ready? – Contact the Team at Infinity Business Brokers

Are you a buyer wanting to buy a sale-ready RTO – Contact the Team at Infinity Business Brokers