Market Update Relevant to Your Sale

I want to also share with you what we are doing to stay on top of this downturn.

This is something I do NOT share with BUYERS. This is for you.

Macro-level factors
1. Economic uncertainty:
2. Inflationary pressures,
3. Rising interest rates, and
4. Geopolitical tensions have created a climate of apprehension and risk aversion, leading to a more cautious approach to investments. This hesitancy has naturally translated into RTO sales.
5. Regulatory changes: Regulatory changes and policy shifts have added another layer of complexity to the RTO environment. As governing bodies strive to balance environmental concerns with economic realities, the regulatory landscape has become increasingly dynamic and challenging to navigate. This evolving regulatory landscape has made it difficult for RTO vendors to plan effectively and secure long-term contracts and this then reflects in buyers.
• State V Federal conflicts for cash. This is not necessarily a Liberal V labour but each state has differing priorities and different bank reserves. This does not just affect funded RTOs either. Power plays between state and federal is causing buyer unease.
• Talent shortage: The talent shortage within the RTO industry has made it increasingly difficult to recruit and retain skilled professionals, further exacerbating the challenges faced by vendors.
• COVID meant some people stockpiled RTOs meaning they have sufficient capacity. The best example of this are buyers who bought Shell RTO and turned them into CRICOS. This means there are a few less buyers looking at shell RTO now.
• COVID caused burn out of some RTO owners meaning 10% more RTO for sale at present compared to this time last year.
• For CRICOS, the COVID time was even more diabolical and this includes the COVID – ERA VISA

Our extensive research shows buyer demand is down around 17%. This reflects an across the board decrease in general buyers (NOT RTO) of 22%.
This has been a time to review and improve all of our processes to ensure when the buyer is there, they are ready to buy and ready to buy your RTOs. We are spending increased time with the buyers to ensure they are “game-ready”.

We are now spending more time making sure you as a seller are “Sale Ready”. We KNOW if the RTO is prepared and completely ready, the sales are happening and we are achieving your goals of:
• Highest Price
• Least amount of time
• Best possible Terms

We are marketing more to our database of over 7100 Registered RTO Buyers. We know we have the largest buyer network and we plan on using this to get you the result. We will now be sending an email out every 3 weeks to our buyers highlighting listings like yours.

We are constantly increasing our social media presence. I know this is not the way we are going to sell large businesses BUT I will fight for every single enquiry and every single buyer to get the result for you.

We have increased the paid advertising we spend and increased the websites where we pay for advertising. As you know, we are side by side with you on this journey and as such do not get paid one cent prior to you getting paid. We are still happy to take all this risk and just because times are tougher in the market will not detract from our belief in working in partnership with you. We are increasing the exposure your RTO will receive.
I am optimistic and positive about the future of the RTO industry. This is a dynamic and ever-evolving market, and the opportunities remain abundant. This sale downturn we are in will not last and history has dictated this time and time again.

Now there are some things you can do as a part of the partnership.

1. If I have not already, I want to shoot a video with you on your business that will only go out to interested buyers that are registered and have signed a Non-Disclosure document. We have trialled the success of these videos and the results have been remarkable. It is a game changer and cuts down significantly on time for a buyer to reach the decision and more importantly, it is an informed decision. Please reach out to me about this and I will lock in a time.

2. Think like a buyer. If you were a buyer looking at multiple RTOs, what would affect your decision making? When you invest in something, what is important to you as a buyer. If you think like a buyer, it may also help re-align your expectations. If we know the market has changed, Do we need to have a discussion on where our expectations also need to be? Do we need to have a discussion on timings now the market has changed? If so, please, please reach out and book a time for a meeting. (I prefer to book a time so I can then devote that time to you with noting getting in the road.)

3. BE SALE READY Our results EMPHATICALLY show the more SALE READY we are, the better equipped we will be to achieving your goals of:
• Highest Price
• Least amount of time
• Best possible Terms