Confidence High as Queensland Brokers Ride the Wave of Business Growth
Confidence High as Queensland Brokers Ride the Wave of Business Growth
The business economy in Queensland is improving consistently, thanks to the activity associated with the Olympics, interstate migration and other infrastructure projects, which is supporting business broker activity.
I interviewed Blair Luckman, the Queensland State Chair of AIBB and he’s positive about the Queensland market “Business is still moving along quite nicely here . And we’re experiencing strong demand for quality businesses.”
“It doesn’t seem to matter what the size of the business, deals are being done at all levels. But there is certainly a stronger demand for higher-value businesses,” he continued.
Business Optimism is Everywhere
Regional towns are also buzzing, “Obviously, the Olympics are going to underpin Southeast Queensland for years. But we are currently selling businesses all over Queensland.”
“Everyone wants to come and live in God’s country,” Blair boasted as an ex-southerner himself. “We are getting interest, not just from people moving up here, but from southern businesses looking to expand their operations into Queensland.”
Despite the positive view of business in Queensland, the supply of businesses to sell is not meeting demand. Blair explained, “Business owners everywhere go through the same life stages - they get to a certain point and they want a different challenge in life, or they want to retire, or something else happens, irrespective of where you live or the outlook for business.”
“Baby boomers who have delayed their exit plan due to various reasons, including Covid are now coming to market. I spoke with one recently who said, ‘I’m now ready to sell’ I replied, 'we've been talking to you for over five years now, great to hear you’re ready to take the first step in transitioning to retirement’ Blair related. “There are plenty of good, quality businesses that have an exit plan. Unfortunately, some of them don’t have a solid exit plan and leave it to chance. Whether you intend to exit now or in 10 years seek expert advice early, it will greatly assist in optimising your return”
“For example, sellers sometimes think they can just sell and walk away, when often the buyer requires a strong handover period. A handover period ensures that all the goodwill is transitioned across properly which at times may be tied in with some financial incentive. A seller that knows their exit will not only help them, but also assist’s the buyer – a win win outcome.
Follow up and Communication are Key
With the abundance of optimism and opportunity for business brokers, Blair identified being straight with business owners as a major key to success as a broker.
“They have been dealing with people as part of their business for years and can quickly sense if you aren’t being straight with them. You won’t get a second chance,” he advised.
“It is advantageous if you understand the financial aspects of business due to the complexity of some deals” he continued. “We don’t want you to be an accountant. If you’re going to be an accountant, be an accountant, not a broker. But you do need to learn the fundamentals.”
“And then you need tenacity and good sales skills,” Blair added. “Customer service and follow-up are critical. Remember that boomer I mentioned before? Five years of following up!”
The AIBB is Setting the Standards
“Unfortunately, the public perception of brokers is sometimes negative. Whether that is a poor experience with a non-trained AIBB broker or the market comparing the simplicity of house selling to brokering a business transaction.
In some cases that perception maybe deserved. By setting ethical and procedural standards to ensure clients have a positive and uniform experience, AIBB is striving to lift the image of business broking as a profession,” Blair explained.
“We work with accountants and solicitors all the time, so it’s important that we are recognised as professionals too,” he continued.
“If a broker doesn’t have the education and doesn’t stick to high ethical standards, other professionals won’t refer to you or work with you. And worse, they will warn their contacts to avoid working with you.”
Blair explains how the AIBB sets you up as a professional.
“The AIBB provides the education and qualifications a business broker needs to carry themselves appropriately in the market place. Moreover, the compulsory professional development requirements help us maintain that standing,” Blair stated. “And, if you are a solo operator or part of a small group, you still have access to the resources you need.
“AIBB is really a friend and colleague who assists with education, training and ongoing support to help you succeed.”
“I see the AIBB as facilitating the rising tide that lifts all boats. I can see that practices that were commonplace 15+ years ago just won’t fly today because of market demands and the standards AIBB members are held to,” Blair concluded.
Annual Conference and the Future of AIBB
Blair encourages all AIBB members to attend the annual conference and local events during the year.
“The speaker lineup this year is very strong, so I’m interested in hearing what they have to say. It’s always valuable to hear ideas from professionals outside business broking that will help us strengthen our profession,” Blair emphasised.
“There’s always at least one idea you can take away and apply to your business.”
“And, of course, there’s the opportunity to catch up with other brokers you haven’t seen face-to-face since last conference or, if you haven’t been before, it’s an opportunity to build your broker network,” Blair highlighted.
“With the advances AIBB is making in the ethical standards, educational requirements and resources as well as general support for members, I’m confident in the future of AIBB as a professional body and its standing in the business sales market.”
“We need more members to join our committees to inject new ideas and skills to keep the train rolling forward. I know there is a diversity of skills in our current membership. Adding that diversity to guide AIBB into the future can only benefit us all,” Blair stated.
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