What’s Happening in Western Australia’s Business Market, With Rajiv Rajan
What’s Happening in Western Australia’s Business Market, With Rajiv Rajan
A clothing retailer that has remained in the same family for over a century coming to market for the first time is more than just a sale. It reflects a broader shift taking place across Western Australia’s business landscape. For Rajiv Rajan, State Chair of the AIBB WA and a seasoned business broker with over 15 years of experience in business and franchise sales, moments like this are becoming increasingly common.
“The grandson is running the business now, and he’s in his 70s,” Rajiv said. “But his children have no interest in going into retail. So the business is on the market for the first time in 100 years.”
With a degree in economics, an MBA, and international corporate experience before emigrating to Australia and entering broking in 2011, Rajiv has witnessed firsthand how generational change, market conditions, and personal decisions come together in the sale of a business.With
A Market Shaped By Growth
Western Australia’s business sales market is moving through a period of adjustment. After the surge in economic activity following the pandemic, growth is easing into what Rajiv describes as “a more sustainable pace”.
“The business sales market here is fairly consistent,” he said. “We’re still working on the backdrop of a robust but moderating state economy.”
That shift follows several years of extraordinary expansion. Rajiv continued, “I arrived in Western Australia in 2010 when the state’s population sat at around 1.2 million. Today, it is over three million.”
This population growth has reshaped demand for infrastructure, housing, and services.
The scale of that growth has required significant investment. As an example, Rajiv explained, “Some of these roads were built back in the 60s and the 70s when the population wasn't even a million. This infrastructure just can't cope with the volume of both commercial and personal traffic now.”
In general, economic conditions support business transactions.
A State Expanding Beyond Perth
While Perth remains the economic hub, Rajiv is increasingly seeing momentum in regional centres.
“I’ve got quite a few clients now in places like Bunbury, Busselton, and Albany,” he said. “In all these areas, I see a marked increase in business.”
Several factors are driving that shift. Agricultural land values have risen significantly, and some farmers have sold their properties and moved closer to regional towns. The result is fresh capital entering local economies.
“Residential property prices have gone up, agricultural land prices have gone up,” Rajiv said. “People have capitalised on this shift, sold the land and moved into something else.”
Infrastructure investment is also supporting growth outside the metropolitan area. Albany, for example, is undergoing major port works, while road upgrades and construction projects are expanding across the state.
Regional businesses are responding strongly. “The businesses that I see in the regional areas are showing double-digit growth versus 2023 and 2024,” Rajiv noted.
Interstate Buyers On The Move
Population growth is also reshaping the buyer pool for small and medium-sized businesses.
A significant share of enquiries now comes from interstate migrants, particularly from the eastern states where property prices are far higher.
Rajiv recalls one client who sold a modest property on the outskirts of Sydney for more than $2.5 million before relocating to Western Australia.
“He moved to Serpentine, which is a beautiful area just outside the metro,” Rajiv said. “He bought himself a business, escaped corporate life, and paid off his house.”
For many newcomers, Western Australia represents a chance to combine lifestyle with commercial opportunity. Lower competition and strong population growth can create favourable conditions for operators willing to run a hands-on business.
The Challenge Of Labour And Wages
Despite those opportunities, the state’s labour market presents a unique challenge.
“Our unemployment rates are just over mid-threes in WA, which is one of the lowest I've seen in 15 years. It means that everyone who wants a job has one. And resource jobs pay exceptionally well,” Rajiv explained.
He continued, “The mum-and-dad buyers we used to see putting $100,000 or $200,000 into a café are much rarer now.”
For some potential buyers, a secure salary is simply more appealing than the risks of business ownership. Rajiv has seen prospective purchasers abandon deals after accepting steady government or transport jobs.
“The basic salary might be $90,000 a year, and with overtime they can get another 30 or 40 per cent on top,” he explained. “They look at that and think, ' Why take on the responsibility of a commercial lease, staff, and everything else?’”
In regional areas, labour shortages can be even more extreme. Rajiv recalls one hospitality operator in Broome paying a barista $60 an hour simply to keep the café running.
“If I’m not selling coffee, I’m not selling food,” the owner told him. “So the cost to trade is that I have to pay for the labour.”
What Buyers Want Now
These labour dynamics have shifted buyer demand toward larger, more profitable businesses.
At the lower end of the market, companies producing around $100,000 to $200,000 in earnings, transactions can be more difficult. Buyers are increasingly focused on businesses generating significantly stronger returns.
“The demand is for businesses making $600,000 or $700,000 EBIT and above,” Rajiv said.
These enterprises often attract investors who can install professional management and operate them at arm’s length. They also tend to operate in sectors with resilient demand.
Industries connected to the mining supply chain, for example, continue to perform strongly.
“Automotive repair and servicing, tyres, manufacturing, and wholesale supplying the mining industry. Those businesses don’t seem to slow down,” Rajiv said.
Hospitality, by contrast, has faced greater pressure as rising living costs alter consumer behaviour.
“You see people buying a regular-sized coffee instead of a large,” Rajiv observed. “Or ordering one meal and sharing it.”
Building A Career In Broking
For Rajiv himself, business broking represents a rewarding second career.
“It’s been a fabulous second career,” he said. “But it does come with challenges.”
Unlike residential real estate, where agents may complete transactions quickly, business sales can be complex, involve multiple stakeholders, and often many take months. Franchise sales can take six to nine months from listing to settlement and brokers typically receive payment only once the deal is completed.
“You live and die by your last sale,” Rajiv said.
The industry in Western Australia remains relatively small. When he began in 2011, there were perhaps 100+ actively operating in the space.
Today, consolidation is gradually occurring as experienced independent brokers approach retirement and larger brokerage groups expand their presence.
Rajiv himself spent five years working independently before joining Benchmark Business Sales & Valuations.
“Working with Benchmark gives me a much stronger platform,” he said. “Benchmark provides the marketing expertise and significant administrative support allowing me to focus on buyers and sellers.”
Technology Changing The Toolkit
Like many professionals, Rajiv is beginning to incorporate artificial intelligence into his workflow.
He uses digital transcription tools to record meetings and capture notes, allowing him to focus on conversations rather than paperwork.
AI also assists with marketing and research tasks. Instead of spending hours drafting business-for-sale advertisements, he now uses tools such as Perplexity to generate initial drafts, which he then refines.
“It’s a great supplement,” he said. “But you still need to apply your experience to make sure it accurately reflects the business.”
Research has also become more efficient. Rajiv can quickly gather industry data, market statistics, and sector insights that help build stronger information memorandums for clients.
The key, he believes, is precision.
“You have to be very specific in the questions you ask,” he said. “And you still have to check and double-check the information.”
Looking Ahead
Despite economic shifts and labour challenges, Rajiv remains optimistic about the future of business transactions in Western Australia.
Population growth, infrastructure investment, and strong resource industries continue to create opportunities across the state.
For brokers, that translates into a steady flow of businesses coming to market, with many driven by retirement or succession decisions.
And sometimes, those sales mark the end of a long family legacy.
For Rajiv, helping guide those transitions is part of the profession’s deeper value.
Behind every transaction, he notes, there is a story. And sometimes, it is decades in the making.
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