Our monthly newsletter endeavours to give you insights in to changes and trends we are seeing in the market or industry.
Newsletter - May 2022
Current Transactions
As most of our readers will be aware, Tabak focuses largely at the higher end of the market, and also rarely gets involved in the hospitality and accommodation markets. As such we may be regarded as perhaps a little boutique in nature – but we are happy to report that despite a higher average sale price than many other brokerages, we are still transacting well. Currently we have six businesses under offer and progressing through due diligence, whilst we have at least another six that are close to having an offer made – many of these being reasonably substantial opportunities. Likewise we continue to receive good strong enquiry levels for those opportunities that are being released to market.
Services Businesses
Two of the areas that are considered to remain somewhat challenging throughout the next 12 months or so are the global supply chain shortages and ever increasing international and local freight costs. If you wish to avoid these particular issues in your search for a business, then approximately 25% of the businesses Tabak takes to market are service-based. Generally they are highly systemised, with excellent IP inherent within the business, which is leveraged to make profit on the back of various labour or capital inputs.
A review of these currently being marketed by Tabak shows a variety of sectors covered including:
IT support
Home maintenance services
Property development
Publishing
Recruitment
Tree care
Personal grooming
Electro-plating & Anodising
EWP Hire
Tourism services
Wilding pine control
Health & wellbeing
These businesses generally do not carry a high value of stock or plant, nor are they continually reliant on imported products or components to be able to offer their service to their clients – albeit some capital items used by these businesses may include one off historical purchases such as vehicles or IT equipment. Moreover service businesses can often show greater profitability due to the relatively low input costs, and the ability to often recover staff overhead, often at three times or more what the staff are actually paid.
Listing Pipeline
Having chatted to all of the Tabak regions this morning I can also attest to a strong level of vendor enquiry, with most of our “close to listing” pipelines holding up well, so please continue to review the opportunities listed on our website in the days and weeks to come, as we look forward to meeting your need for a profitable business acquisition.