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Friday, September 10, 2010

Whats in store for SME West Australia 2011

We asked the Guru analyst/broker from GMO Richard Marr

What’s in store for 2011?

In the SME business sales marketplace we anticipate:

1. Profits to recover some lost ground


2. Sellers who delayed their sale due to the GFC re-entering the selling arena

3. The big four banks and their two satellites to continue to be cautious in their suitability, serviceability and security analysis of business loanapplications


4. The fringe lenders to become more relevant in SME lending in 20115. The supply of small and micro businesses for sale to increase
6. The supply of medium businesses for sale to increase
7. Interest rates more likely to rise than fall – but the loan funding pool available for SME is likely to improve
8. The supply of buyers in various categories to be affected by the implied reduction in business migrants (as a consequence of policies announced during the election campaign)
9. The supply of buyers to also be affected by the unemployment rate in WA. If the rate trends down below 4% as predicted by the Chamber of Commerce and Industry- sellers will have few buyers entering the market place due to retrenchments
10. The possible combination of increased supply and marginally reduced demand would indicate price earnings ratios or ROI percentages will not trend positively for sellers of small and micro businesses in 2011
11. The larger your business- the better the prospects for a pleasing sale outcome, whilst conversely the smaller and more marginal the business, the greater the degree of difficulty in obtaining buyer interest.

View GMO's informative newsletter, FREE online (below).  See a cross selection of Biz for sale in WA and at what price, get the inside tips from the experts... it's a great read (AND FREE)...
Special article includes "We examine larger business transactions and the price earning relationship in businesses valued between $3million and $60 million"
Matching the market knowledge in the specialised Corporate Insurance market we sought the opinion of Aaron Wilson - Senior Account Manager and Associate partner with Central Insurance Brokers.

pic left - Aaron Wilson - Associate Partner Central Insurance Brokers

The West Australian market is unique in mainly respects, land mass, population but lets talk the obvious! For the past 3 years, with exception of GFC and the Federal political wobbles W.A. has been an "on heat" and the evidence of mass re employment to the mining section,  providing they face minimal interference (polies) Perth will continue to catapult. 

Central Insurance brokerage was established in 1978 by our founding Director Phillip Smith, it's by his relentless pursuit for Industry excellence and stability of onboard long standing fellow Directors Simon Wardman and Noel Carter that Central continues to be in high demand. We place high expectation on our client service standards and the evidence of that success is inarguable from our trading trends.

The past trading period, when the market was in question we excelled, well above market trends and post June reports show we are at the highest gain to Budget and KPI's against benchmarks.

It's one thing to get to number one and it's a whole new ball game staying there. Now we, like many need to be objective and con-concurrent with the new age worker culture given the resource shortage.

The work place 3 G factor
The recent market assessment by International recruitment brokers TMS predicts tough times ahead - to see the in depth report include PPS slide show click here.

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