Sunshine Coast Business Broker Steve Blaby has sold a number of Trade Services businesses. We recently caught up with him to discuss the ins and outs of selling one of these operations. He had some great feedback for owners contemplating selling their business such as:

Important Consideration – Good Quality

Parties interested in acquiring a trade services business pay keen interest in good quality businesses. They’re looking for a reasonable size team of people, preferably with an Operations Manager behind the team.  The main area of trade services is ongoing maintenance as a recurring client base.. 

Priced correctly – Potential buyers

A good trade services business if priced correctly, can be easy to sell.  Prospective buyers would be someone looking at expanding geographically or coming from interstate.  Could be acquired by a National listed company or Listed company looking at expanding their business in different regions.  There is a demand for trade services especially electrical, air conditioning and plumbing.

Important Consideration – Licencing & Strong Customer base

Before parting with their money, prospective investors will need to be clear on any licencing requirements.  Prospective buyers should either have somebody coming in with a licence, the relevant group holding a licence or have it setup in a way that one of the management team holds the licence and will stay with the business.  The licence needs to be clear and sorted before going to market.

It is important to have a wider range of customers on a more regular basis as more predictable for cashflow.  Prospective buyers will look where the work comes from – is it repeat business, from a dynamic website or advertising platform?

Key element is not to have too much concentration on anyone particular customer.  To not be exposed to anymore than 20% to one particular customer.  Have a strong historial trade pattern – growing year on year.  If sales are coming off – have a suitable reason why.  If growth is continual from year on year, it will provide confidence that future profitability is good.

Buyer Demand

In all of Steve’s recent trade service listings, he has experienced strong interest. This is an industry with particularly strong buyer demand as long as it is a good quality trade services business with diverse customer base.

Do you have a trade services business that you are thinking of taking to market? Click here to book a complementary consultation with a market expert.