QLD 07 3368 4010
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Gold Coast 07 5503 1944
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NSW 02 9602 0360
QLD 07 3368 4010
Gold Coast 07 5503 1944
NSW 02 9602 0360
A “Tale of Two Cities”, the vivid metaphor of Dickens novel juxtaposes the red wine flowing in the streets before, to the red blood that will flow tomorrow. Could this be an apt analogy on the challenges confronting the hospitality industry in Australia today?
As the immense challenges affecting the hospitality industry play out during the disruptions caused by the Covid 19 pandemic, it is worth analysing the factors that are impacting this vibrant and economically important industry and how business brokers continue to play an increasingly important role in realising opportunities for sellers and buyers.
This business sector, even before Covid 19, was being severely disrupted by technology ( ie UBER), increasing costs particularly in wages, occupancy, utilities and cost of goods, a shortage of highly skilled hospitality professionals and with a price ceiling imposed by massive competition. Covid 19 has exacerbated further these challenges by disrupting and changing the very way we live.
Using a skilled and knowledgeable business broker with an intimate knowledge of the industry, who can provide sound advisory services, who have a broad understanding of the industry, who have the confidence and knowledge to be able to provide a valuation based on an intimate knowledge of the market and is capable of factoring in the variances caused by Covid 19, is key to achieving a successful sale in the current market. I believe that it is advisable to look for a Business Broker who is a Registered Business Valuer (RBV) when choosing a Business Broker.
Sellers who have responded positively to the challenges posed by Covid 19, will undoubtedly be in much stronger position to sell their businesses.
The hospitality industry is in the lifeblood of Australia. It is an industry that satisfies the creative flair and instincts in many people, it has dynamism, it offers fun and an excellent platform for securing an income for a whole family. Consequently, we are seeing many active buyers in the marketplace.
The questions posed was, “is your hospitality business sellable?”, well the answer can be a resounding “Yes”.