Courts Rule Against Banks In October Liquidations

In the October 2012 Business Builders Update we cover

Court Ruled Liquidations On The Rise [0:28]

A recent article in the Sydney Morning Herald was talking about Insolvencies at Record Highs.
In fact this year in particular there’s been a massive rise with Taylor Woodings back in May, releasing statistics that showed nine thousand and seventy four businesses had gone out of business this year alone. That was back in May talking about up until February 2012 only and a large proportion of them had been liquidated, and an even larger portion of those liquidations were court ruled liquidations.

What this has meant is that banks and the ATO have basically taken the business owners to court and the courts had ruled that the business needs to be wound up and put into administration.

This means there has been a huge glutton of businesses on the market for sale and a lot of liquidated businesses. In fact there are now more businesses for sale than there are buyers looking to buy, which is making the sales cycle a long process, making it hard for liquidators to cash in quickly.

Banks Now Siding With The Business Owners [1:20]

Because of this slow moving market, the focus is moving away from court ruled liquidations and banks are actually now opting to negotiate with the business owners to try and find a way to keep them in business longer. The banks are finding it hard to actually sell these businesses because of this highly competitive market and they’d now rather see the businesses stay in business a little bit longer and maybe be able to fix their problems and get themselves out of trouble, so that the banks can get their money back.

The Current Business For Sale Market [1:54]

Currently what is the state of the market if you’re looking to buy or looking to sell?
Well its good news for buyers and bad news for sellers because it is very much a buyer’s market right now!
As previously mentioned, there is a huge amount of businesses for sale and there are more businesses for sale than there are buyers and there is a couple of reasons for this;

First there’s these court ruled liquidations and the fact that because the economy, especially the retail economy, has slowed down and so a lot of businesses are finding it tough. It’s meant that it’s a lot of businesses that are deciding to sell, or they’re sadly going out of business and are trying to sell to get some quick cash rather than shut the doors.

Then there’s also the fact that we’ve got a rising population of Baby Boomers. A lot of 50+ year olds who started their own businesses over the years and they’re now looking to get out, and more and more of them are looking at ways to sell.

What’s Happening In October [3:00]

This month I’m coming to Melbourne on the 16th of October and I’m coming to run my popular How to Buy a Business for a Dollar intensive. Be sure to register and come along. I would love to see you there.

In November we also have our 3 Day Business Builders Boot Camp, I would love to see you there as well.

Until next update, go out and live life 110%.
– Carl

About The Author

Carl Taylor

Carl is the Author of Red Means Go! and founder of Business Builders Academy. He invests in and runs a number of businesses, and regularly teaches business skills through online training and live speaking events.