Market Report for Australian eCommerce Business Sales

Every quarter we crunch the numbers so you can see what is happening in the sales of online businesses in Australia. You can find total number of businesses listed, the largest sites for sale and the average multiples. Please note these numbers are best estimates based on our listing data.

Market Report 2022 Q1 Report - January, February, March

Every quarter I aim to provide a state of the industry report on the Australian online business sales world.

There are loads of resources out there on how to buy or sell a business.

But I found it hard to find any up to date reports on the current state of the industry.

I believe the buying and selling of online businesses will grow significantly over the next 10 years.

So I plan to write this quarterly report to help founders check in on the value of their business when they wish to sell.

Contents

Total Number of Listings this Quarter
Largest eCommerce businesses listed this Quarter
Average multiples for Australian eCommerce Businesses
Highest rated Brokers for Australian Online Businesses

1. Number of Listings this Quarter?

This number will be interesting to track as the total of eCommerce businesses in Australia continues to grow. It will be interesting to track the exits as well and see if this is affected by any wider economic indicators. Total Number of Online Businesses Listed in Q1 of 2022 on Aussie Acquire = 227 Listings Total Number of eCommerce Businesses Listed = 195 Listings

View all the current listings

Notes on the number of listings;

As you can see the majority of Aussie online businesses are eCommerce businesses.

This makes sense as a lot of SaaS and content sites target the larger US markets but there were still some unique business models like marketplaces and apps popping up.

You can search all the listings here and break them down by business model here.

Also please note that this list is not 100% of all the Aussie online businesses listed in the quarter.

It is close but I have since found some other places to find listings so next quarter should get even closer to 100%.

If you know a good source of businesses outside of the brokers let me know here and I can add it to the list to check.

All these businesses had a listed valuation of $50k or above.

2. Top 10 Largest Australian Online Businesses Listed this Quarter

Here are the top 10 largest businesses listed this Quarter.

(Please note these are businesses listed for sale by the owners or brokers in the 6-8 figure range, so does not include any public companies or stock market listings etc).

Agency Creating 'Businesses in a Box' for $5.7m - Find out more here
Health Food eCommerce Business: Forest Super Foods for $5.5m - Find out more here
Online Flower Market for $4.5m - Find out more here
Standing Desk Brand for $4.3m - Find out more here
Portfolio of 8 Shopify Stores in the Arts & Crafts niche for $3.4m - Find out more here
Indoor Plants eCommerce Business for $3m - Find out more here
Online Mortgage Broker Business for $2.4m - Find out more here
Online Tax Accounting Practice for $2m - Find out more here
Kitchen & Homewares eCommerce Business for $1.9m - Find out more here
Flat Packed Fire Pits eCommerce Business: Ezy Q for $1.8m - Find out more here

3. What are the average Multiples for eCommerce businesses?

49% of eCommerce listings this quarter had a TTM (Trailing Twelve Months) profit figure. This lets us calculate the multiple based on their asking price.

I have split this into businesses under $500k and over $500k to see if there is much of a difference in multiple.

Average Multiple for eCommerce businesses under $500k asking price = 2.3x (based on 74 listings)

Average Multiple for eCommerce businesses over $500k asking price = 2.7x (based on 20 listings)

As always take these figures with a pinch of salt as they are only based on a relatively small number of listings and are based on the asking price vs the final selling price.

Over the year I will build out an annual report based on an average of all businesses sold that year.

In the meantime we can see if there are meaningful changes in the average multiple each quarter.

4. Which Brokers had the most online business listings?

A lot of traditional business brokers focus on the offline bricks and mortar style businesses.

They may not know much about online businesses and how they work.

You can choose to sell your business yourself or use a broker.

Both ways can work but in general as the size of the business gets larger then it is more likely to involve a broker.

Typically businesses under $50k are sold by the owner and above that you can choose between selling yourself or using a broker.

But if you are looking at brokers, I thought it might be useful to see which brokers have the most experience with online businesses.

Here are the brokers with the most listings in Q1 of 2022.

Please note that total listings is not the same as total sales as a broker could take on lots of deals and not sell any.

There is also a factor of how big the businesses are so I have included an average of the listing prices to give an idea of what range they tend to deal in.

1) Bonza Business & Franchise Sales = average listing price $286k

2) Link Business = average listing price $386k

3) Xcllusive = average listing price $284k

4) The Finn Group = average listing price $384k

5) Mercury 5 Sky = average listing price $675k

6) Business Brokers Network = average listing price $973k

Then there are multiple brokers with less than 10 listings.

Please note the average listing price can be greatly influenced by one large business.

Feel free to message me with your business details and I can let you know which broker has had the most similar sized deals.

You can message me here.

Sam from Aussie Acquire

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