Does buying a business in regional Victoria interest you? You're not alone. Regional Victoria has close-knit communities, excellent health, transport and education services – and better housing affordability than Melbourne.
The commercial benefits aren't bad either – Australian businesses primarily operating in regional Victoria benefit from a 25 per cent concession on payroll taxes. Furthermore, the region generates a $72 billion economy and contributes nearly one-fifth of the state's total GDP, according to the Victorian government.
Victoria's construction industry grew a whopping $2 billion between 2015 and 2016.
But buying a business for sale in regional Victoria is a significant investment, so it's important to undertake comprehensive research and seek advisory services from specialist accountants in Geelong before proceeding. To get you started, we have compiled a number of market segments that are currently showing promise in regional Victoria.
The Victorian government estimates that approximately 4,000 manufacturing businesses currently call regional Victoria home, making it the state's biggest economic sector. The manufacture of food, power supply products, defence and construction materials, and transport equipment are key industry segments.
There are also government grants of up to $500,000 available through Regional Development Victoria's Manufacturing Program. The money is designed to enable businesses to grow via investment in new technologies and processes.
Victoria's construction industry grew a whopping $2 billion between 2015 and 2016, state government statistics show. The sector contributed $23.9 billion to the economy – and it's not just Melbourne driving activity.
In fact, building permit data from the Victorian Building Authority (VBA) showed rural growth outstripped metropolitan construction between 2015 and 2016. New building permits increased 6.9 per cent in areas outside of Melbourne, while the inner and outer areas of the capital saw only a 3.4 per cent rise.
Moreover, the VBA recorded a record year for construction in 2017, with 112,000 building permits approved at a value of $36 billion. Construction businesses for sale in regional Victoria could therefore offer lucrative opportunities for entrepreneurs.
Victoria has more regions and individual wineries than any other state, according to Wine Australia – this despite it being the second smallest state in the country. The state government hopes the industry's success will go from strength to strength and is providing significant support to businesses as a result.
RT @Anne_Ruston: BREAKING: Aussie wine export values are the highest in a decade, increasing by 16 per cent to $2.65 billion in the year to March. Good news for regional jobs & rural Australia #auspol pic.twitter.com/w2KSTVyBWG #aussiewine
— Wine Australia (@Wine_Australia) April 15, 2018
The Wine Growth Fund recently offered grants of $20,000 and $50,000 for individual and group-run projects, respectively. The closing date for the latest round of funding was 15 September 2017, but businesses should keep their eyes peeled for future government assistance and opportunities in the sector. Alternatively, other finance options may also be available.
OK, we may be cheating a little here by bundling six sectors into one, but the state government has identified these 'Future Industries' as having an extraordinary capacity for market growth. Businesses for sale outside Melbourne in these key sectors are likely to be snapped up quickly:
- Medical technologies and pharmaceuticals;
- Professional services;
- New energy technologies;
- Food and fibre;
- International education; and
- Transport, defence and construction technologies.
Some of these overlap with manufacturing, but considering Regional Development Victoria has earmarked $200 million of funding for these industries specifically, they are worth a separate mention.
Do you want to purchase or sell a business in Australia?
The purchase or sale of a business is a complex process that requires effective due diligence at every step. Has a realistic sale price been established? Do you have the right financing options in place? Is a business broker required?
These are just a few of the many questions that you must ask yourself before going ahead with buying or selling a business. But WMC Accounting can provide assistance in all these areas and more. Please book an appointment today to learn more about our extensive range of business advisory services.