Losing by default: Improved economic conditions are reducing demand for industry services

Operators in the Business Liquidation Services industry are typically an independent person or organisation that takes control of an insolvent company's affairs so that it can be wound up in a fair way that benefits all creditors. The three types of liquidation are court-ordered liquidation, creditors' voluntary liquidation, and members' voluntary liquidation. As the industry's revenue depends on the failure of other businesses, the industry is countercyclical in nature. Business, personal, and administrative service providers drive a large proportion of industry revenue. Construction companies, retailers, and wholesalers are also large markets for industry services. Industry revenue is forecast to decline at an annualised 0.3% over the five years through 2018-19, to total $436.8...read more.

Industry Statistics & Market Size
Revenue
$437m
Annual Growth 14-19
-0.3%
Forecast Growth 19-24
Profit
Employment
2,983
Businesses
215
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Economic recovery has reduced demand for the industry's services and diminished revenue
  • Increased insolvency in the personal, business, and administration market has limited declines in industry revenue
  • Business liquidators are likely to generate more revenue from wholesalers over the next five years
  • Industry Report - Starting a New Business Chapter

    The Business Liquidation Services industry exhibits medium barriers to entry for potential entrants. Low capital costs are required to enter the industry, with the shift towards online platforms limiting the need for a physical office space. The main barrier to entry is the highly skilled nature of providing business liquidation advice. This generally requires industry employees to hold an accredited university degree in accounting or law, and have appropriate practical legal training...purchase to read more.

    Additional Insights for the Business Liquidation Services Industry

    IBISWorld has determined the most important Key Success Factors for the Business Liquidation Services are:

  • Having a good reputation
  • Access to niche markets
  • Having contacts within key markets
  • IBISWorld analysts also discuss how external factors such as Business bankruptcies and Total business profit in the Business Liquidation Services industry impact industry performance..

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    What's in this report

    What is the Business Liquidation Services Industry?

    Industry firms offer liquidation services to businesses. Operators generate revenue as a commission or fixed fee for the services they provide.

    Industry Products
  • Online auctions
  • Traditional auctions
  • Industry Activities
  • Court liquidations
  • Creditors’ voluntary liquidation
  • Members' voluntary liquidation
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Business bankruptcies
  • Total business profit
  • Demand from retail trade
  • Real household discretionary income

  • Current Performance
  • Downstream markets
  • Industry regulation and barriers to entry
  • Insolvency appointments, business bankruptcies and administration
  • Chart: Revenue Growth

  • Industry Outlook
  • Potential opportunities
  • Profit trends
  • Lending practices
  • Globalisation
  • Table: Business Liquidation Services Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Business Liquidation Services Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Construction
  • Retail Trade
  • Accounting Services
  • National and Regional Commercial Banks
  • Consumers

  • Key Selling Industries
  • Internet Service Providers

  • Products & Services
  • Traditional auctions
  • Online auctions
  • Chart: Business Liquidation Services Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Business, personal, and administrative services
  • Construction companies
  • Other businesses
  • Retailers
  • Manufacturers
  • Wholesalers
  • Chart: Major Market Segmentation for the Business Liquidation Services Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Wages
  • Rent, utilities and depreciation
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Business Liquidation Services

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Business Liquidation Services Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Business Liquidation Services Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Business Liquidation Services Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Administration
  • When a business is forced to restructure or go into liquidation.
  • Insolvency
  • A company's inability to pay its debtors, usually accompanied by liabilities exceeding assets.
  • Liquidation
  • The process of bringing a business to an end and distributing its assets to claimants.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Business Liquidation Services market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Business Liquidation Services:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Business Liquidation Services market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Business Liquidation Services, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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