Staying in business: Industry revenue has fallen due to improved economic conditions

The Business Liquidation Services industry has two primary functions: selling the assets of distressed companies and selling excess inventory. As its revenue depends on the failure of other businesses, the industry is countercyclical in nature. A large portion of industry demand is driven by business and personal service providers, construction companies, retailers, wholesalers and manufacturers. Some of these companies use industry services to liquidate stock, while others use industry services for insolvency purposes. Increasing discretionary incomes and retail trade over the past five years have helped curb industry revenue declines over the period. Industry revenue is forecast to decline at an annualised 0.4% over the five years through 2017-18, to total $441.3 million...read more.

Industry Statistics & Market Size
Revenue
$441m
Annual Growth 13-18
-0.4%
Forecast Growth 18-23
Profit
Employment
3,063
Businesses
105

Industry Threats & Opportunities

  • Economic recovery has reduced demand for the industry's services and diminished revenue
  • Demand from the personal and business services market has bolstered industry revenue
  • Business liquidators are likely to generate more revenue from wholesalers over the next five years
  • Industry Report - Industry Key Buyers Chapter

    The Business Liquidation Services industry is characterised by medium market share concentration, with the four largest players estimated to account over 40% of industry revenue. Larger players benefit from economies of scale and economies of scope, where fixed costs can be spread out and a greater variety of stock can be taken on for auctions. However, low barriers to entry limit the ability of large players to completely control the market. The industry also includes smaller players specialising in niche products, such as heavy machinery. Increasing external competition and improving economic conditions have placed pressure on the industry, with several smaller players being forced to exit. Ove...purchase to read more.

    Additional Insights for the Business Liquidation Services Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Business Liquidation Services Industry are

  • Economies of scale
  • Economies of scope
  • Established relationships with lenders and administrators
  • 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 on the sale of stock and fixed assets. The industry excludes wholesalers that take inventory risk, and the sale of items consigned by or on behalf of private individuals. The industry also excludes firms that operate through third-party online platforms.

    Industry Products
  • Online auctions
  • Traditional auctions
  • Industry Activities
  • Traditional auctions
  • Online auctions
  • 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
  • Real household discretionary income
  • Demand from manufacturing
  • Demand from retail trade

  • Current Performance
  • Downstream markets
  • Online shopping
  • Chart: Revenue Growth

  • Industry Outlook
  • Potential opportunities
  • Profit trends
  • Lending practices
  • International trade opportunities
  • 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
  • Other businesses
  • Business and personal services
  • Construction companies
  • 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
  • Depreciation, utilities and other
  • Chart: Cost Structure Benchmarking – Sector vs Business Liquidation Services

  • Basis of Competition
  • Internal competition
  • External competition

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

  • Industry Globalization
    Pickles Auctions Pty Limited, Eclipx Group Limited,
  • Table: Pickles Auctions Pty Limited - financial performance
  • Table: Eclipx Group Limited - financial performance

  • 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 (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)

  • 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.
  • Overstock
  • Excess stock consigned to the industry for liquidation.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Business Liquidation Services market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    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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