With a host of baby boomers reaching retirement age there has been a long held view that a tidal wave of privately owned New Zealand businesses will change hands over the next few years. However for a range of reasons, such as the uncertainty created by the global recession, restrictions in the local market for available sources of capital and debt funding, and unforeseen circumstances such as the Canterbury earthquakes, there has been a swing in the views of business owners such that the majority (60%) now see a gradual or partial sell down as a more preferred route.

Combined with the fact that 82% of business owners feel that now is not a good time to sell, it is our view that identifying appropriate successors and establishing a gradual succession plan is more important than ever for privately owned businesses to allow for a transition of the business to the next set of owners.

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Succession, Ownership & Pay press release.