Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


New Zealand business owners look inwards for successors

Media release

24 February 2014

New Zealand business owners look inwards for successors


Click for big version.

New Zealand business owners are ranked among the highest in the world in their desire to have existing staff to buy their businesses.

The latest research by accounting firm Grant Thornton showed that 64% of New Zealand business owners are relying on staff to buy their businesses. Only Japan and the Philippines (68%) had higher figures amongst the 45 countries surveyed. 

Pam Newlove, Chair of Grant Thornton New Zealand’s Board, said that such a high figure highlights the importance of business owners having a comprehensive, long-term, plan in place, to ensure this will happen.

"One of the big pressures on businesses at present is retaining staff. Unemployment is down to 6%, one of the lowest figures for several years, so holding onto staff is the first priority.

“This means key talent must be nurtured.  To retain staff from Generation X and Y, employers will need to be innovative in their management styles.  This may come as a surprise to more traditional thinking business leaders.

“Buying a business is not a spur of the moment consideration. Owners need to be asking themselves today: 'Is there a staff member capable of running this business? Would they want to? How will they finance it? And how many years will it be until they are ready to take over?'

"And that’s really just the start."

Newlove said that it is a particularly important subject in New Zealand because of the high number of privately owned businesses looking to change hands in the next 10 years. 

"Our most recent research shows that a staggering 69% are looking to do so.  We are an economy based on small businesses so that is an enormous amount of change, mainly relying on existing staff to step up and stump up the money.

“It’s interesting that so many business owners consider that there is such talent within the business and that those employees will have the desire to make the ownership commitment.

“Therefore it’s important that business owners sit down with the desired employee to investigate suitability, appetite and to plan the future transition.”

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Media: Julian Wilcox Leaves Māori TV

Māori Television has confirmed the resignation of Head of News and Production Julian Wilcox. Mr Maxwell acknowledged Mr Wilcox’s significant contribution to Māori Television since joining the organisation in 2004. More>>

ALSO:

Genetics: New Heat Tolerant Cow Developed

Hamilton, New Zealand-based Dairy Solutionz Ltd has led an expert genetics team to develop a new dairy cow breed conditioned to thrive in lower elevation tropical climates and achieve high milk production under heat stress. More>>

Fractals: Thousands More Business Cards Needed To Build Giant Sponge

New Zealand is taking part in a global event this weekend to build a Menger Sponge using 15 million business cards but local organisers say they are thousands of business cards short. More>>

Scoop Business: NZ Net Migration Rises To Annual Record In September

New Zealand’s annual net migration rose to a record in September, beating government forecasts, as the inflow was spurred by student arrivals from India and Kiwis returning home from Australia. More>>

ALSO:

Scoop Business: Fletcher To Close Its Christchurch Insulation Plant, Cut 29 Jobs

Fletcher Building, New Zealand’s largest listed company, will close its Christchurch insulation factory, as it consolidates its Tasman Insulations operations in a “highly competitive market”. More>>

ALSO:

Scoop Business: Novartis Adds Nine New Treatments Under Pharmac Deal

Novartis New Zealand, the local unit of the global pharmaceuticals firm, has added nine new treatments in a far-ranging agreement with government drug buying agency, Pharmac. More>>

ALSO:

Crown Accounts: English Wary On Tax Take, Could Threaten Surplus

Finance Minister Bill English is warning the tax take may come in below forecast in the current financial year, as figures released today confirm it was short by nearly $1 billion in the year to June 30 and English warned of the potential impact of slumping receipts from agricultural exports. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news