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

 

Overseas investment boosts New Zealand businesses

Overseas investment boosts New Zealand businesses


New Zealand business owners are enjoying the benefits of overseas investment, and there are plenty of other Australian publicly-listed and private equity firms keen to put more money into businesses on this side of the Tasman.

The merger and acquisitions arm of leading mid-tier accountancy firm Staples Rodway recently concluded a deal for an Australian publicly-listed company to purchase an Auckland-based business, which had many advantages.

Wesfarmers Industrial and Safety NZ Limited (WISNZ) acquired Associated Process Controls Limited and APC Services Limited (APC), which specialises in the supply, service and support of environmental monitoring equipment used by a wide range of customers.

Cameron White, an advisor from Staples Rodway’s specialist mergers and acquisitions arm, which was recently rebranded Baker Tilly (NZ) Transaction Services Limited, says the deal created a win-win situation for both parties.

“APC’s owners sold on favourable terms, but they will also will have an ongoing involvement in the business and now have a defined exit strategy for themselves. For WISNZ, the deal strengthens their position in a relatively small and concentrated market and provides the opportunity for technical differentiation from their competitors, which will increase the range of services they can offer.”

Mr White says with New Zealand’s generation of baby boomers running successful and valuable, but typically middle-market and family-owned businesses, many will need exit strategies in the coming years.

“There is a real lack of capital in New Zealand to adequately transition these businesses and so there is a very real danger that they will end up deteriorating in value or closing if they can’t get the capital they need. Overseas equity can provide a great solution for these business owners, and as with the WISNZ example, it doesn’t mean the existing owners can’t continue to be involved.”

It was through Staples Rodway’s associate, Baker Tilly International, which has five offices across Australia, that the potential buyers of APC were identified. During the process many more Australian companies indicated they were also keen to invest here, says Mr White.

“There is significant interest from Australian publicly-listed companies, and we have also had direct contact with a number of Australian private equity firms. New Zealand and its business owners shouldn’t be afraid of this, as it provides benefits including more access to equity capital, a solution to succession planning, the potential to protect the long term interests of employees, and it also means you don’t have to sell to a competitor” he says.

For more information, please visit www.btts.co.nz.

ends

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

CTU 2021 Work Life Survey: COVID And Bullying Hit Workplaces Hard, Huge Support For Increased Sick Leave

New data from the CTU’s annual work life survey shows a snapshot of working people’s experiences and outlook heading out of 2020 and into the new year. Concerningly 42% of respondents cite workplace bullying as an issue in their workplace - a number ... More>>

Smelter: Tiwai Deal Gives Time For Managed Transition

Today’s deal between Meridian and Rio Tinto for the Tiwai smelter to remain open another four years provides time for a managed transition for Southland. “The deal provides welcome certainty to the Southland community by protecting jobs and incomes as the region plans for the future. The Government is committed to working on a managed transition with the local community,” Grant Robertson said. More>>

ALSO:

Economy: Strong Job Ad Performance In Quarter Four

SEEK Quarterly Employment Report data shows a positive q/q performance with a 19% national growth in jobs advertised during Q4 2020, which includes October, November and December. Comparing quarter 4, 2020, with the same quarter in 2019 shows that job ad volumes are 7% lower...More>>

NIWA: 2020 - NZ’s 7th-warmest Year On Record

The nationwide average temperature for 2020, calculated using stations in NIWA’s seven-station temperature series which began in 1909, was 13.24°C (0.63°C above the 1981–2010 annual average). New Zealand’s hottest year on record remains 2016, when... More>>

Quotable Value New Zealand: Property Market Set To Cool From Sizzling To Warm In 2021

Nostradamus himself could not have predicted the strange series of events that befell our world in 2020 – nor the wild trajectory of New Zealand’s property market, which has gone from “doom and gloom” to “boom and Zoom” in record time. Even ... More>>

PriceSpy: Research Reveals How Shopping Behaviours Have Changed This Christmas

According to a new survey* from PriceSpy , almost 50 per cent of Kiwis are looking to shop locally this Christmas in light of Covid-19; The research also found consumers are changing their shopping habits, with one in seven (14 per cent) getting super-organised ... More>>