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

 

FMA: Cigna Admits Making False And Misleading Representations
Cigna Life Insurance New Zealand Limited has admitted to making false and/or misleading representations to customers in proceedings brought by the Financial Markets Authority (FMA) – Te Mana Tātai Hokohoko... More>>


Statistics: Retail Card Spending Down 0.2 Percent In July
Retail card spending fell $11 million (0.2 percent) between June 2022 and July 2022, when adjusted for seasonal effects, Stats NZ said today... More>>




Barfoot & Thompson: Auckland Rental Prices Inch Up Again, But Upward Trend Could Ease In Coming Months

Data from nearly 16,000 rental properties managed by real estate agency Barfoot & Thompson shows Auckland’s average weekly rent rose by $6.12 (or 1 percent) during the second quarter... More>>




ASB: Full Year Results: Building Resilience Today And For Our Future

In its 175th year, ASB has reported a cash net profit after tax of $1,418 million for the 12 months to 30 June 2022, an increase of $122 million or 9% on the prior year... More>>


Commerce Commission: Draft Determination On News Publishers’ Association’s Collective Bargaining Application
The Commerce Commission (Commission) has reached a preliminary view that it should allow the News Publishers’ Association of New Zealand (NPA) to collectively negotiate with Meta and Google... More>>


Heartland: Retirees Facing Pressure From Higher Cost Of Living And Increasing Debt In Retirement

Heartland has seen a significant increase in Reverse Mortgages being used to repay debt. Among the most affected by the increasing living costs are retirees, many of whom are trying to get by on NZ Super alone... More>>