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


Business Succession – Is Now the Time to Move?

After a turbulent 18 months for business owners, business owner transition company Platform 1 have found owners facing succession are starting now to think about moving forward. We know now that Covid will have some impact on lives and businesses for some time to come, so will there be an acceleration of business owners exiting?

A recent June Platform 1 business owner survey found there was a decrease in business owners thinking of delaying their exit compared to the same survey conducted after the first lockdown in 2020. This was from 25% down to 17%. “This is consistent with the noticeable increased level of activity we are experiencing from business owners facing this challenge” said Platform 1 Director Mike Warmington.

To some extent lockdown has given business owners more time to think about their business and work on it. One respondent from the anonymous survey said, “Given me a lot more time to think about a correct succession plan that suits my style of business”.

Less business owners now believe it would be more difficult to find a buyer with a reduction from 41% in 2020 to 23% in 2021 shown in the surveys.

Lockdowns over the last 18 months have also set back the plans of incoming entrepreneurs looking for a business. Platform 1 are experiencing stronger demand from people looking to gradually transition into a business. “This has resulted in people with a strong skillset and capital missing out through in a competitive process for limited opportunities. Many of these people have been resident in New Zealand for some time and not recent returnees “said Platform 1 Director Mike Warmington.

The last 18 months have caused a backlog of business owners not exiting their quality established businesses as planned. Some felt in 2020 that they should build back up their businesses or that the time was not right for incoming buyers. Few would have expected that the pandemic would still cause lockdowns late in 2021 and are worn down from it. “Platform 1 expects an acceleration of business owners looking to exit over the next 12 months which could put pressure on the available pool of people. The last quarter of 2021 will be a great time for owners that have been delaying their exit to start the process and access the available people.” said Platform 1 Director Mike Warmington.

About Platform 1

Platform 1 are the market leaders in Business Owner Transition and works with private business owners requiring succession. They specialise in finding people with capability and capital who gradually transition into a business, buying the owner out over time. This can be a partial or full buyout.They work with businesses within the $2M to $20M turnover region across New Zealand.

© Scoop Media

Business Headlines | Sci-Tech Headlines


Serious Fraud Office: Commences Enquiries Into Allegations Of COVID-19 Wage Subsidy Fraud
The Serious Fraud Office has commenced a number of enquiries into alleged abuse of the Government’s COVID-19 Wage Subsidy. Director Julie Read said the allegations relate to multiple complex cases of potential fraud that have been referred to the agency following extensive investigations ... More>>

Environment: Preliminary Environmental Data On New Zealand’s Air Quality Released Today

The Ministry for the Environment and Stats NZ have published the Our air 2021: preliminary data release today. We are currently working to revise the Our air 2021 report to incorporate analysis of the World Health Organization (WHO) 2021 air quality guidelines that were released on 23 September 2021... More>>

Statistics: Food Prices Rise For Sixth Consecutive Month
Food prices rose 0.5 percent in September 2021 compared with August 2021, mainly influenced by higher prices for grocery food and meat, poultry, and fish, Stats NZ said today. September’s movement is the sixth consecutive monthly rise. After adjusting for seasonality, prices rose 0.9 percent... More>>

Reserve Bank: Robust Balance Sheets Yield Faster Economic Recovery

Stronger balance sheets for households, businesses, financial institutions and the government going into the pandemic contributed towards maintaining a sound financial system and yielding a faster economic recovery than following previous deep recessions... More>>

Transpower: Releases Independent Report Into Events Of August 9
Transpower’s Chief Executive Alison Andrew has today released an independent report into the grid emergency of August 9 when insufficient generation was available to meet demand, leading to some customers being disconnected... More>>

Bayleys: Latest Lockdown Adds Further Fuel To Industrial Property Market

The recent construction shutdown resulting from Auckland’s Covid 19’s lockdown restrictions has put additional pressure on an industrial property market that is already struggling to keep pace with demand... More>>