Latest / Best of Business / Chris Small: ABC Business Sales CEO on the rising number of people looking to purchase businesses

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Chris Small: ABC Business Sales CEO on the rising number of people looking to purchase businesses · Best of Business

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  Speaker 1: You're listening to a podcast from news Talk zed B.
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  Speaker 2: The business of sales of business seems to be booming.
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  Speaker 2: Our buyer inquiries are up thirty percent, listings down ten percent.
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  Speaker 2: So you've got to demand out stripping supply issue there,
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  Speaker 2: I guess. Chris Small is the CEO of ABC Business
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  Speaker 2: Sales and as well as Chris, morning to you.
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  Speaker 3: Well, Mike, hey, you don't very well.
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  Speaker 2: Indeed, this has been happening for a while. We've had
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  Speaker 2: you on several times out so this is this is
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  Speaker 2: a thing, This is a trend. Is that fair?
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  Speaker 3: Yeah? Absolutely, we just we just had a record month
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  Speaker 3: in May. We've had forty two business sales in May,
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  Speaker 3: which is the most we've ever had. So it's, as
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  Speaker 3: you right to point out in your first sort of statement,
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  Speaker 3: their demand is sort of well, I almost call it
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  Speaker 3: out of control. It's the highest we've ever seen in
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  Speaker 3: business sales history. Currently.
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  Speaker 2: Who are these people and what do they want?
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  Speaker 3: Yep? Great question. So pretty much led by the migrants.
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  Speaker 3: So is a huge ethnic element to this or a
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  Speaker 3: lot of Indian, Chinese and Philippina are coming to New
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  Speaker 3: Zealand and wanting to buy businesses, and then if we
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  Speaker 3: do it, we've do a sector analysis. You'll see hospitality, services,
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  Speaker 3: and construction are probably the three leading sectors that they're
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  Speaker 3: looking to buy it like, they would make up over
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  Speaker 3: fifty as well as retails. You've got hospitality thirty percent,
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  Speaker 3: retail eighteen percent, services fifteen percent, so that's over fifty
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  Speaker 3: percent from those three sectors.
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  Speaker 2: So explain to me, then, because the number of people
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  Speaker 2: coming to the country is starting to tail off, would
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  Speaker 2: you then expect the number of people looking to purchase
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  Speaker 2: businesses starting to tail off? Then if it's all immigration.
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  Speaker 3: Good good question. What we're seeing is that people are
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  Speaker 3: still arriving in New Zealand. From what we can see,
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  Speaker 3: those people arriving in New Zealand are largely Asian migrants,
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  Speaker 3: and the people that are leaving New Zealand are probably
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  Speaker 3: largely European parkiha going to Europe for their own way.
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  Speaker 3: So you're sort of the people arriving and still wanting
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  Speaker 3: to buy businesses and the people leaving the probably people
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  Speaker 3: who would never buy businesses in the first place. So
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  Speaker 3: just the shape of the popularation is trending towards I
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  Speaker 3: guess a certain element to Wild's best business ownership with
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  Speaker 3: it becasus the young ones leaving would never buy a
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  Speaker 3: business because they don't have the money currently.
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  Speaker 2: No, exactly. So the interesting thing for me is this
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  Speaker 2: unemployment side of the equation. So immigration is a cultural thing.
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  Speaker 2: They don't want to work for somebody else, they want
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  Speaker 2: to work for themselves. Fully get that as an unemployed person. Though,
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  Speaker 2: if I'm looking then all of a sudden at a business,
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  Speaker 2: do I know what I'm doing?
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  Speaker 3: Yeah, they're pretty good. I mean everyone's obviously got obviously
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  Speaker 3: we provide advice. People have got their own accountants and lawyers.
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  Speaker 3: But it's becoming a real thing that where people are
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  Speaker 3: coming to us and going you know what, I'm sick
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  Speaker 3: of working for a big corporate. It's too woke or
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  Speaker 3: it's too annoying. I don't like my boss, and I
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  Speaker 3: want that financial freedom with Actually, if they work really hard,
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  Speaker 3: you get rewarded. If you don't work hard, you' obviously
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  Speaker 3: can be a bet of trouble. Versus in corporate New Zealand,
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  Speaker 3: you can probably work pretty hard and not necessarily get
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  Speaker 3: rewarded for the hours you put in.
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  Speaker 2: If you've got a good business a going concern. See,
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  Speaker 2: I mean, how many of your stock are kind of
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  Speaker 2: it could go oh well if you did it better,
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  Speaker 2: versus it's not a great business anyway, versus this thing's
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  Speaker 2: booming and it'll sell them three minutes.
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  Speaker 3: Look, majority of what we sell is all profitable because
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  Speaker 3: no one buys a businesses that's making a loss. So
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  Speaker 3: we always say that to people where they come and
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  Speaker 3: see us that you know, there's no point taking us
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  Speaker 3: to market because no one's going to want to buy it.
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  Speaker 3: There are exceptions to the rule, but to the majority
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  Speaker 3: of what we sell are full going concerns, which which
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  Speaker 3: are which are highly profitable and that's why they're selling.
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  Speaker 3: Otherwise there's no point taking it to market.
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  Speaker 2: Are the banks on board with the stuff? Is there
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  Speaker 2: money for this kind of activity if you want.
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  Speaker 3: To absolutely, yeah, we'll look at the bank's are funny
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  Speaker 3: things that they love. We all know they love making money,
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  Speaker 3: and given the recent decline and property transactions, they've really
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  Speaker 3: moved towards what we call sne business and have been
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  Speaker 3: very very happy to accommodate transactions. You know, but they're
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  Speaker 3: they're sensible. They're not going to lend to bad bad transactions,
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  Speaker 3: but if it's a sensible transaction, the banks are absolutely
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  Speaker 3: absolutely there for it.
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  Speaker 2: Do you do a sauna and cold plunge every day?
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  Speaker 3: Yes? I do? Who told you that?
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  Speaker 2: I know? I know everything, Chris, and you would speak
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  Speaker 2: well of it and you're a better person for the experience.
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  Speaker 3: Ah, I could not speak more, Heil. I've been doing
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  Speaker 3: it for five years and it is probably the best
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  Speaker 3: thing I do in my twenty four hours each day. Yeah,
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  Speaker 3: couldn't recommend it more.
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  Speaker 2: Good on you mate, Well go well, we'll see you
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  Speaker 2: sayin Chris Small, who's the ABC Business Sales CEO. Cold
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  Speaker 2: plunge and a sauna each and every day, you can't
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  Speaker 2: go wrong.
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