Private companies to sell amid improved sentiment
The majority of Australia’s mid-market private companies are considering a change in business ownership in the next decade amid expected growth, according to the Mood of the Market survey released by KPMG.
The biannual survey found almost 60 per cent of respondents expected a change in business ownership, compared to 11 per cent in April.
KPMG’s head of private enterprise Marco Di Sebastiano said this “big change in sentiment” could likely be attributed to business confidence allowing the baby boomers to revisit their retirement plans that they may have put on hold during the global financial crisis.
“However, with this change in sentiment, business owners need to ensure that they are well prepared in order to maximise potential exit opportunities and outcomes,” added Di Sebastiano.
According to the survey, 65 per cent of respondents expect stronger growth than in the previous year, with further 60 per cent indicating their key priority in the next six months will be business growth.
However, despite the expected growth, respondents demonstrated cautious optimism because of the expected interest rate rises and the rise of the Australian dollar.
Mood of the Market survey respondents comprised chief executives and managing directors of Australia’s mid-market private and listed companies, with a turnover between $10 million and $50 million.
AUTHOR
Milana Pokrajac
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