More business owners to sell in short term

An increasing number of business owners are planning to sell within two years, as perceptions change over the market value of their businesses, survey results released by ASB show.

The Q1 2010 ASB Succession Planning Monitor reveals although the "good time to sell" index remains fairly static - with most business owners surveyed believing now is not a good time to sell - respondents are changing their perceptions about what drives the value of their business.

ASB's chief executive, relationship banking, Stewart McRobie says the impact of the economic recovery could well be influencing the results.

"For the past year we have seen business owners battening down the hatches and putting off selling their businesses for the foreseeable future, or at least for the next five years" he says.

"This quarter, however, we have seen a six percent increase in the number of business owners saying they are considering selling their business in the short term. Almost 20 per cent now say they may sell within two years, as opposed to 14 percent last quarter," McRobie added.

The results marked a significant shift in sentiment, he said.

"The next six months will be crucial in determining whether the tide really has turned in this respect," McRobie said.

- NZ HERALD