Small lists the reasons why 2019 will be an excellent year to take a business to market.
"There is a real possibility of a capital gains tax being introduced by the government, so that should factor into planning for anyone who is considering selling.
"But low interest rates are still chief among market dynamics creating a favourable climate for business sales. Interest rates are at historical lows, so potential buyers of businesses can borrow capital on the most favourable terms that many of us can recall.
"Obviously, this also allows a bigger price to be paid for businesses.
Small says he believes that in the next decade New Zealanders will "move away from an obsession with property investing and we'll see direct business purchases being viewed as the optimal investment given the superior returns profile of the sector.
"This will take many forms — from owning and operating the business to forming syndicates to invest in private equity, to manage the business on behalf of the investors."
Beyond the financial considerations, Small anticipates that social pressures will continue to favour the sale of businesses.
"We see an increasing demand for businesses based in the regions, with many former company employees forsaking 'the corporate rat-race' for a fresh challenge.
"Many people yearn to escape the big city, with its long commutes and high living-costs, in order to settle in the regions via a business purchase," says Small.
"Feedback we receive is that shedding the shackles of a corporate job in order to work for yourself is immensely satisfying."
ABC Business Sales was established over 30 years ago and now has offices across the country.
As new managing director, Small says it's a privilege to take over from the founder, Steve Smith, who has moved into the role of CEO of the company.
"For me banking has been an excellent preparation for this role. I've met New Zealand business owners, worked with them closely and learned all about the issues and challenges they face.
"Owners would often tell me that nothing can be more rewarding than seeing their businessesflourish and become financially successful."
But the most successful business owners always know when specialised expertise is required,Small adds.
"In my view, the contribution that skilled brokers make is indispensable in facilitating the successful sale of a business.
"After all, a broker's key priority is to maximise value for the business owner."
He says the role of business sales broker requires accurate market data on comparable sales.
Brokers must also be experts in marshalling sellers, buyers, accountants, lawyers, landlords — and other stakeholders — to ensure the right price is achieved and the transition to the new owners runs smoothly.
Small says he relishes the opportunity to become involved in the sector "at such an exciting time in the development of this economy".
He says he has advised many Kiwi companies and is accustomed to negotiating complex financial and banking solutions.
"I've long wanted to become more involved with business owners and become a trusted advisor for these entrepreneurial people; so, my role at ABC is perfect to achieve that goal."
