More than a third of privately held businesses in New Zealand expect to grow by acquisition during the next three years, well up on the global average.
A global survey of more than 7000 privately-held businesses by accounting firm Grant Thornton found 37 per cent were looking to grow by acquisition, compared with the global average of 26 per cent.
Last year the figure was 35 per cent, which then was close to the global average.
Martin Gray, head of lead advisory for Grant Thornton New Zealand, said that the change in percentages compared with the rest of the world was indicative of how hard some economies have been hit in the past 18 months.
The key reasons for New Zealand firms to grow through acquisition were to gain access to new geographic markets (53 firms), build scale (47), acquire new technology or established brands (31) and gain access to lower cost operations (23).
Last year family members were the most anticipated purchaser globally, but as the world started to come out of recession trade buyers and financial investors were once again to the fore.
In the latest survey, trade buyers were seen as the most likely single group to buy a business, accounting for 27 per cent of anticipated purchasers in the event of a change of ownership.
NZPA
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