Part-selling proving to be popular choice
Advisory firm William Buck have noticed a 50 per cent increase in the last two years of business owners who are seeking advice regarding selling their business opting for the part-sell option.
Figures from Capital IQ's global database showing transactions in the last seven years to 2014, show the number of Australian business sales transactions below a value of $20 million (enterprise value) that were less than 100 per cent, had a 13 per cent increase.
Part-selling gaining significant traction is attributed to tough market conditions in Australia, according to William Buck director Mark Calvetti,
"The current challenging market conditions in Australia provide the perfect environment for part selling businesses. Indicators of such conditions include the falling Australian dollar, interest rates at record lows, the overheated property cycle according to some economists, the softer retail market and an unemployment rate around six per cent."
Calvetti also suggested Australians facing a longer time in the workforce as a factor for part selling's increasing popularity
"People are now living longer and are increasingly choosing to work longer. Not surprisingly, some business owners are electing to part sell to allow them more time for leisure activities, while still retaining their active involvement with the business. This arrangement also helps keep their minds active too."
AUTHOR
Priya Prakash
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