National advisory firm Scancorp newly released Outlook for Australian SME Divestment, Mergers and Acquisitions in 2015 report suggests significantly increased M&A activity in the Australian SME sector for 2015.
Building on trends from 2014, Scancorp suggests the main drivers for this growth will be the retiring baby boomer generation, strategic acquisition for growth, increased demand from overseas and consolidation for survival in key sectors.
It is estimated that around 80 per cent of Australian SMEs are owned by baby boomers, now aged 55 to 72 years old and some 1.4million business owners will likely retire, and sell their businesses, in the coming decade. Scancorp, which helps SMEs to optimise the sale outcome of their business, predicts this unprecedented occurrence will lead to considerable competition for those SMEs looking to attract a buyer in the coming years.
In late 2014, a record 40,000 Aussie SMEs were for sale. The increase in availability of procurable SMEs will drive down the value of many businesses, creating the opportunity for growth through strategic acquisition by ambitious Australian business owners.
Scancorp suggests increased demand for SME assets from international buyers, encouraged by the fall of the Australian dollar as well as the maturation of the Significant Investor Visa.
The Outlook for Australian SME Divestment, Mergers and Acquisitions in 2015 also report outlines the key strategies for SME owners to attain a fair valuation of their business, and find the best channels to access genuine buyers.
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