M&A Market Attractive to Baby Boomers

September 2014

Market conditions are now ripe for baby boomers that are looking to sell their businesses, according to KPMG New Zealand’s latest M&A Predictor.

The latest indicators continue their upward positive trend with a strong rise in predicted earnings, and a healthy corporate appetite for deals.

According to Ian Thursfield, KPMG NZ’s Head of Mergers and Acquisitions, the current opportunities are particularly strong for larger privately owned businesses. This is because higher sale prices are starting to drive divestment activity in this market.

“For years there’s been a lot of talk around the pipeline of Baby Boomers and the expected wave of succession based sales, says Thursfield.

“But the reality is that people have been hanging on to their businesses longer. What we’re now seeing, finally, is that strong activity and prices are drawing some of these people out. Prices are now at comparable levels to 10 years ago, and business owners are becoming more inclined to sell into this market.”

Ian Thursfield says this trend is likely to be welcomed by New Zealand based investors.