 |
 |
|
 |
 |
 |
|
 |
||
Employment law MARKET REPORT:Interesting times! Changing times! While business sales continue to run at record levels the sales mix is constantly changing. We are selling far fewer manufacturing businesses as their numbers diminish through production moving offshore. Compensating this is the huge proliferation of service industries – many with excellent cashflow and profits but low tangible asset content. Many retailers in strip-shop locations are suffering from the new mega retail developments and other businesses are impacted by technology advances and changing demographics. However, the one thing we are certain about is that we are desperately short of listings. If you know anyone thinking of selling we would love to talk to them. Employment law The 2004 amendments to the Employment Relations Act are bad legislation imposed by people with no understanding of the realities of the small business world. Government has created a complex legal situation in trying to solve a problem that was not really there. The Real Estate Institute of NZ has taken advice from leading employment law specialists to produce recommended clauses to include in agreements for sale and purchase of businesses and to protect the parties. Nevertheless, buyers and sellers should not hesitate to seek legal advice if they have concerns about employment issues. One unfortunate reality of the SME market is that many owners do not have employment contracts in place. And many of those who do have not included “employee protection previsions” in those contracts. All professional advisors should check and urge their clients to implement employment contracts that comply with the Act. Why people buy business Fact: 90% of buyers of small and mid-sized businesses are first-time buyers. Fact: their major ownership motivations are likely to be non-investment factors as much as making profits. Employment – a large percentage are buying a job – for themselves or family – and this includes larger businesses. Immigrants, redundancies, and returning ex-pats fuel this market. Security – buyers look for assurance that the business will continue to perform well Vendor assistance, non-compete clauses, systems and manuals will all give comfort. Also, this is why franchises sell for a premium. Lifestyle – most of us are lazy! Buyers prefer short-hour businesses, no week-end or night work. And others look for a business associated with their interests – sport, books, music, food – or a country lifestyle. Independence – refugees from the corporate world enjoy “being the boss”, making the decisions facing the challenges, and receiving rewards in direct proportion to their success. To sell your business for the best price find the buyers’ “hot button”. |
||
home | businesses | top 25 | selling | valuations | articles | our people | links Copyright © Clyth MacLeod Ltd 2002-2010 |
Printed from Clyth MacLeod Website www.clythbiz.co.nz
on
Tel: +(64) 9 630 9491
Fax: +(64) 9 631 5091
Email: info@clythbiz.co.nz