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Tabak Business Sales Market Update – November 2017

New Government – New Opportunities

 Change can be a funny old thing.  We see it all too often when we sell businesses.  Most often from staff where they are unsure of who the new owners may be and how they will run the business.  Typically, the thought of change is more daunting than change itself.

Change doesn’t have to be feared. Very often, change creates a host of new opportunities.  The sooner change is embraced, the sooner people's eyes are opened to its prospects.


I view a change of Government in a very similar way.  There will be those who are going to be excited, those who are sitting on the fence and those who are a bit reticent. 


Given the early policy announcements – I suspect that there will be a fairly large block of people that will have a renewed confidence.  In particular low wage earners, young families and the regions.  And, there is also talk of tax relief for SMEs. 


Confidence leads to action and action quite often leads to spending.  This is where the opportunity lies for business.


We know that there is a promise to build 100,000 new homes over the next 10 years.  We know that there is a three billion dollar regional development plan. We know that billions of dollars will be spent on infrastructure around Auckland and to facilitate regional access and growth.  Just imagine the number of businesses required to facilitate this.  The scale is massive.


I accept that this may also cause some pressures in regards to inflation and higher interest rates.  I also accept that there may be a few bottlenecks in the pipeline.  But, we’ve had these pressures in the past and we dealt with them.  We can do the same this time around.


Whether or not these objectives are reached is somewhat academic.  I believe that what is important is that there will be a concerted effort to do so.  That will lead to investment, employment and spending.  That will result in increased confidence and perhaps increased consumption from different socio economic groups. 


What will the future hold?


Don’t we all wish we had access to a crystal ball?  My opinion is that the future is looking good.  Yes, there will be ups and downs.  And, yes, we may have hysteria about property prices, interest rates, the dollar, etc.  But – on average things are looking pretty positive.


We’ve got a great selection of quality businesses in this issue.  Many of these may even benefit from a changing political landscape!


As always, we look forward to hearing from you.

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