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Speaker 1: Now we've apparently never had more overseas interest in buying

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Speaker 1: New Zealand businesses. A survey of foreign investors by Simpson

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Speaker 1: Grierson has found that forty nine percent of them are

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Speaker 1: considering investing in New Zealand next year. That's up from

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Speaker 1: forty percent last year. Not much of a surprise considering

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Speaker 1: we've seen about fifty takeover deals in the last year,

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Speaker 1: including our Vida Sparks, data Center, business and event Finder.

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Speaker 1: Matt Goodson is Sault Funds Managements Managing Directory. He is

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Speaker 1: with us. Hey, Matt, evening, why are our businesses so

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Speaker 1: popular overseas?

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Speaker 2: I think it's probably not too different to normal. Now

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Speaker 2: we've seen a lot of takeovers on the insie X,

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Speaker 2: but some of them them have been local and as

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Speaker 2: you say, some of them have gone to offshore.

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Speaker 1: And so it does seem like it's slightly high at

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Speaker 1: the moment, does it not. I mean, apparently we have

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Speaker 1: we have had extra interest at the moment.

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Speaker 2: Yeah. Now we've certainly lost quite a few companies, especially

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Speaker 2: at the small runes. I think the tough economy has

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Speaker 2: weighed on valuations there and it's hard yards if you're

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Speaker 2: not a big company in the says that the passive

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Speaker 2: funds have to buy. So it's possibly made a few

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Speaker 2: of those smaller companies a bit vulnerable. And that's what

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Speaker 2: happens all the time. But the bur real Warriors, there

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Speaker 2: haven't been any new ones list. No. Normally you lose

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Speaker 2: some and then you gain some more. Yeah, but we

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Speaker 2: just haven't been seen the new ones.

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Speaker 1: Why not.

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Speaker 2: State of the economy. I think it's a global thing

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Speaker 2: as well. A lot of private equity companies are holding

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Speaker 2: on to firms that they would have exited by now.

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Speaker 2: And also the fixed costs have been listed just keep

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Speaker 2: creeping up, the compliance costs, the cut carbon disclosure requirements,

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Speaker 2: et cetera, et cetera. And you know, the typical size

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Speaker 2: for a KIEWE firm, being a small economy, is a

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Speaker 2: bit smaller. So those fixed costs can really weigh on

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Speaker 2: people who are considering it.

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Speaker 1: Is this a case of them needing to send David

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Speaker 1: Seymour and his team in to cut some red tape.

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Speaker 2: I wouldn't do any harm a better economy. It would

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Speaker 2: also help. Yeah, And so look, you know, hopefully in

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Speaker 2: the next twelve to eighteen months we will see some

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Speaker 2: new listings. But right now at this minute, there aren't

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Speaker 2: too many that I'm aware of. In the woodwork.

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Speaker 1: Is part of the reason that the international buyers are interested,

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Speaker 1: because our businesses are actually presenting is quite a bargain

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Speaker 1: at the minute.

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Speaker 2: It's some are some aren't. If you look at equity

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Speaker 2: markets all around the world, what you see is the

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Speaker 2: largest companies are really high valuations by and large at

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Speaker 2: the moment, but a lot of smaller companies have been

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Speaker 2: left behind, so S and P and the US all

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Speaker 2: time record, but the average company is trading a perfectly

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Speaker 2: bang on its average evaluation. You've seen that abit here

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Speaker 2: as well, so you know. I think it's just a

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Speaker 2: case of where people can see an opportunity target, whereas

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Speaker 2: some synergies something making a move.

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Speaker 1: Now event find it. When we spoke to them earlier

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Speaker 1: about the sales to ticket Tek, they said, in order

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Speaker 1: to be able to upsize and go global, they would

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Speaker 1: need the likes of Ticketek to take them there. Why

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Speaker 1: can't they do it themselves?

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Speaker 2: Kiwi companies have had a long struggle going global. Many

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Speaker 2: have tried, not many have succeeded. Capital base, you're up

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Speaker 2: against big, deep, deep pocketed competitors often overseas unless what

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Speaker 2: you're doing has a real edge, so never likes of

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Speaker 2: zero have succeeded, although chiefly in Australia and still really

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Speaker 2: struggling in the US, but you know a lot of

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Speaker 2: companies have tried and failed, or you really need a

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Speaker 2: technical edge like Fisher and Pipal Healthcare of course, which

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Speaker 2: is probably our poster child. Matt.

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Speaker 1: It's good to talk to you. Thank you so much,

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Speaker 1: Matt Goodson, Salt Funds Management Managing Director.

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Speaker 2: news talks.

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