1 00:00:00,080 --> 00:00:03,199 Speaker 1: The business of sales of business seems to be booming. 2 00:00:03,279 --> 00:00:05,760 Speaker 1: Our buy our inquiries are up thirty percent, listings down 3 00:00:05,800 --> 00:00:07,920 Speaker 1: ten percent. So you've got to demand out stripping supply 4 00:00:07,960 --> 00:00:10,119 Speaker 1: issue there, I guess Chris Small is the CEO of 5 00:00:10,160 --> 00:00:12,760 Speaker 1: ABC Business Sales and as well as Chris morning for you, 6 00:00:14,000 --> 00:00:15,840 Speaker 1: Mike Hey doing very well. Indeed, this has been happening 7 00:00:15,840 --> 00:00:17,479 Speaker 1: for a while. We've had you on several times, so 8 00:00:17,600 --> 00:00:20,160 Speaker 1: this is a thing, this is a trend. Is that fair? 9 00:00:20,880 --> 00:00:23,720 Speaker 2: Yeah? Absolutely, we just we just had a record month 10 00:00:23,800 --> 00:00:26,439 Speaker 2: in May. We've had forty two business sales in May, 11 00:00:26,880 --> 00:00:30,320 Speaker 2: which is the most we've ever had. So it's as 12 00:00:30,320 --> 00:00:33,080 Speaker 2: you rightly point out in your first sort of statement there, 13 00:00:33,360 --> 00:00:35,800 Speaker 2: demand is sort of well, I almost call it out 14 00:00:35,800 --> 00:00:38,640 Speaker 2: of control. It's the highest we've ever seen in business 15 00:00:38,680 --> 00:00:39,879 Speaker 2: sales history. Currently. 16 00:00:39,960 --> 00:00:41,720 Speaker 1: Who are these people and what do they want? 17 00:00:43,159 --> 00:00:46,839 Speaker 2: Yep, great question. So pretty much led by the migrants, 18 00:00:46,880 --> 00:00:49,760 Speaker 2: so there's a huge ethnic element to this or a 19 00:00:49,800 --> 00:00:53,640 Speaker 2: lot of Indian, Chinese and Filipinos are coming to New 20 00:00:53,720 --> 00:00:56,960 Speaker 2: Zealand and wanting to buy businesses. And then if we 21 00:00:57,000 --> 00:01:00,000 Speaker 2: do it, we've got do a sector analysis. You'll see 22 00:01:00,000 --> 00:01:04,640 Speaker 2: the hospitality services and construction are probably the three leading 23 00:01:04,720 --> 00:01:06,680 Speaker 2: sectors that they're looking to buy them. They would make 24 00:01:06,760 --> 00:01:08,880 Speaker 2: up over fifty pent as well as retails. You got 25 00:01:09,120 --> 00:01:13,880 Speaker 2: hospitality thirty percent, retail eighteen percent, services fifteen percent, so 26 00:01:13,920 --> 00:01:16,680 Speaker 2: that's over fifty percent from those three sectors. 27 00:01:16,920 --> 00:01:19,320 Speaker 1: So explain to me then, because the number of people 28 00:01:19,319 --> 00:01:21,440 Speaker 1: coming to the country is starting to tail off, would 29 00:01:21,440 --> 00:01:23,480 Speaker 1: you then expect the number of people looking to purchase 30 00:01:23,480 --> 00:01:26,480 Speaker 1: businesses starting to tail off? Then if it's all immigration. 31 00:01:27,120 --> 00:01:30,560 Speaker 2: Good good question. What we're seeing is that people are 32 00:01:30,560 --> 00:01:32,320 Speaker 2: still arriving in New Zealand. From what we can see, 33 00:01:32,360 --> 00:01:36,040 Speaker 2: those people arriving in New Zealand are largely Asian migrants, 34 00:01:36,080 --> 00:01:37,959 Speaker 2: and the people that are leaving New Zealand are probably 35 00:01:38,480 --> 00:01:43,520 Speaker 2: largely European parkiha going to Europe for their own way. 36 00:01:43,560 --> 00:01:45,520 Speaker 2: So you sort of the people arriving and still wanting 37 00:01:45,520 --> 00:01:47,520 Speaker 2: to buy businesses and the people leaving are probably people 38 00:01:47,520 --> 00:01:50,080 Speaker 2: who would never buy businesses in the first place. So 39 00:01:50,560 --> 00:01:54,480 Speaker 2: just the shape of the population is trending towards I 40 00:01:54,520 --> 00:01:56,960 Speaker 2: guess a certain element to Wild's best business ownership with 41 00:01:57,080 --> 00:01:59,040 Speaker 2: it besus the young ones leaving would never buy a 42 00:01:59,080 --> 00:02:01,480 Speaker 2: business because they don't have the money currently. 43 00:02:01,240 --> 00:02:03,280 Speaker 1: No, exactly. So the interesting thing for me is this 44 00:02:03,360 --> 00:02:06,680 Speaker 1: unemployment side of the equation. So immigration is a cultural thing. 45 00:02:06,720 --> 00:02:08,240 Speaker 1: They don't want to work for somebody else, they want 46 00:02:08,240 --> 00:02:11,160 Speaker 1: to work for themselves. Fully get that as an unemployed 47 00:02:11,240 --> 00:02:13,520 Speaker 1: person though. If I'm looking then all of a sudden 48 00:02:13,560 --> 00:02:15,240 Speaker 1: at a business, do I know what I'm doing? 49 00:02:16,840 --> 00:02:19,240 Speaker 2: Yeah, they're pretty good. I mean, anyone's obviously got obviously 50 00:02:19,240 --> 00:02:22,520 Speaker 2: we provide advice. People have got their own accounts and lawyers. 51 00:02:23,280 --> 00:02:25,919 Speaker 2: But it's becoming a real thing now with people are 52 00:02:25,919 --> 00:02:28,519 Speaker 2: coming to us and going you know what, I'm sick 53 00:02:28,560 --> 00:02:30,720 Speaker 2: of working for a big corporate. It's too woke or 54 00:02:30,720 --> 00:02:32,720 Speaker 2: it's too annoying. I don't like my boss, and I 55 00:02:32,800 --> 00:02:35,760 Speaker 2: want that financial freedom with Actually, if they work really hard, 56 00:02:36,320 --> 00:02:38,720 Speaker 2: you get rewarded. If you don't work hard, you're obviously 57 00:02:38,760 --> 00:02:41,320 Speaker 2: can be a lot of trouble. Versus in corporate New Zealand, 58 00:02:41,360 --> 00:02:43,960 Speaker 2: you can probably work pretty hard and not necessarily get 59 00:02:44,120 --> 00:02:45,840 Speaker 2: rewarded for the hours you put in. 60 00:02:46,160 --> 00:02:48,839 Speaker 1: If you've got a good business a going concern, see 61 00:02:48,840 --> 00:02:50,760 Speaker 1: I mean, how many of your stock are kind of 62 00:02:51,200 --> 00:02:53,960 Speaker 1: it could go well if you did it better. Versus 63 00:02:54,000 --> 00:02:56,600 Speaker 1: it's not a great business anyway versus this thing's booming 64 00:02:56,600 --> 00:02:57,760 Speaker 1: and it'll sell them three minutes. 65 00:03:00,400 --> 00:03:03,720 Speaker 2: Majority of what we sell is all profitable because no 66 00:03:03,760 --> 00:03:06,239 Speaker 2: one buys a businesses that's making a loss. So we 67 00:03:06,240 --> 00:03:08,160 Speaker 2: always say that to people when they come and see us, 68 00:03:08,760 --> 00:03:11,200 Speaker 2: that you know, there's no point taking us to market 69 00:03:11,200 --> 00:03:13,200 Speaker 2: because no one's going to want to buy it. There 70 00:03:13,240 --> 00:03:15,160 Speaker 2: are exceptions to the rule, but to the majority of 71 00:03:15,200 --> 00:03:17,120 Speaker 2: what we sell are full going concerns, which which are 72 00:03:17,160 --> 00:03:19,919 Speaker 2: which are highly profitable, and that's why they're selling. Otherwise 73 00:03:20,200 --> 00:03:21,639 Speaker 2: there's no point taking it to market. 74 00:03:21,800 --> 00:03:23,600 Speaker 1: Are the banks on board with this stuff? Is there 75 00:03:23,639 --> 00:03:25,040 Speaker 1: money for this kind of activity? 76 00:03:25,080 --> 00:03:27,679 Speaker 2: If you want to absolutely yeah, we'll look at the 77 00:03:27,720 --> 00:03:29,560 Speaker 2: bank's are funny things that they love. We all know 78 00:03:29,600 --> 00:03:32,960 Speaker 2: they love making money, and given the recent decline and 79 00:03:33,000 --> 00:03:36,720 Speaker 2: property transactions, they've really moved towards what we call SNAE 80 00:03:36,760 --> 00:03:40,440 Speaker 2: business and have been very, very happy to accommodate transactions, 81 00:03:40,480 --> 00:03:42,040 Speaker 2: you know, but they're they're sensible. They're not going to 82 00:03:42,080 --> 00:03:45,320 Speaker 2: lend to bad, bad transactions. But if it's a sensible transaction, 83 00:03:45,360 --> 00:03:47,440 Speaker 2: the bank's absolutely absolutely there for it. 84 00:03:47,560 --> 00:03:50,000 Speaker 1: Do you do a sauna and cold plunge every day? 85 00:03:51,480 --> 00:03:53,440 Speaker 2: Yes? I do. Who told you that I know? 86 00:03:53,520 --> 00:03:55,720 Speaker 1: I know everything? Chris and and and you would, you 87 00:03:55,720 --> 00:03:58,160 Speaker 1: would speak well of it and you're a better person 88 00:03:58,200 --> 00:03:59,080 Speaker 1: for the experience. 89 00:03:59,720 --> 00:04:01,560 Speaker 2: Ah, I could not speak more Heil. I've been doing 90 00:04:01,560 --> 00:04:04,360 Speaker 2: it for five years and it is probably the best 91 00:04:04,360 --> 00:04:06,680 Speaker 2: thing I do in my twenty four hours each day. YEA, 92 00:04:06,680 --> 00:04:08,440 Speaker 2: couldn't recommend it more. 93 00:04:08,520 --> 00:04:10,120 Speaker 1: Good on you mate, Well go well, we'll see you, 94 00:04:10,200 --> 00:04:13,800 Speaker 1: saying Chris Mall, who's the ABC Business sales CEO. Cold 95 00:04:13,840 --> 00:04:16,359 Speaker 1: plunge and a sauna each and every day. You can't 96 00:04:16,360 --> 00:04:19,760 Speaker 1: go wrong. For more from the mic Asking Breakfast, listen 97 00:04:19,839 --> 00:04:22,760 Speaker 1: live to news talks it'd be from six am weekdays, 98 00:04:23,000 --> 00:04:25,040 Speaker 1: or follow the podcast on iHeartRadio.