1
00:00:00,160 --> 00:00:02,560
Speaker 1: New insights into the economy job wise and ownership wise.

2
00:00:02,560 --> 00:00:07,000
Speaker 1: Ownership and sales of small businesses booming, booming up thirty

3
00:00:07,040 --> 00:00:09,760
Speaker 1: seven percent on last year. Basically, we're looking to buy

4
00:00:09,760 --> 00:00:11,319
Speaker 1: ourselves a job. I think that's what it is. That

5
00:00:11,400 --> 00:00:14,360
Speaker 1: data comes from ABC Business Sales Managing Director Chris Small

6
00:00:14,560 --> 00:00:16,120
Speaker 1: is with us. Chris, very good morning to you.

7
00:00:17,320 --> 00:00:18,880
Speaker 2: Okay, Michael, you're doing very well.

8
00:00:18,760 --> 00:00:20,840
Speaker 1: Thank you. How much of this is the immigration story?

9
00:00:20,840 --> 00:00:22,400
Speaker 1: People arrive in the country and go I'm going to

10
00:00:22,440 --> 00:00:24,880
Speaker 1: buy myself something. Yep.

11
00:00:24,920 --> 00:00:27,480
Speaker 2: No, that plays a really big factor. And that's when

12
00:00:27,480 --> 00:00:30,240
Speaker 2: we actually delve down into the data. We found it

13
00:00:30,280 --> 00:00:33,800
Speaker 2: is a really high proportion of Filipinos, Chinese and Indians

14
00:00:34,120 --> 00:00:36,600
Speaker 2: that we're making up a lot of the new purchases.

15
00:00:37,120 --> 00:00:39,240
Speaker 2: And if it's pretty clear that that group of people

16
00:00:39,680 --> 00:00:42,680
Speaker 2: certainly prefer to work for themselves, own a business rather

17
00:00:42,760 --> 00:00:44,880
Speaker 2: than become an employee of the big corporation.

18
00:00:45,360 --> 00:00:48,920
Speaker 1: So as in immigration slows, would you expect business sales

19
00:00:48,960 --> 00:00:49,720
Speaker 1: growth to slow?

20
00:00:51,320 --> 00:00:55,120
Speaker 2: Yep, that certainly could be affected. But I think what

21
00:00:55,360 --> 00:00:57,960
Speaker 2: we've seen is that New Zealanders are leaving, well, a

22
00:00:57,960 --> 00:01:00,240
Speaker 2: certain portion of the Johns are leaving and now been

23
00:01:00,280 --> 00:01:03,640
Speaker 2: replaced by migrants from these countries, and so why that

24
00:01:03,680 --> 00:01:06,680
Speaker 2: continues to happen, will still have a decent demand for

25
00:01:06,760 --> 00:01:10,520
Speaker 2: businesses with that sort of that proportion of the ethnicity

26
00:01:10,520 --> 00:01:11,440
Speaker 2: coming into New Zealand.

27
00:01:11,520 --> 00:01:14,040
Speaker 1: The other side of the economy businesses for sale? Why

28
00:01:14,080 --> 00:01:15,920
Speaker 1: are they for sale? Are they stressed or not?

29
00:01:17,600 --> 00:01:21,119
Speaker 2: No, not at all. We would probably probably five percent

30
00:01:21,160 --> 00:01:23,600
Speaker 2: of our business sales are stressed because the usual story

31
00:01:23,600 --> 00:01:26,000
Speaker 2: we've got a third come from business, but from the

32
00:01:26,000 --> 00:01:30,480
Speaker 2: boomers who are either generally too old to old to

33
00:01:30,520 --> 00:01:34,759
Speaker 2: continue working, so in retirement, age, marital dispute, shareholder disputes,

34
00:01:35,480 --> 00:01:37,720
Speaker 2: you know, all the usual reasons, people leaving New Zealand

35
00:01:38,120 --> 00:01:42,119
Speaker 2: or moving location. So generally the reasons these business sales

36
00:01:42,120 --> 00:01:43,800
Speaker 2: are occurring once you'll read on.

37
00:01:43,760 --> 00:01:45,800
Speaker 1: The economy, because I mean, just this morning, yet again

38
00:01:45,920 --> 00:01:48,880
Speaker 1: the hospow industry are screaming and they're going we cannot

39
00:01:48,960 --> 00:01:52,320
Speaker 1: keep the doors open, people's wallets are closed. Therefore, surely

40
00:01:52,400 --> 00:01:54,920
Speaker 1: some of those businesses would be put up for sale

41
00:01:55,440 --> 00:01:58,000
Speaker 1: as opposed to just close down, wouldn't they? Or is

42
00:01:58,040 --> 00:01:58,760
Speaker 1: that not the case?

43
00:02:00,360 --> 00:02:03,360
Speaker 2: Those in the current market mark if the business isn't

44
00:02:03,360 --> 00:02:06,440
Speaker 2: making money, they're generally not sellable. So we do talk

45
00:02:06,480 --> 00:02:10,040
Speaker 2: to those people and we're really really honest conversations and

46
00:02:10,120 --> 00:02:12,919
Speaker 2: say that until you start making money, there's not going

47
00:02:12,919 --> 00:02:15,119
Speaker 2: to be an interested purchaser out there, which makes sense.

48
00:02:15,120 --> 00:02:16,960
Speaker 2: Someone's going to pay good money for something that's going

49
00:02:17,000 --> 00:02:19,520
Speaker 2: to cause them a loss on day one.

50
00:02:19,800 --> 00:02:22,120
Speaker 1: So are you breaking down categories? What are the categories

51
00:02:22,160 --> 00:02:24,880
Speaker 1: that still make money? Are still going concerns? Are still

52
00:02:24,919 --> 00:02:27,000
Speaker 1: businesses that you would look at and go, actually, I

53
00:02:27,040 --> 00:02:27,840
Speaker 1: can make this happen.

54
00:02:29,120 --> 00:02:31,560
Speaker 2: The hospitality there is still I mean, well they're at

55
00:02:31,560 --> 00:02:33,800
Speaker 2: Hospitality is patchy, there's winners and losers out there. So

56
00:02:33,800 --> 00:02:36,560
Speaker 2: we're still twenty percent of our business self, so that

57
00:02:36,639 --> 00:02:39,320
Speaker 2: calls came from hospitality, So they're businesses that were making money.

58
00:02:39,520 --> 00:02:43,279
Speaker 2: On top of that, you've got childcare, age care, transport, logistics,

59
00:02:43,720 --> 00:02:48,360
Speaker 2: important distribution, healthcare, so all the usual categories. So it

60
00:02:48,400 --> 00:02:51,440
Speaker 2: wasn't it wasn't skewed in one particular way. It's sort

61
00:02:51,440 --> 00:02:53,800
Speaker 2: of the standard distribution we'd see by industry.

62
00:02:53,960 --> 00:02:56,000
Speaker 1: And do you know when somebody comes along to buy

63
00:02:56,000 --> 00:02:57,960
Speaker 1: a business, you know, I say I got laid off

64
00:02:57,960 --> 00:02:59,480
Speaker 1: today and I thought, I know, I'm going to buy

65
00:02:59,480 --> 00:03:01,440
Speaker 1: myself a bit do I have any idea what I'm

66
00:03:01,440 --> 00:03:03,600
Speaker 1: buying do I am I an expert in the field,

67
00:03:03,720 --> 00:03:05,160
Speaker 1: or we wouldn't have a clue.

68
00:03:06,800 --> 00:03:08,680
Speaker 2: Generally is a fair bit of education. He goes on,

69
00:03:08,800 --> 00:03:11,280
Speaker 2: especially for the what we call the corporate refugees, which

70
00:03:11,280 --> 00:03:13,799
Speaker 2: we've seen a lot more of now, which are people who,

71
00:03:14,000 --> 00:03:16,080
Speaker 2: as you refuge to before. There's plenty of people being

72
00:03:16,120 --> 00:03:19,240
Speaker 2: laid off and looking to replicate their income lab business,

73
00:03:19,280 --> 00:03:21,680
Speaker 2: ownship because the job market is so tight, especially at

74
00:03:21,680 --> 00:03:23,520
Speaker 2: the higher end. But it's the only way they can

75
00:03:23,560 --> 00:03:26,119
Speaker 2: actually make an income, so they're essentially buying themselves a job,

76
00:03:26,400 --> 00:03:28,520
Speaker 2: and they need a lot of education. They're coming and

77
00:03:28,520 --> 00:03:30,480
Speaker 2: going I don't really care what I do as long

78
00:03:30,520 --> 00:03:32,360
Speaker 2: as it makes me two hundred grand a year. But

79
00:03:32,400 --> 00:03:34,280
Speaker 2: then we mentioned to them, you know, do you want

80
00:03:34,280 --> 00:03:37,600
Speaker 2: to clean a kitchen or you know, look after young children.

81
00:03:37,680 --> 00:03:40,320
Speaker 2: They'll go no, no, no, So they do need some education.

82
00:03:40,560 --> 00:03:43,080
Speaker 1: Very interesting insight, Chris, go, well, listen, I know you're

83
00:03:43,120 --> 00:03:44,800
Speaker 1: in Vietnam, and I know it's one thirty in the morning,

84
00:03:44,840 --> 00:03:46,480
Speaker 1: so I appreciate you staying up or getting up or

85
00:03:46,520 --> 00:03:47,200
Speaker 1: whatever you've done.

86
00:03:48,320 --> 00:03:49,800
Speaker 2: Too easy. Thanks, Mike ge have a good day. Good

87
00:03:49,800 --> 00:03:50,000
Speaker 2: on you.

88
00:03:50,040 --> 00:03:52,680
Speaker 1: Mate Chris Small, who is the ABC too easy? See?

89
00:03:52,760 --> 00:03:54,880
Speaker 1: I mean, come on for the all blacks who don't

90
00:03:54,920 --> 00:03:56,840
Speaker 1: like to come on the program a day before a test,

91
00:03:57,480 --> 00:03:59,840
Speaker 1: for the all blacks who don't like to come on

92
00:03:59,880 --> 00:04:02,880
Speaker 1: the program a day before the test. How come Chris

93
00:04:02,920 --> 00:04:04,360
Speaker 1: can get up at one point thirty in the morning

94
00:04:04,360 --> 00:04:06,760
Speaker 1: in Vietnam and so too easy? Mike? How come it's

95
00:04:06,760 --> 00:04:08,680
Speaker 1: too easy for Chris, but just a little bit difficult

96
00:04:08,680 --> 00:04:11,040
Speaker 1: for an all black. Not that I'm bothered by it.

97
00:04:11,720 --> 00:04:14,640
Speaker 1: For more from the Mic Asking Breakfast, listen live to

98
00:04:14,720 --> 00:04:17,799
Speaker 1: News Talks at B from six am weekdays, or follow

99
00:04:17,839 --> 00:04:19,400
Speaker 1: the podcast on iHeartRadio.