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Business sales market update - December 2014

Resounding Election Victory brings Renewed Confidence

In our last update I showed how continuing confidence in the New Zealand economy was encouraging businesses to expand. Then things stalled - largely due to the uncertainty around the elections and indecision around opposition policies.  

But now the elections are over – and the incumbent National Government achieved such resounding victory - we can breathe a sigh of relief that the uncertainty around other parties policies have disappeared.

 

It seems the New Zealand public is learning about how to vote tactically with MMP.  Two electorates stand out in this respect with Epsom - where the tactics have been in from the start of MMP, and with Te Tai Tokarau - where the dislike of the bond between the Mana Party and Kim Dotcom is reflected in the results. Let’s look at the provisional figures.

 

Of the total votes, in Epsom, Act got 45% for the candidate and 3% for the party vote while National got 31% for the candidate and 65% of the party. And in Te Tai Tokerau, Labour got 45% for the candidate and 35% for the party vote while Mana got 39% for the candidate and 18% for the party.

 

Messages: Get Act a seat to help National govern and get Labour in to get rid of Kim Dotcom.

 

All set to Go

 

In an article in the Herald Liam Dann looks at both sides of the future for the New Zealand economy. And in the meantime businesses are paying their bill faster. Now that’s a sure sign things are improving!

 

There’s now a rush to get projects organised before Christmas. Will we now see if the infamous New Zealand shutdown between November and March is finally over?

 

What will the New Year hold?

 

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

 

We believe that the numbers of businesses coming to the market will slowly increase over the following years.  Counter to the perception that this will put a downward pressure on prices – we believe that due to the strengthening of the economy – prices will actually start to firm up.  The reason for this is that many companies had their first really “good” year in 2014.  This will be repeated in 2015, and so on and so fort.  Thus, continued growth and consistent performance means better prices.

 

 

Kind Regards,

 

Alex Smith BBS, BA (Hons)

Partner - Tabak Business Sales

Licensed under REAA 2008

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