Retiring owners are finding it difficult, near impossible to transfer their businesses, even at what previously might have been called “Fire-Sale” prices. Our recent sales and historic data suggests selling price across all SME’s has declined by approximately 30% since Christmas 2016. Parents increasingly cannot hand farms or businesses – whether professional or trade based – over to the kids due to the absence of investment finance.
The era of the small business funding owners’ retirement is swiftly coming to an end – but it’s much worse than that. What is going to happen to the new breed of entrepreneurs when they catch-on that there is no retirement pay-day.
Over the last thirty years, SME’s powered a generation from youth to present day, permitting baby boomers their freedom. Owning a small business provided community employment. It enabled people to buy groceries, buy homes, take holidays, pay school fees, pay sporting fees – in essence – SME income and expenditure drove the nation and the governments’ own tax revenue. Now these family owned small businesses are simply closing up – knowledge and skill is not being sold-on, handed-over or even given away. The wealth and experience held by an entire generation is dissipating like early morning mist on a pond.
All of us are feeling the onset of this tsunami. When the suburban professional, the tradie and the shopkeeper or service supplier reaches age 65 to 70 or becomes unwell and they are forced to simply shut up shop – how many associated jobs will also disappear into this whirlpool.
Yet some politicians continue to act and speak as if their war on business will have a beneficial outcome for the community. That they remain convinced we can forever drive economic growth via high taxes and more spending – rather than facilitating investment in business ownership, simply numbs the mind.
This is a call to all level of Government to take their foot off the throats of SME’s. National wealth is eroded with the closure of every small businesses. There is a real decline in national capital occurring right now with the accelerating numbers of business closures and fire sale handovers. The investment savings held by self-employed entrepreneurs in their SME businesses cannot be freed-up if it cannot be transferred.
If you need more information, please talk to me:
0401 308 385