GE Capital Mid-Market Report 2014 - Succession Plus

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GE Capital Mid-Market Report 2014


GE Capital Mid-Market Report 2014

By , May 8, 2014

This report provides fantastic information on the very important mid-market – a critically important sector for Australian business. It includes businesses with revenues between $10 million – $250 million that together contribute $425bn p.a. to the Australian economy. The sector includes 27,500 businesses of about 1.4 % of total Australian businesses. Whilst a small percentage the sector is responsible for just over 33% of business revenues, 23% of all employees and nearly 1/5 of all borrowings and deposits.

Key findings:

Since September 2013 there has been a notable lift in growth outlook index for all sectors ( including both mid-market and small businesses ) .

The removal of red tape along with clear and consistent policy is crucial to mid-market success ( Aaron Baxter MD, Commercial Finance, GE Capital ).

61% of mid-market businesses are expecting to grow revenue in the next year & 31% plan to increase revenue but with the same employee numbers ( improved efficiency / productivity ).

By industry the results are varied – Retail has moved into a leadership position ( increasing to 0.178 ) , wholesale has reversed its recent positive performance with concerns over Foreign Exchange rates and the Australian dollar doubling since Dec 2012, Manufacturing has continued to feel the pressure while other ( including mining ) has grown steadily during 2013.

Looking ahead:

The issue of employee engagement and management succession is highlighted with just under 80% stating that having a senior management team that leads effectively and 50% saying that having a company culture that nurture and develops talent as absolutely essential for growth – “employees who are more fully engaged with the business can significantly improve customer relations and, of course, the bottom line.

The report highlights trends to watch – Software as a Service, rapid growth of Asian markets, evolving technology, security in the cloud and shorter technology refresh cycles.

Craig West

Craig West

Managing Director | Succession Plus

Craig West is a strategic accountant who has over 20 years’ experience advising business owners. His background as a CPA in public practice, provided invaluable experience in the key issues of concern to business owners. Following 6 years of study to gain two masters degrees, Craig focused on Capital Gains Tax (CGT) for business sales advising on strategic management of tax issues. This experience formed a very strong view that business owners (and often their advisers) were unprepared and unaware of the steps required to prepare a business for exit.

Craig now acts as a strategic mentor for mid-market business owners and has written four critically acclaimed books on employee incentives, succession planning, asset protection and exit strategies. Craig has conducted numerous seminars and keynote presentations throughout Australia & internationally, including adviser education programs for the Institute of Chartered Accountants and CPA Australia.