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Listed companies as buyers

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Listed companies as buyers

By , April 17, 2012

Larger business owners preparing to retire should, if well-prepared, have more success in achieving a sale at a reasonable value. australia equity markets are heavily underpinned by the constant flow of superannuation contributions of the strain workers. while the equity raising requirements of the larger australian businesses get the lion share of these funds as well is australian international business loans, in normal times there is a surplus of investment funding. this surplus translates into higher price-earnings ratios respected listed companies and consequently listed australian businesses will continue to have the opportunity to profitably finance their expansion by acquiring privately owned businesses at lower price earning ratios than they have themselves. it is this practice which will underpin the value of larger privately owned businesses who are well-prepared for an exit. accordingly businesses in the medium and middle market need to actively consider how to increase their appeal as a potential acquisition target as part of their existing strategy although mergers and acquisitions are unusually quiet at the present time this is likely to rebound – Australian listed companies are currently holding a higher ratio of cash to assets and has been the case any time in the last 22 years.
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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.