The Indian entrepreneur is not ready to relinquish his business, at least not now, when robust economic growth has fuelled his ambition to go global. The Grant Thornton’s International Business Report reveals that Indian businesses are least likely to change hands, with only one in ten owners expecting to sell in the next decade.
However, Indian businesses are open to trade sale, private equity players, primary markets, joint ventures, management buy outs and buy ins.
In contrast, over 50% private businesses in Canada are expected to change hands within three to five years. The figure is 48% for The Philippines, 33% for UK and a whopping 52% for South Africa.
“A change of ownership can have a major impact on the strategy and operations of a business, affecting long-standing practices and employment patterns. Business owners need to start planning carefully for the future and seek professional advice to consider their options,” said Vishesh Chandiok, National managing partner, Grant Thornton India.
A study of 7,200 owners in 32 countries shows that of those businesses expecting to change hands, 25% will do so within the next two years.
The greatest opportunity for involvement in a business exit is in Germany, with 39% anticipating a change in ownership within the next two years.