While Indian businesses do not see a change in ownership in the next decade, they are open to trade sales, private equity investors.
NEW DELHI: Compared to global business, India Inc is least prone to see ownerships changing hands, with only one in 10 business owners are expected to sell over the next decade, while globally one-third of private businesses may change hands, says a latest study.
"Indian business attitudes have remained static over the last two years and are least likely to change hands, with only one in 10 owners expecting to sell in the next decade," leading global accounting and consulting firm Grant Thornton said in its latest release.
In India 10 per cent entrepreneurs expect an ownership change whereas in Mainland China the percentage of business owners willing to change hands is as high as 34 per cent, while the global average is 28 per cent, the Grant Thornton International Business Report 2007 has said.
While Indian businesses do not see a change in ownership in the next decade, they are open to trade sales, private equity investors, initial public offering and merger route.
Out of the 10 per cent business owners, who are expecting an ownership change, 28 per cent are open to trade sale and get into private equity. Around 18 per cent are open to mergers and acquisitions, joint ventures and want to sell or pass on reins to family members.
About 16 per cent expect management buyouts or buy-ins and eight per cent are open to passing on stakes to employees as stock options.
As per the Grant Thornton's International Business Report (IBR), 28 per cent of privately-held business around the world is expected to change hands within the next ten years.
"Our findings show an overwhelming expectation of change in the structure of privately-held business in the coming years," Grant Thornton India National Managing Partner Vishesh Chandiok said.
Change in ownership impacts the strategy and operations of a business, which eventually affects the long-standing practices and employment patterns.
The survey was conducted on 7,200 business owners in 32 countries across the world.
Those businesses, which are expected to change hands in the future, 25 per cent would do so within the next two years.
Globally, the greatest opportunity for involvement in a business exit is in Germany with 39 per cent respondents expecting a change with 48 per cent expecting it to happen in the next five years.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}