India Inc. shy of selling out

Indian entrepreneurs just won't let go. The recently released Grant Thornton International Business Report (IBR) shows that 28 per cent of businesses around the world are expected to change hands within the next 10 years. But Indian business attitudes buck this trend-just one out of 10 promoters are expecting to sell out over the next decade. The annual survey found that business churn will be the highest in South Africa (52 per cent) followed by New Zealand (51 per cent), Canada (50 per cent) and The Philippines (48 per cent).

The survey of 7,200 business owners in 32 countries also found that of those businesses expecting to change hands, 25 per cent will do so within the next two years.

Indian business attitudes

Indian promoters are still coy about selling their "family silver". 
 

• 10% of Indian promoters will sell their businesses over the next decade
  
  
• 28% are open to a partial sale of their stakes in their companies
  
  
• 28% are willing to get in private equity
  
  
• 14% have IPO plans over the next couple of years
  
  
• 16% expect management buyouts
  
  
• 8% open to rewarding employees with stock options
  
  
• 18% open to M&As/joint ventures
  

Worldwide, 25 per cent of promoters expecting to cash out of their businesses will do so through a trade sale-which is the disposal of a company's shares or assets in whole or in part; 20 per cent expect to sell out to private equity players or other financers; 16 per cent each expect to exit their companies either via managements buyouts or mergers. Only 15 per cent expect to sell their businesses to another member of their families.