A survey of some of Australia’s major private companies has shown high confidence for growth in the year ahead, particularly in WA.
Undertaken by Ernst and Young, the survey of more than 150 companies found that 97 per cent of respondents were moderately or highly confident the Australian economy would perform well in 2005.
This confidence in the economy is also reflected in revenue forecasts with 94 per cent of respondents expecting turnover to increase in 2005 and nearly a quarter of companies anticipating growth to be fuelled by the acquisition of other companies.
Ernst and Young Perth partner Michael Anghie said the firm had seen a lift in activity in the Perth market with clients prepared to be more aggressive in their search for growth through acquisitions.
“There is significant competition for quality acquisitions with trade buyers seeing increasing competition from private equity and, in some cases, the IPO market,” he said.
“It is likely Australian companies will continue to favour local acquisitions due to the strength of the domestic economy and the complexities of an overseas transaction.
“However, the activity and competitiveness in the local market is pushing up vendor’s pricing expectations which will eventually lead to local companies looking for better value offshore.”
