Victorian Business Strengthening
New research reveals that businesses in Victoria are taking steps to strengthen their share of the marketplace by looking to do a series of mergers and acquisitions on the horizon.

Data showed that businesses that are most likely to look for takeover opportunities are those having a turnover between $20 million and $49 million such as Australian accounting software providers.

According to the Commonwealth Bank Future Business Index, data reveal that businesses are showing a dramatic turnaround from previous months, setting to take a far more positive approach to the economy in the coming months.

CBA corporate financial services general manager, Symon Brewis-Weston, stated that business indicators were showing an increase across the board, showing a surge in confidence that could have a knock-on effect for future business investment.

Brewis-Weston added that with businesses in the mid-market like those accounting software providers and more broadly across Australia having faced a rocky road in recent times, these uncertainties in the markets both at home and overseas have driven a large number of organizations in putting off their expansion plans and hoarding cash. This has enabled them to secure ad fix their financial situation while waiting for the storm to subside.

Mr. Brewis-Weston further explained that though the economy is still facing some problems, there was still a generally more upbeat atmosphere in business despite the mounting wage, energy and fuel costs and fears about a slowdown in China.

However, there were inconsistencies in the pattern across the board. Manufacturing and retail were struggling while business services like accounting software for business providers and health and education were doing well.

The index discovered that there were businesses that were becoming increasingly concerned about competition from overseas as well as to the effect the European economic crisis will have brought on them.

Still behind other states in their level of optimism was Victoria, Tasmania and Queensland.

The index got its basis on a poll of 437 financial decision-makers in private and public companies with a turnover between $10 million and $100 million.