Our services
Making It Happen
Our firm commitment to providing excellence in all aspects of the business sale process means sustaining confidentiality and communication with the vendor at all stages.
Most businesses sell within three to six months. Larger enterprises may take longer. Once an offer is received, it generally takes around six to eight weeks to complete the sales process.
Most businesses have commercially sensitive information that needs to be guarded against competitors, staff, customers and suppliers.
By acting as an intermediary, New Zealand Business Sales ensures that every enquiry about your business is carefully examined. No information that could identify your business is released to potential purchasers without your approval and until the Confidentiality agreement has been signed.
Business Broker Update
Selling a business – what you need to know
13 reasons to use New Zealand Business Sales to sell your business
1. We are able to manage the successful sale of your business in a discrete and orderly manner, ensuring that confidentiality is maintained and uncertainty avoided.
2. Selling a business can take considerable time and commitment in order to achieve the best possible price. New Zealand Business Sales is able to undertake much of that time consuming work.
3. We are able to prepare a professional and well presented Information Memorandum that will only be made available to qualified buyers that have signed a confidentiality document with us. We regard confidentiality with the utmost importance.
4. Our experience in business broking and attention to detail ensure that your business is presented accurately and liability is minimised.
5. We are experienced in completing tailor made marketing strategies for your business. Well designed marketing strategies can be crucial for a successful sale.
6. We have experience across many business sectors and are often able to present a suitable buyer in a very short period of time.
7. We apply a disciplined approach to the value appraisal of your business that combines both historical and current perspectives.
8. New Zealand Business Sales maintains regular contact with major Accountancy companies and other investment bodies.
9. We are familiar with the ever increasing legal and procedural requirements surrounding the selling of a business.
10. Selling a business can be an emotional exercise. By using New Zealand Business Sales as an intermediary, we are able to assess issues at an arms length.
11. Typically, buyers feel more comfortable with a broker as an intermediary. They are often reluctant to deal directly with a Vendor.
12. New Zealand Business Sales brokers are regulated by legislation. The Real Estate Agents Authority, the Consumer Guarantees Act and the Fair Trading Act. They are also governed by ethical constitutions and our ‘ own strict internal policies.
13. New Zealand Business Sales brokers are familiar with the Sale and Purchase agreement, confidentiality agreements, communicating with Accountants, Solicitors, etc.
7 must do’s when selling your business
1. Set a realistic Price. A business priced at an unreasonable level will not even be considered by serious buyers. Price it too low and you are throwing money away. New Zealand Business Sales can assist you on what other similar businesses are achieving and the current industry norm for your business.
2. You have a greater chance of achieving a good price for your business if it is well presented and looks professional. This includes the offices, warehouse, vehicles, signage, etc.
3. Prepare for sale. There must be up to date figures available for buyers and their Accountants to view. This includes GST returns, forecasts, etc. Lease agreements should be readily available and have a reasonable time to run.
4. Allow time to sell. A business on average takes 6 to 12 weeks to sell. “Having to sell” is not a desirable position to be in.
5. Provide efficient systems to operate with. Have an up to date list of suppliers and customers, work to be carried out, hours of operation, services provided and records to be kept.
6. Honesty is the best policy. Disclose everything that should be disclosed. Do not try to hide anything. The due diligence process will reveal any inconsistencies. Trust must be established at the outset and maintained throughout the entire process.
7. New Zealand Business Sales has the expertise and systems required to successfully sell your business. Experience can make the difference between achieving a premium for your business or not. We can help you avoid the pitfalls and common mistakes and provide advice and guidance along the way. Most importantly we can provide confidentiality , qualify buyers, and attend to all of the detail along the way. All this leaves you with more time to run your business.
Business Broker Update
Selling a business – what you need to know
9 steps to sell your business
Grooming
- Give yourself plenty of time to prepare the business for sale.
- Eliminate unnecessary expenses and maximise revenues.
- Increasing profit by just $5,000 could add another $520,000 to your sale price.
- Make the business presentable in every way.
Value Appraisal
- There are several methods of valuing or appraising a business.
- New Zealand Business Sales uses a combination of these plus industry statistics to establish the real value of your business.
- Every business is different, and it is vital that business owners deal with professionals when establishing the value of their business.
Information Memorandum
- This is a comprehensive blueprint of your business, providing a detailed overview of various components.
- New Zealand Business Sales prepares this document for you, relying on the business owner to provide accurate and timely information.
- This document is bound by legal and regulatory requirements. All information that may negatively impact the business should be disclosed.
Identifying Buyers
- New Zealand Business Sales often sells businesses without any form of advertising.
- Databases of buyers are maintained.
- New Zealand Business Sales work closely within different business sectors and have buyers regularly looking to make a purchase.
- New Zealand Business Sales can discreetly approach companies without divulging information that might identify your business.
Tailored Marketing
- New Zealand Business Sales will develop the optimum marketing campaign for your business.
- New Zealand Business Sales utilise the web, media, and industry contacts to market and successfully sell your business.
- Confidentiality is always paramount when considering your marketing campaign.
Qualifying Genuine Buyers (Separating the Wheat from the Chaff)
- New Zealand Business Sales can maintain confidentiality while qualifying potential buyers.
- This process is time-consuming and presents challenges.
Qualifying Genuine Buyers (Separating the Wheat from the Chaff – Continued)
- Maintaining professionalism and a disciplined approach is crucial to a successful outcome.
- Industry research has shown that for every 10 enquiries about a business for sale generated by a marketing campaign, only one is a genuine buyer. The other nine are simply on ‘fishing trips’ or have non-specific intentions.
- The message is clear: Use your Broker.
Sale and Purchase Agreement
- Before a Sale and Purchase Agreement is entered into, a purchaser will have additional questions that need to be answered, such as lease documents, cash flow forecasts, etc.
- New Zealand Business Sales can coordinate the provision of additional information by liaising with the owner or their accountant/lawyer.
- A Sale and Purchase Agreement is negotiated, with sensitive information retained at this point.
Due Diligence
- Before the sale is finalised, a period of due diligence will take place, allowing the buyer to verify the information provided.
- Commercial information deemed sensitive will also be analysed during this time.
- This process usually takes between two to three weeks, or longer for a more complex business.
Settlement and Handover
- A Sale and Purchase Agreement will be declared unconditional once all terms and conditions have been satisfied.
- All documents will be finalised, a stock take will be carried out, and the sale will be settled.
- A vendor assistance period will need to be agreed upon.
How we can help?
- We provide free Business Value appraisals.
- We design a tailor-made marketing strategy to successfully sell your business.
- We compile a detailed Information Memorandum on the business.
- We deal with all AML, legal, and accounting issues as they arise.
- We construct a Sale and Purchase Agreement between the Purchaser and Business Owner.
- We instigate the signing of high-level Confidentiality Agreements between all parties concerned.