Buying a business in New Zealand typically starts with understanding what you're looking for, your budget, the lifestyle you want, and the industries you're interested in.
From there, it's about finding the right opportunity, doing your homework, and working with the right people to get the deal done.
The general process looks like this: search for listings, sign a confidentiality agreement, chat with the broker who is selling the business you enquired on, review the business information, conduct due diligence, negotiate the terms, and settle.
It sounds like a lot, but with the right broker guiding you through each step, it's much more straightforward than it seems.
At Kakapo, our brokers work with buyers every day and can help you navigate the process from your very first enquiry through to settlement.

The honest answer is it depends, but it's the wrong question to start with.
A better question is how much do you want to earn each year? Once you know your income goal, you can work backwards from there to figure out the type of business, size and price range that makes sense for you.
Businesses in New Zealand sell for a huge range of prices. Kakapo has sold businesses for as little as $1 right through to well into the millions, which shows there's the right opportunity out there for almost every buyer. The key is matching your budget, your income goals and the lifestyle you want with the right business.
Beyond the purchase price itself, it's also worth factoring in working capital, legal fees, accounting and due diligence costs, and any upfront operating expenses. A good broker will help you look at the full picture so you know exactly what you're getting into.

One of the biggest mistakes buyers make is getting fixated on financials or small details and missing the bigger picture. The numbers matter, but so do the systems, the staff, the customer base, the owner's involvement, and whether the business actually fits the life you want to live.
Look for gaps or hidden value. Compare yourself against the current owner and ask honestly what you could do better (or worse). Often the best businesses to buy are ones where the owner has been in the business for a long time, because you bring fresh energy and a new perspective that can unlock real growth.
And most importantly, don't buy a business just for the return. Buy a business you'll genuinely love working in and growing. The best buyers we see are the ones who are excited about the industry, the team, and the opportunity to make it their own. That's where the real results come from, both financially and personally.

We strongly recommend it. Spending potentially hundreds of thousands of dollars without the insurance policy of a good lawyer is one of the biggest mistakes a buyer can make. A lawyer protects your interests, reviews the sale and purchase agreement, checks the lease, contracts and any intellectual property, and flags anything that could come back to bite you down the track.
The key thing most buyers overlook is that not all lawyers are the same. If you're getting your own lawyer, make sure they have commercial experience. It's like asking a heart surgeon to repair your knee. Get a specialist who deals with business sales regularly.
Kakapo can recommend trusted commercial lawyers we've worked with over many successful deals, so if you don't have one already, just ask.

There's no single formula, but a few principles help.
Most businesses sell on a multiple of their profit or EBITDA, typically 1 to 5 times earnings depending on the industry, risk and growth potential. That's your baseline, but the real value also takes into account future earnings potential, not just what the business is making today.
Compare apples with apples. Look at similar businesses in the same sector that have sold recently, and check whether the asking price stacks up. And remember, the right price is ultimately what both parties agree on. Most deals involve some negotiation, so the asking price is almost always a starting point rather than a final number.
If you're unsure, get an accountant for a second opinion and do your own research. Our brokers know the market inside and out, and because every industry in business sales is constantly shifting, they work off up-to-the-minute data to help buyers and sellers find the right number.

Yes, and it might surprise you how often this works out brilliantly.
It really depends on the industry, but some of the best buyers we've seen come in with zero direct experience and succeed because they bring fresh thinking and a customer-focused perspective that long-time operators sometimes lose.
What matters more than industry experience is your work ethic, your willingness to learn, and the quality of what you're buying. A business with good systems, strong staff and solid customer relationships can be stepped into by the right person, even if they've never worked in the sector before.
Having great advisors around you is just as important. A good accountant, lawyer, mentor and broker can help fill any gaps in your experience and set you up for success from day one.

Due diligence is your insurance policy.
It's your opportunity to pop the hood on the business and see what's underneath, how it all works, and whether everything matches what you've been told. It's also your chance to ask questions, request information, and get a comprehensive understanding before you commit.
Due diligence covers the financial and the non-financial. That includes reviewing the profit and loss statements, tax returns, contracts, leases, staff arrangements, customer and supplier relationships, and any legal or compliance matters. Rushing or skipping this step is where most buyers get burned.
At Kakapo, we back full transparency. We help make sure sellers have the right information ready for buyers, and our brokers guide you through what to ask for and what to look at. We always recommend using specialists like your accountant and commercial lawyer to lead the financial and legal side of the process. They're the experts and they'll spot things you might miss.

There are three main ways buyers fund a business purchase in New Zealand.
The most common is cash from personal savings, often combined with equity from the family home. Second is a bank loan or business loan, where banks lend against the strength of the business as much as the buyer. And third is vendor finance, where the seller agrees to leave some of the purchase price in the business to be paid over time. Vendor finance is rare but can sometimes happen depending on the deal.
The biggest mistake buyers make is leaving the finance conversation too late. Start it early, get a clear sense of what you can borrow, and have a realistic understanding of how banks will view the business you're looking at. Strong, profitable businesses with good records are far easier to finance than weak ones.
We work with excellent mortgage brokers who specialise in business lending, and they're no obligation. If you'd like their details, just reach out and we'll make the introduction.

Like any investment, buying a business comes with risk.
The main ones to be aware of are owner reliance (the business dropping off when the seller leaves), loss of key staff or customers during the transition, financial risk if the numbers aren't what they appear to be, and external factors like industry shifts, regulation or market changes.
This is why we hear so many horror stories from private sales. Buying a business without professional guidance is where things go wrong. Using a reputable business broker and the right advisors to guide you through the process is the single biggest thing you can do to reduce your risk.
The good news is that buying an existing business is generally far less risky than starting one from scratch. You're stepping into something that already has revenue, staff, systems and customers. No deal is completely risk free, but with proper due diligence, the right deal structure including warranties, indemnities and handover periods, and a broker who filters out the bad ones before they even hit your inbox, the risk becomes very manageable.

Both have real strengths and the right choice depends entirely on you as a buyer.
A franchise gives you a proven model and systems, instant brand recognition, ongoing support from the franchisor, a network of other franchisees to learn from, and often easier access to bank finance because lenders view the risk as lower. Buying a franchise can be a great first business. You get to be your own boss with someone there to hold your hand through the early days. New Zealand is actually the most franchised country in the world per capita, so franchising is genuinely in our blood.
An independent business gives you full control and flexibility, no ongoing royalties or franchise fees, and room to shape your own brand and business your way. You make all the decisions.
The Kakapo take is simple. It all comes down to the person buying the business. Have an honest conversation with yourself and your advisors about what will fit you best, or ask one of our brokers for a hand. We sell both franchise and independent businesses regularly and can help you work out which path makes sense for where you are and where you want to go.

Every sale is different, but from the date the sale and purchase agreement is signed and agreed, settlement typically takes place around two to three months later. That window allows time for due diligence, finance approval, lease assignment, and all the other moving parts to come together.
That said, there's usually a curveball in every sale and you won't know what it is until it happens. Bank finance approval, accountants needing more information, or a landlord dragging their heels on a lease assignment are the most common causes of delay. Every sale is unique.
The best way to keep things moving is to be prepared. Have your finance conversations started early, have your advisors lined up, and work with a broker who can anticipate issues before they become problems. That's where experienced brokers earn their stripes.

Once you've made an offer, your broker presents it to the seller along with the terms and any conditions you've included, such as due diligence, finance, or landlord approval. In some cases your offer may be one of several, which means you could be competing in a multi-offer situation. Your broker will let you know if that's the case so you can put your best foot forward.
From there, the seller has a few options. They can accept the offer as it is, counter with different terms or a different price, or decline altogether. This is where negotiation happens. Offers often go back and forth a few times while both parties work through the price, conditions, handover periods and any other deal-specific details until you land on something everyone is happy to sign.
Once both parties have agreed and signed the conditional sale and purchase agreement, the deal moves into the next stage where due diligence, finance and any other conditions kick in on the path to settlement. Your broker's role through all of this is to keep the conversation moving and guide both sides toward a result that works.