How To Sell A Business

Selling a business in New Zealand requires meticulous preparation, strategic planning, legal considerations, financial scrutiny and a thorough understanding of the market dynamics.

If you’re looking to sell a business in New Zealand, you’ll need to:

1. Prepare your business for sale - A well-documented business makes for appealing buyer opportunities.

2. Exert the experts in business selling - You’ll need a competent and trusted Business Broker, Accountant and Solicitor.

3. Value your business to meet the market - A fair and honest valuation is key for a swift and profitable sale.

4. Marketing plan - Target your buyer market with a robust marketing strategy.

5. Negotiate a deal - Keep in mind what’s important to you for the sale of your business.

Whether you’re a seasoned business owner looking to move on to new ventures or an entrepreneur seeking to capitalise on the fruits of your labour, the process of selling a business in New Zealand demands a well-thought-out strategy. At Kakapo we’re here to offer our expertise for successfully navigating the sale of your business in the picturesque and business-friendly landscape of New Zealand.

5 stages of selling a business in New Zealand

For a better understanding of what’s involved in selling a business we’ve broken down the key stages and what to consider at each level:

1. Prepare your business for selling

Thoroughly preparing your business is pivotal when considering a sale. A well-documented business not only showcases transparency but also makes for a more seamless transition for potential buyers. It signifies that your business is structured, organised, and capable of delivering necessary information to instil confidence.

During this initial stage is a good time to assess any room for improvement, tie up any loose ends, streamline any processes, identify your assets and make any adjustments that will increase the value. The more information, statements, systems and processes you can gather the better. Additionally, make sure all contracts, leases, licences and patents are in place.

The preparation not only simplifies a sale process it also enhances the perceived value of your business in the eyes of prospective buyers – this positions it as a more attractive investment opportunity.

2. Hire a Business Broker

Next, you’re going to want some experts in your corner to help you navigate the complexities of the next few stages. Enlisting the professionals is essential to a successful business sale. A competent and trusted business broker plays an important role when selling your business.

A skilled business Broker can provide valuable guidance throughout the process. They can help you to:

• Prepare your business for sale,

• Identify potential issues and make necessary improvements to increase value

• Accurately value your business,

• Create and execute a multi-faceted marketing plan,

• Actively seek out potential buyers

• Help you with negotiations to receive a fair and profitable price and achieve a successful sale.

In addition to a business broker, you’ll need an experienced accountant, who will ensure your financial records are accurate and that you’re well-prepared for the financial aspects of the transaction. Their combined knowledge and guidance are invaluable when it comes to achieving a successful and profitable business sale.

3. Value your business

Accurately valuing your business is fundamental for a successful sale. A fair and honest valuation is not only essential but also decisive in attracting the right buyers and ensuring a swift and profitable transaction. It sets the foundation for a transparent and mutually beneficial sale, allowing both parties to enter the negotiation process with confidence and trust in the fairness of the deal.

Valuing your own business objectively is challenging when you’re so close to it. A knowledgeable Business Broker can thoroughly assess your business to give you an accurate personalised valuation. They can use their years of experience in the industry, as well as their understanding of financial metrics and knowledge of recent transactions to determine a true fair market value.

4. Marketing plan

Once you’re past the prep and valuing stages, the next step is to get in front of potential buyers. By identifying and targeting your ideal buyer market, you can maximise the exposure of your business and create a competitive advantage.

A robust marketing strategy not only showcases the strengths and unique selling points of your business but also increases the likelihood of attracting the right buyers who resonate with your offerings. You only want to attract serious offers from pre-qualified buyers who can follow through with the transaction.

You’ll need to create a multi-faceted marketing approach to draw out your best prospects. Remember to screen your buyers, and work with lawyers to provide necessary confidentiality agreements and tailored purchase agreements.

5. Negotiate a deal

Once you have an interested buyer with a written offer you can begin negotiations. It’s essential at this stage to keep in mind what is important to you in the sale, whether it’s the final sale price, a smooth transition, or the future well-being of your business.

Your Business Broker can guide you through the negotiation process, leveraging their expertise to secure the best deal possible. They will help to balance your objective with the expectations of the potential buyer to make sure the negotiation aligns with your desired outcome.

You’ll want to be responsive and cooperative at this stage to encourage a seamless transaction. Once both parties have signed the contract the due diligence process begins with the purchaser and their lawyer. This phase involves a comprehensive examination of the business to verify the accuracy of the information provided. Following successful due diligence, the contract is declared unconditional, and you’ve sold your business.

What makes Kakapo Business different from other business brokers?

What sets Kakapo Business apart from other business brokers is our dedication to a personalised approach in every business sale. We understand that each of our clients face unique challenges and opportunities. Our commitment to this level of customer intimacy means that we invest the time to thoroughly comprehend your businesses, allowing us to confidently and effectively showcase your distinctive value proposition and deliver exceptional service.

Through regular check-ins, open feedback sessions, and ongoing communication, we ensure the business owners we collaborate with feel not just heard but truly valued and supported. We are proud of our customer-centric approach. We are always available to listen, respond promptly, and offer tailored solutions and strategies precisely honed to your business.