What you will learn

learning an instrument proficiently is a discipline that takes years and even the greatest musicians never stop learning 

1. Preparation

Preparing my business for sale

Once you’ve decided to sell your business, it’s time to think about what is required to present a valuable and realistic offer to potential buyers. Depending on your needs, your business might benefit from maximising earnings, improving efficiency or changing some structures. I’ll support you in designing the best offer and work within your time frame. While now is always a good time to sell, too many brokers desperate for a quick sale pressurise sellers into making sale decisions before they are ready. My goal is to help you sell your business at exactly the right time for the right price.

2. Appraisal

Business appraisal, business valuation

The right price for any business sale is simply what the market is prepared to pay. Accurately gauging this is as much an art as science and it starts with a rigorous business appraisal using my experience, our superb valuation software, a rigorous peer review system and over 20 years of Bizstats statistics of past business sales in New Zealand. The appraisal based on your financial performance and multitude of other variables, coupled with your own price expectations provides us a starting point to present your business to the market.

3. Information Memorandum – the “IM”

Getting your business ready for sale

With an acceptable market appraisal in hand, I’ll work with you to craft a professional Information Memorandum that details your business' key selling points, including financial information, staff quotients, property information and market opportunities. This essential document is designed to paint an accurate picture and portray your business in the best possible way to get your business ready for sale and attract serious buyers.

4. Identifying buyers

Finding a buyer for your business

Often I sell a business before it's advertised. This is because I have access to the Link database of qualified purchasers seeking businesses in all sectors. This database allows me to discretely approach parties that I believe may be interested in your business without divulging information that can identify your business. This can often drastically reduce the time it takes to get your business sold, but it’s not the only way I find the right buyers for a sale.

5. Marketing your business

Marketing your business for sale

Apart from WikiLeaks, no one can sell a secret! After crafting a professional IM, marketing is the most important aspect of your business sale process. I take your confidentiality seriously and most businesses I sell are marketed without divulging the name of the business. Instead I provide just enough information to whet a potential buyer’s appetite to lodge an inquiry. Through our marketing platform, I can reach upwards of 51,000 registered buyers and our international reach ensures I receive inquiries from further afield than just the bounds of Christchurch or New Zealand.

6. Qualifying buyers

Finding the right buyer for business sales

Qualifying suitable buyers is often time-consuming and difficult. With the responses from my marketing campaigns, I ask interested buyers to sign a confidentiality agreement to protect you. Then I try meet face-to-face to ensure they can afford the purchase, assess their suitability and ensure there are no confidentiality conflicts. I ensure they understand the confidentiality agreement and walk them through the IM. When the buyer wants to know more, I arrange a Vendor-Buyer-Broker meeting that allows a candid exchange of questions, answers and ideas between all parties. This often seals the deal, with the buyer making a formal offer. 

7. The formal offer

Sale and Purchase agreement for business sale

Unlike buying a house, most businesses require significant ongoing time and financial investments by the new owner to ensure they continue to grow and prosper. Going into this is not for the faint hearted but fortunately the process we use has been successfully tested by thousands of business buyers and sellers for decades. Once a buyer has decided to proceed, I draw up a formal, legally binding offer on a Sale & Purchase Agreement that accounts for all parties’ unique aspects.

8. Due Diligence

Due Diligence for business sale

A formal offer will usually include a period of Due Diligence to allow everyone involved enough time to arrive at an unconditional situation, fully informed and at peace with their decision. This often involves providing information not previously supplied due to commercial sensitivity. The due diligence process generally takes five to 15 working days, although for more complex businesses, it can be up to three months or more. Should a buyer choose not to go ahead with the sale, any material they have received is collected by me and destroyed. 

9. Settlement

Business sale settlement

After all the Due Diligence requirements have been met and the sale has gone unconditional, Solicitors draft up all legal documents for handover of the business to the new owners. This usually includes a period of vendor assistance for training or completing projects and tasks specific to the old business and smooth transition to the new owners. Once it’s all said and done, we can raise a glass of champagne and toast selling your business!

Want to talk about buying or selling?