Although we’re fast approaching the end of the calendar year (and a well-deserved break), business certainly isn’t slowing down! A change in government, baby boomers exiting the market, and a consensus that interest rates have peaked has put those interested in buying & selling businesses in a favourable position according to LINK’s Business Development Manager, Steven Matthews.
“The rise in buyer enquiry over the past few months cannot be overstated,” notes Steven. This surge in interest can be accredited to buyer confidence skyrocketing because of a more business-minded government stepping into leadership as well as interest rates forecasted to fall over the next year. “More and more people are looking to seize quality business opportunities, resulting in both buyers and sellers feeling reassured that now is an ideal time to achieve those goals.”.
The expectation that a slew of baby boomers will be exiting the market, particularly over the next few years, is already in full swing. Steven acknowledges that this will become even more apparent well into next year. “2024 looks to be a busy year for business transactions for a range of company sizes and sectors.”.
Regardless of preference, experience or aspirations, there is no doubt that New Zealand’s business market will be packed with opportunities to pick from. However, Steven emphasises that it’s crucial for buyers to remember that there is no such thing as the ‘perfect’ business, and focusing on the long term is far more important. “Identify the key considerations for your ideal acquisition and be prepared to compromise!” he states. “Buying a business can be your pathway to financial freedom, a better lifestyle, and an opportunity to build equity for you and your family, so don’t get hung up on details that are likely insignificant to the bigger picture,”.
Steven encourages business owners interested in selling to take advantage of prime market conditions. “Selling is inevitable for every business owner, and doing so according to your own timeframe is essential, but when windows of opportunity present themselves, don’t overlook it,” However, it’s important not to rush things. “Preparation will always be the most important aspect of a successful exit from your business, and engaging a business broker to assist with identifying and mitigating any risks is a step that vendors should take to ensure the sale process is handled effectively.”.
As the benefits of business ownership become more widely recognised amongst younger generations, and longtime owners get ready for retirement, one thing remains clear: LINK has never been busier!