LINK Business’s Auckland Ellerslie office sales manager, offers his perspective on business trends for 2025, and what they mean for business owners and those looking for an opportunity to buy a business.
“Business owners are starting to feel more confident,” says Neil.
ANZ’s January 2025 business confidence outlook shows promise, although falling 8 points from December 2024, business confidence remains extremely high at 54.4. To reap the rewards of the fall in interest rates from the second half of 2024, practicing some patience will go a long way. Overall, the economy-wide reported past activity inched forward in January after December’s strong rebound. While the ups and downs persist, the overall trend in the market suggests recovery is underway—though it’s more of a slow cruise than a full-throttle acceleration.
This gradual economic recovery can be seen through the significant levels of enquiry LINK continues to have, with average numbers of buyer interest up over 20% year-on-year, and 40% up from FY22 and FY23.
With favourable financing conditions with the banks are now available, combined with dropping interest rates and business owners making the decision not to wait any longer, there are several competitively priced businesses coming to the market.
“This is driving strategic buyers looking to take advantage on pricing at the current market conditions.”
As the economic recovery continues and interest rates continue to decline, Neil explains that business values could rise further, which is prompting astute buyers to act now.
“Growth through acquisition is also a driving competition for good quality businesses to enhance operational efficiencies and generate new revenue/profit. We also have a surplus of baby boomers who are reaching retirement age and looking to sell – there are many that don’t have a succession plan and selling is the most likely exit!”
As a buyer this market presents you with opportunities you want to take advantage of. As for business owners looking to sell, preparation is key to ensure you maximise the value of your years of hard work.
“Engaging with a broker early provides you with clarity on the current market value of your business and what you need to do to ensure you get the best return on your investment.”
Key to this: Having accurate and up-to-date financial information. Buyers will scrutinise this so remove personal expenses and ensure everything is in order. Next, ask how reliant your business is on your involvement in its day-to-day operations. Exploring ways to reduce this dependency will work in your favour and offer you a strong standpoint in negotiations.
“Impressions matter, so presenting a clean and well-organised business will enhance its attractiveness.”
Neil continues that conducting preliminary due diligence on legal, HR, and operational aspects will also streamline the sale process.
“Be realistic and flexible with timelines and pricing. Working with a broker from LINK, with extensive market reach and industry expertise, ensures professional support through negotiations to achieve the best possible outcome.”
Achieving the best possible outcome starts with preparation.
For aspiring business owners, thorough research is key. Aligning your skills and experience with the right industry can make all the difference in your success. If you’re considering a business acquisition, LINK connects you with a team of experts—dealmakers, lawyers, financiers, and HR professionals—who can guide you through the due diligence process and add real value to your investment.
With the market rebounding, business confidence on the rise, and LINK Business Brokers by your side, 2025 is shaping up to be a promising year. Neil firmly believes that success comes down to strategy, not timing.
“There is never a bad time to buy or sell a business—just poor planning!”
As funding costs ease, the economy starts to recover, and confidence strengthens, opportunities are endless for well-prepared buyers and sellers. Leading bank economists anticipate that 2025 will be significantly strong for growth compared to 2024, with the second half of the year expected to offer the greatest upside. Now is the time to position yourself for success.
Get in touch with us here, to secure your future.
