There are many factors that can impact the sale of your Tauranga business. Some are under your control, such as maximising profits and ensuring the business can run without you. Other factors are outside of your control, such as technological innovations and the economy. If you’re planning to sell, it’s important to keep tabs on outside influences so you can take advantage of favourable conditions.
If you own a business in the Bay of Plenty, it is a good time to sell. Business growth in Tauranga City averaged 3.8%pa in the 10 years to 2023 versus the average of 2.3%pa in New Zealand. This is a good sign that there are people wanting to buy established businesses in the city as well. Informing prospective buyers of the growing economy can also help you negotiate a better deal. LINK’s business brokers can help you leverage the conditions towards a successful sale.
A Booming Regional Economy
The Bay of Plenty economy has been at the top of the regional economies for both 2016 and 2017. In 2017, the region had a GDP of $14.4 billion and was worth 5.5 percent of New Zealand’s GDP. The annual growth of 9 percent was almost 3 percent above the national average.
The population is also growing, which helps keep the economy growing. Tauranga City population growth averaged 2.6%pa over the 5 years to 2023 compared with 1.3%pa in New Zealand.
Currently (2023), approx 161,800 live in Tauranga City, and the population is growing! Earnings growth helps attract skilled employees to the region. The University of Waikato has a campus located in the heart of Tauranga city, that will help educate the next generations – and encourage them to stay in the area.
Tauranga and the Bay of Plenty have an economic development agency dedicated to helping the region prosper. Priority 1 is the only economic development organisation in New Zealand that has been developed by the business community. Its vision is to provide ‘a sustainable and value-driven economy that improves productivity and delivers prosperity to local people and communities’.
Ideal Location
You may think the Bay of Plenty is an ideal location for the beautiful beaches, plentiful sunshine and relaxed culture, but the region brings more for businesses. The small-town feel has nurtured a close business community that’s always willing to help new businesses. Tauranga is the headquarters for a group of angel investors that like to support locals as well as a high-tech incubator that helps get new ideas off the ground.
Tauranga is strongly connected to the wider world as well. Port Tauranga is the largest port in New Zealand by cargo volume, and the amount of cargo handled are growing. In 2024, the port’s Chief Executive reported that in the three months to the end of September 2024, when compared to the same time period last year, total trade increased 7.6% in volume, and container volumes increased 17% to 292,860 TEUs.
Businesses looking for Kiwi customers are well-situated as nearly half of New Zealand’s population live within three hours of Tauranga. Auckland’s just a short plane ride away, yet rents in the Bay of Plenty are around 40 percent cheaper, which means fewer operating costs and higher profits.
Expert Brokers on Hand
Local business brokers understand the local conditions. They have expertise in the region’s economy as well as a network of people in the area that can help market your business and bring in potential buyers. Knowledge of the local market also helps brokers give an accurate valuation for your business.
Of course, business brokers bring far more to the table. They are experts in selling business and understand the steps you need to take to get your business ready to sell, maximise the value and prepare the business for sale. They know how to market a business while maintaining confidentiality and how to negotiate the best deal.
Choosing an expert broker is an important early step if you’re ready to sell. LINK business brokers Bay of Plenty bring local knowledge, years of experience, and great service to their clients. Their expert advice and assistance can help you get the most from your business sale.
