It’s important to have a robust understanding of New Zealand’s business landscape in order to make informed decisions about selling a business. Dave Morgan of LINK Business Brokers Wellington has provided some valuable insight for potential business buyers & sellers regarding the market’s recent past, present and future.
Dave acknowledges some anticipated trends that have come to fruition recently, as well as some fresh ones. “We expected to see a lot of baby boomers sell their businesses as they get ready to retire and this has certainly become apparent over the last few months as we’ve received extensive seller enquiries. Interestingly though, because of what we’ve all faced over the last few years, we’re seeing more Boomers and even early Gen X’ers realise how precious their time is. They want to sell their businesses so they can fulfil other aspects of their lives while they’re still able to,” he says.
So, what does a rise in seller enquiries mean for aspiring business owners? More dynamic and lucrative businesses for buyers to choose from! Over the next few years, Dave feels confident that we will see a range of excellent businesses hit the market as the great baby boomer retirement gains momentum.
As a professional who’s observed a lot, Dave stresses the importance of preparation for vendors. “The earlier you speak to a business broker, the better,” he says. Trusting in professionals will ensure that sellers are fully equipped with the best possible advice to ready their business for sale. “Brokers are experts, and a huge part of their job is to identify what needs to be addressed and improved to secure worthwhile interest from multiple prospective buyers. Not only this, but their assistance during the transition period to a new owner is integral to finishing off a seamless sale,” Dave adds. When it comes to selling a business, engaging the services of a LINK broker is a no brainer!
Of course, preparation for business buyers is crucial too. Dave highlights the importance of working with a financial advisor early on to assist with securing funding. “Banks require a lot of detail in applications for business finance because they need to feel confident that buyers know what they’re doing,” Dave explains. “Financial advisors understand the bank’s criteria and expectations and more importantly, how to meet them.”
Looking ahead at what’s to come for New Zealand’s business market, Dave states, “I think we’re in for an exciting ride. It might be bumpy at times, but it certainly won’t be boring!”.
Whether you’re interested in selling or buying a business, get in touch with LINK’s experienced business brokers for a free, confidential chat today on 0800 546 528. Additionally, if you’d like to find out more about your finance options, contact Spring Loans on hello@springloans.co.nz
