owners have trusted LINK to sell their businesses
We sell businesses, better
We’ve been helping owners sell their businesses since 1996. Our experienced brokers will guide you through each of our proven 9 Key Steps – with tips and insights to help you manage the entire process of selling a business, safeguard your information, avoid uncertainty, and get the best price for your business.
Calculate an estimated value of your business in just 2 minutes
Request a FREE business value appraisal
Frequently asked questions
All sellers and buyers ask great questions about selling a business. Here are the answers to some we’ve heard before.
When a buyer indicates they want to make an offer, this needs to be in writing and in the correct format. Any verbal offers can become complicated, as they do not detail the terms and conditions of the offer. As part of our service, we prepare a Sale and Purchase Agreement using the Auckland District Law Society’s Agreement (or equivalent territorial document), which details the offer being made, and the terms and conditions. We will liaise between both parties in the process of negotiation to facilitate agreement between both parties. In many situations, we can recommend solutions to issues that may be of concern to either party. As a business owner, you need to ensure you are protected by having the right clauses in the agreement and it is advisable to seek professional advice.
Most business owners want the sale of their business handled confidentially. For commercial reasons they don’t want their competitors and suppliers to know they are selling. Once again, this is the advantage of using a specialist business broker. We work with potential buyers through the various stages, and you only meet with them at the final stages of the process. This leaves you to get on with business and keeps buyers away from calling or visiting you at work.
We will prepare a comprehensive marketing plan for your business incorporating notes on how to present the business, a detailed Information Memorandum prepared by us, advertising schedule and website and database marketing. In many cases, we find buyers from our database of qualified buyers. If confidentiality is required, any advertising is of a generic nature and never identifies the particular business.
This will vary depending on the complexity of the business and the industry. Normally, if all the information is available and the business is priced relative to the market for that type of business a sale should be concluded within 12 weeks.
Buyers want to know what is happening in the business currently along with any existing or future trends, so it’s important to have all the information ready and current, including having your accountant prepare up to date financial information.
We prepare a comprehensive Information Memorandum on your business. This will typically include:
Background of the business, highlighting opportunities for a buyer and the reasons for the sale.
- The sale process and description of assets etc.
- The historical financials, trading to date and comment.
- The business valuation appraisal.
- Operational matters.
- Information on premises, including details of lease.
- Appendices including marketing material, plant and equipment schedule, etc.
This is prepared in draft format first for approval by the vendor.
It is important that you have all the right information and details available before you start to market the business. A business well prepared for sale will sell more quickly.
As part of our service, we will assist you in the preparation of this information and once again it needs to be presented in the right way with the right information. This information is also required to establish the selling price for the business and certain calculations need to be made to work out the true net profit of the business. Items you should have available are:
- Profit and Loss accounts from the previous 2 to 4 years.
- Identify and quantify abnormal and/or non-recurring costs in accounts.
- Identify all items of personal and drawings nature.
- Copies of internal accounting reports for year to date and/or GST returns if available.
- Copy of the lease.
- Brochures or information on your product or service.
- Background on the business.
- Staff details.
- List of plant and equipment and any equipment leases.
- Copy of franchise agreement if a franchise business.
Make sure the financial information is current and accurate. If you’re selling halfway through the year, you could get your accountant to prepare half-year accounts for the purpose of selling.
This is a very important aspect of selling a business and probably the most contentious. There will be many views on what constitutes value. Sellers will have one view, buyers another, accountants another, etc. There are multitudes of formulations, all of which produce different figures depending on who you’re talking to.
It is important to recognise the price range your business is likely to sell in. If you’re unrealistic it won’t sell, and you and likely buyers will become very frustrated. You could also be harming the prospects of a sale sometime in the future. If you’re too low, then obviously you miss out or create suspicion.
Businesses sell in an open market with a willing buyer and a willing seller. The market determines the price – the true value.
When we meet with you, we will gather detailed information on your business and then present you with a Market Appraisal. This gives you the price range we expect to sell your business for on the open market. This is not a valuation and cannot be used for that purpose.
For a formal valuation appraisal and opinion, many business owners use LINK to have a written opinion prepared on their business and establish the price range. This is useful in the case of one partner wanting to buy out the other partners, a management buyout or valuation for family estate planning.
Selling your business for the best possible price
This seminar is designed for business owners and shareholders who are considering selling their business now, in the coming years, or if you are simply curious on how you can increase the value of your business.
This two hour seminar includes:
LINK Enterprise is our high-value business sales division selling businesses ranging in value from $2 million to $50 million. The Enterprise team have successfully transacted over 200 high-value deals ranging from outright sales, partial share sales, acquisitions and mergers.
LINK’s size and reach means that our brokers have the opportunity to utilise their knowledge, experience and connections to specialise within particular sectors. This means they understand the challenges facing each industry and how to successfully match the right buyers with sellers.
We facilitate thousands of successful business and franchise sales every year and have established ourselves as industry leaders.
Recognition of our ongoing excellence
We are always thrilled to be recognised by our peers and customers across the globe. Here’s just a few of our most recent national awards that we’re particularly proud of.
The secrets to a successful business sale
Selling a business can be a huge challenge. With more than 25 years’ experience, we have learned a few key principles to help you avoid the pitfalls.
Marketing makes all the difference
Business owners who engage LINK exclusively and invest in our Ad.LINK marketing programme increase their chance of selling by more than 350%
Honesty is the best policy
Establishing and maintaining trust means not trying to hide or disguise anything. Any irregularities or problems will almost certainly be discovered by a buyer and their advisors during the due diligence process.
Sell by numbers
Buyers (and their accountants) will want to see up-to-date figures – financial accounts, cashbooks, banking and GST returns. Lease agreements should be available for inspection and ideally have a reasonable term left to run. Being ready with this information keeps the sale moving along smoothly.
Give it time
Business owners who engage a LINK broker typically sell in three or six months, but large, complex enterprises may take longer.
Once an offer is received, it generally takes around six to eight weeks to complete the sale process. Being in a hurry to sell puts you in a weaker negotiating position.
Be optimistic, but realistic
Providing potential buyers with future scope and forecasts that are reasonable and achievable (including any specific details) can further demonstrate the value of your business.
Presentation is everything
You will get a better price if your business looks professional and organised and is clean and tidy in all respects, including signage, interior, fittings, office, and storage areas. Your plant and equipment should be in good operational order.
Show a prospective buyer how easily they could take over by writing down all of your operations. Include your suppliers and major customers, business processes, the hours of operation, service providers, and what records to keep.
Use a business broker
LINK brokers have specialist expertise derived from many years of experience in business sales. We can provide advice and guidance every step of the way, protecting your confidentiality, qualifying genuine buyers and taking care of all the details. All this leaves you free to do what you do best – running the business.
Sell high (but not too high)
If you price your business too high, savvy buyers won’t consider it. Price it too low and you are throwing away hard-earned money.
Your LINK broker can guide you on what the market is paying for similar businesses and what else is on the market in the same broad category.
Contact us for a
Our LINK Business Brokers are able to provide advice and insights that will improve the value of your business. Simply fill out the form below or call 0800 546 528 for an obligation free, and 100% confidential chat.
When is the best time to sell my business?
We will schedule a meeting to discuss the specifics of your business and your personal plans for exiting from it. With our experience in business sales, we can prepare an exit strategy for you, taking into account factors that will be instrumental in finding the right buyer at the right price for your business.
After we have an understanding of your business, we will make suggestions on strategies that may be of benefit to you in the preparation of your business for sale. Buyers will be looking for certain things when considering your business and our recommendations can make the difference in effecting a quicker sale at a better price.
Should I sell my business?
Deciding whether to sell your business is a critical decision. Our experienced brokers can help you evaluate market conditions, business performance, and personal objectives to determine if it’s the right time for you to sell. 2. What factors should I consider before selling my business?
There are several factors you should consider before selling a business, such as your personal readiness for a transition, business profitability, industry trends, market demand, and potential growth opportunities. Our team can provide a comprehensive assessment to guide your decision.