Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

When To Sell Your Business

New Zealand produces its fair share of entrepreneurs, and with it a proliferation of businesses. Many of these businesses are owned by our “now retiring” baby boomers, so how do you know when is the right time to sell your business to get the best from your investment?

Whatever stage you are at of business ownership, it is important to have a business exit plan in place. The exit plan should encompass all scenarios, not just your preferred option. Sometimes you may have no choice in the matter as unexpected eventualities like pandemics, divorce, ill-health or a failed partnership impact on your ability to continue with your business.

In most cases, there will be options, ie. one partner buying out the other, or selling the business to a third party.

It pays to consider various scenarios ahead of time and keep a close eye on the market so that when the right opportunity arises you will be prepared. Being “business sale ready” means that you can always be ready for whatever eventuates. Unforeseen events aside, you will be in the advantageous position of being able to sell when it is in your best interests to do so.

Some may intend to continue with their business until retirement, but situations and circumstances can change, so watch the market and identify any emerging trends, including the supply and demand for businesses such as yours. These factors may impact your business and the best timing for you to sell and maximize the return on your investment.

The key to any successful business is an enthusiastic operator and if your passion goes, then it may be time to place your business for sale. Keep in mind that deciding to sell a business you have founded, nurtured and grown, can be agonising - but it can also be liberating!

Growing companies are more attractive to buyers than static ones, and a demonstrated track record of growth will ensure your business sells well. Understand your industry, as when it is enjoying an upsurge, there will be no shortage of buyers willing to pay a premium to get in on the action. This is especially important if you consider your product to have a limited lifespan. Wait too long and you will have missed the moment.

As a business owner you should regularly monitor your business and the market. If you have an Auckland based business, check out the businesses for sale Auckland to see how many others are for sale and what price they are asking. Maintain the health of your business, ensuring it stays relevant and attractive to prospective buyers so you get your best price when you decide to sell.

For more tips on selling your business, visit nzbizbuysell.co.nz

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 



Consumer NZ: Buy-now, Pay-later Raking In $10m+ In Late Fees Annually

A Consumer NZ survey has found buy-now, pay-later services are costing shoppers more than $10 million a year in late fees. Close to four out of 10 Kiwi consumers use buy-now, pay-later services, such as Afterpay, Laybuy and Zip... More>>

Westpac: Catherine Mcgrath Appointed New Zealand CEO

Westpac Group CEO Peter King and the Westpac New Zealand Board today announced the appointment of Catherine McGrath as Chief Executive Officer, Westpac New Zealand... More>>


Amazon: AWS To Open Data Centres In New Zealand

Today, Amazon Web Services (AWS), announced plans to open an infrastructure region in Aotearoa New Zealand in 2024. The new AWS Asia Pacific (Auckland) Region will consist of three Availability Zones (AZs) and join the existing 81 Availability Zones across 25 geographic AWS Regions at launch... More>>

ALSO:



Statistics: Surge In Imports Results In Record Monthly Trade Deficit
Imports increased $1.8 billion in August 2021 compared with August 2020, resulting in a record monthly trade deficit of $2.1 billion, Stats NZ said today. Exports were little changed, down $42 million. "This is a larger deficit than normal because of higher values for imports.. More>>

Fonterra: Completes reset, announces annual results and long-term growth plan out to 2030

Fonterra Co-operative Group Limited today announced a strong set of results for the 2021 financial year, reflected in a final Farmgate Milk Price of $7.54, normalised earnings per share of 34 cents and a final dividend of 15 cents... More>>


Statistics: GDP rises in the June 2021 quarter

Gross domestic product (GDP) rose by 2.8 percent in the June 2021 quarter, following a 1.4 percent increase in the March 2021 quarter, Stats NZ said today. June 2021 quarter GDP was 4.3 percent higher when compared with the December 2019 quarter... More>>