Selling A Business

At Barker Business, we recognise the significance of selling a business and the impact it can have on your life. With our extensive experience and expertise in business sales of all sizes, we are committed to ensuring that you receive the maximum value for your hard work. Trusting us with the sale of your business means entrusting it to a team that understands the complexities and intricacies of the process, and will go above and beyond to ensure a smooth transition and successful outcome.

Request A Free Appraisal

Getting a business appraisal is the first step in the selling process. Whether it's just to find out where your business sits within the market or you're wanting to list it tomorrow, this is what we need.

 

Request a FREE, no-obligation business appraisal

 

Selling Business 
Brokers

 

Confidentiality

We fully understand the importance of keeping the sale of your business confidential and we are experts in marketing and generating enquiries in the strictest of confidence. Our team prides itself on our ability to sell your business without disclosing what your business is.

No Sale, No Fee

Our business is selling businesses, so we have a lot of expertise that can help you succeed. Working with us is a great way to benefit from all this knowledge and you don't have to pay us a commission if your business doesn't sell. What’s more, you will benefit from a standard marketing refund once your business sells unconditionally.

 

Our Business Sale Process

In order to maximise your sale price and help you achieve your goals, we take a considered approach

The process of selling a business can be lengthy and involved, but also exciting. Our dedicated team is here to ensure it’s as seamless and rewarding as possible for you, therefore our approach to selling your business is carefully considered. Knowing what buyers look for and how they make decisions allows us to provide valuable insights into your business's sales potential. With our honest information and professional advice, you'll be able to better understand the true value of your business.

 

Specialist Business Brokers

 

Specialist Business Brokers

Our highly reputable Business Brokers have considerable experience facilitating the sale of businesses across all industries.

Your business will be matched with a Business Broker that understands your unique business landscape. Having in-depth knowledge of your type of business makes them well-qualified to enhance your sales strategy. Covering all industry sectors, we have dedicated teams who specialise in Childcare sales, Aged Care sales, Hospitality and Premium businesss sales, our division is for larger companies with a value of $3 million and above.

Honest and Reliable Business Appraisals

We've produced thousands of free business appraisals so when we say we know market values inside-out, we mean it. The process starts with an honest, upfront appraisal based on comparative market data and other key factors. For us, credibility is everything, so we won't just tell you what you want to hear and we will never promise what we don’t realistically believe we can deliver. “Business sales with integrity” is more than a tagline to us, it’s our ethos.

 

Request a FREE, no-obligation business appraisal

 

Business Sale Strategic Marketing

 

Marketing Your Business

We use effective marketing strategies we know work. We'll promote your listing via different marketing channels and buyer matching through our extensive database. We'll also refund your standard marketing package fee once we achieve a successful business sale. Barker Business will also list your business for sale on our websites, and run it through our own database of pre-qualified suitable buyers as well as various marketplace websites to target acquirers of businesses that fit your size and profile.

Business Information Memorandum Preparation

Quality marketing materials include a “teaser” advertisement followed by a comprehensive overview of the business in the form of a Business Information Memorandum for interested buyers that have been screened by the Broker. Our comprehensive memorandums are expertly designed to highlight your competitive advantage and position your business perfectly to interested buyers. Having the credentials handy means we can speed up the sale process as prospects won't need to go back and forth asking questions, so you can carry on with running your business. In addition, our memorandums are provided to interested buyers free of charge as part of our service. This means that even if we are unable to sell the business, you will still have a professionally designed information memorandum and advertisement, saving them potentially thousands of dollars!

 

Presenting Your Business to Prospective Buyers

Our buyer network is robust, and we have the resources to reach even more prospective purchasers

We work closely with business buyers and sellers across New Zealand and the Pacific through our national business brokerage team. With a large database of qualified buyers, our team excels at connecting buyers and sellers, understanding and aligning their objectives. It is our mission to ensure that the right parties are brought to the table.

Evaluating Prospective Buyers

We dedicate significant effort to thoroughly evaluate each prospective buyer's financial capability and suitability to effectively operate your business. Our rigorous process ensures that only genuinely interested and qualified parties are considered, saving you time and safeguarding the confidentiality of your business information. By focusing on the right buyers, we enhance the likelihood of a successful sale and help realise the full value of your business opportunity. This meticulous approach not only saves time and money but also protects and promotes your interests throughout the selling process.

Negotiating The Business Sale

Purchase price is just one component of an offer. There are other conditions that can significantly impact the attractiveness of a proposal. Our skilled Brokers have years of experience in negotiating the best possible outcome for both parties and will help you navigate terms, make informed decisions, and communicate effectively with the parties involved. Additionally, business acquisition negotiations can be emotionally charged. A trained Business Broker will help the parties keep emotions to a minimum and stay focused on a mutually beneficial outcome.

Sale and Purchase Agreements

Without the use of a Business Broker, navigating the sale and purchase process can be complicated, not to mention expensive. As part of our service, we draft up a standard Sale and Purchase Agreement, including any required further terms as requested. Once the contract has been agreed upon by both parties and signed, the due diligence process starts. This is normally a 10 working day process but may take some more time depending on any complexities. There are common questions which arise during this process and we are here to help but we also advise you may want to use a professional advisor such as your Accountant.

 

 

Ready to Talk Business?

Successfully selling a business can be a complex process, but our selling system is well-organised and our Business Brokers are well-qualified. When it comes time to negotiate the deal, we want to get you the best possible price for your business. Our expert advice can help you understand the factors at play throughout the entire process.

What’s Involved In Preparing A Business For Sale?

Selling a business is not always an easy or simple process. However, the rewards can be great, and ultimately, life-changing; so if you do decide to sell there are several key issues you need to be aware of that will help you maximise your chances of success. Careful planning can make all the difference in achieving a successful business sale.

We understand the ups and downs that every business experiences because many of us have been business owners too. Timing is everything when it comes to listing your business for sale, and getting it right the first time is crucial. Getting it wrong before you start can ruin any hopes of a sale and can mean many months of your time wasted. Potential experienced buyers will see straight through the flaws in the business you are selling and will quickly pass over your offering if they see any red flags.

Click on each of the tips below to learn more about what’s involved in selling a business.

Financial records
  • Last year's Profit & Loss Statements whether it be internal or accountant produced
  • A PC Sum of Stock and Book Value Plant (plant replacement cost would be handy also)
  • Ideally
  • 2-5 years full accounts – depending on the business size (3 years is typically fine)
  • Current internal accounts to the most recent month or so
  • A forecast if you have one – with reasons why for the increase or decrease
  • A PC Sum of Stock
  • A full Plant list including everything that is to go with the sale. Please note, if you wish to retain plant items please remove or cross out
  • A copy of your current lease and other lease agreements including equipment leases
Nice to have
  • A list of key employees and employment agreements
  • Does it have a general manager? Can anyone be promoted?
  • A financial forecast
  • Business plan

Restraint of trade

All Directors/Shareholders will be required to sign a non-competitive clause that they will not compete in the same industry.

Assets included in the sale

Buyers will want to know exactly what they are buying before they make an offer. A complete list of business assets is required.

We regularly speak to business owners who believe they have a potential gold mine and expect to command a high selling price based on perceived potential alone. This isn't how it works. If a business is simply a concept without a proven revenue stream then there isn't any value in the eyes of the vast majority of potential buyers. The business must be priced correctly as potential purchasers look at many businesses before deciding on a purchase – and they want value for money.

Buyers are interested in profits, not revenue

Another common misconception is that buyers are impressed with revenue figures. Sure, they can sound good, but when it comes down to it the only number that matters is the Profit or Cash Surplus to a working owner that a business makes.

Buyers expect verifiable financial claims

If you are going to claim revenue from a specific source, you need to have verifiable proof. It is very difficult to claim cash that you have put in your pocket.

The previous success of a business is largely irrelevant at the time of sale, especially if it has been struggling lately. Buyers are interested in recent performance (usually the last 12 months) and future sustainability and viability, especially if you operate in a dynamic space. We commonly hear sellers talk about how successful their business was in the past. They say “The business has suffered after a recent drop and all it needs is a little work to get it back on track”. Unfortunately, buyers don't see it this way. They aren't interested in fixing and recovering your business, especially if you are expecting them to pay a premium. However, don't be afraid to show previous years if the business has been growing steadily. Buyers love to see growing revenue and profit figures, especially if you have already made future plans for the business that seem realistic based on past performance.

The first question a buyer usually asks is “How much?”. The second question is “Why are they selling?” This is why a logical explanation is required.

The truth is always going to surface, so be upfront about everything from the beginning. Experienced investors understand that every business is going to have positives and negatives. There is no such thing as a perfect business. If you are honest and transparent from the start there is less risk of a deal going sour because the buyer uncovered something during the due diligence process that wasn't accurate or an instance where the truth was stretched. Honesty is the best policy in all business transactions and selling any business is no different. Avoid surprises, as surprises will destroy the buyer’s trust and the buyer will run, not walk, to another opportunity. Never judge a buyer. You never know who you are dealing with or the buying power they possess. Someone asking what appears to be a simple question could potentially be a buyer that is new to the specific industry and has deep pockets for investing. Experienced buyers will often hammer the seller with questions in an attempt to turn up inconsistencies and red flags.

There are a lot of dreamers and ‘tyre-kickers' that can waste a lot of time for inexperienced vendors. The only real key to approximately qualifying the purchaser is through good questioning, experience and target-specific marketing. To do this they not only need to understand their own business but have to possess an extensive knowledge of the market they operate in from the purchaser's perspective.

When it comes to buyers who aren't genuine, we’ve seen it all from “wannabe buyers” who want to buy a business but are in no way ready to do so, the “tyre-kickers” who are simply curious about what kinds of opportunities are available and the “sharks” who are searching for sellers who look overly anxious to sell and who may be willing accept rock-bottom prices.

Barker Business Brokerage will strive to make the sale less stressful by obtaining information that verifies the buyer’s financial capability, business licence or certifications, or other necessary qualifications. Our job as your Broker is to separate the strong prospective purchasers from all the others, which allows you to get on with the important task of running your business.

Do not decide that as I am going to sell I will step back. Keep your business humming and make sure it is clean and appealing.

Landlords can be deal killers. Buyers need to know if the lease will be assigned or a new lease needs to be negotiated.

Using our systems and experienced sales people, we promise to strive to achieve the best possible price on today's market for you.