If you have considered selling your business, it really is time to take action. LINK has continued to have record enquiry levels on businesses for sale. Never have we seen a market so in favour of the seller. Quality buyers are plentiful, but there is not enough quality businesses to satisfy the demand. Our clear pinch point is finding businesses to sell. If you have considered selling your business, it really is time to act.
One thing that is in great supply for all of us is a giant pile of readymade excuses not to take action when it comes to selling a business. No matter what you do we are given reasons not to act, and right now, this is being delivered in spades.
We talk to hundreds of business owners every week and often hear the same thing, “It’s not a good time for me to sell right now”, and the rationale is often end of year financials, Covid-19, auspicious dates or perhaps a dodgy astronomy column!
If we put our lives on hold for things out of our control we lose the ability to make good decisions when they matter. Covid-19 is part of the world now and we have effective ways of managing this in sale process with very little impact on value in most cases.
Don’t miss this current window to sell, as none of us know what tomorrow holds, but LINK can tell you what is happening today, and it’s very positive for business owners looking to exit.
Key indicators that relate to increased business buyer activity
- Low Interest Rates
- Government Policy – Potential for more focus on business lending.
- Returning Expats looking to acquire a business versus seeking employment.
- Business Confidence – The longer we remain COVID-19 free the more business confidence increases.
- Corporate Unemployment – Professionals looking to acquire in the SME market.
- Migration to the Bay – The Bay of Plenty remains a lifestyle hotspot for nationals looking for a better quality of life.
- Zero CGT – At present there is no Capital Gains Tax on the sale of a business as a going concern.
- Attitude & Security – New Zealanders more than ever recognise the benefit and reward of building equity by running your own business.
For the potential business buyers out there, we have a little advice for you too. It’s very hard for business brokers to ascertain who is serious and prepared, and with a huge number of buyers to work with, it’s important you are clear about your intentions.
What will make a broker really sit up and notice you? Let them know you have spoken to your bank or other financier and are confident you can fund the acquisition, be clear what price range you are buying in, and that you are ready to move quickly if you find the right business.
No business is perfect and your willingness to make some compromises will put you in good stead also.
Like everything in life, the opportunities are there for everyone, but only those who act will benefit.