Hi,

• How Long Will It Take To Sell My Business?

   

  This is a loaded question - asked by many, if not all, and has a number of qualifying issues which determine the answer.

   

  §         Quality of information provided

  §         Price expectation

  §         Market conditions

  §         Marketing expertise

   

  We have just completed a survey of businesses sold over the first quarter of 2007, the result of which showed that the average time on the market was seven weeks.  However, it is important to qualify this fact with the following points; all those businesses provided clean, concise information, both financial and intellectual.

   

  The owners were also prepared to take the advice of the business broker both in regard to pricing and marketing strategies.  This created an environment where the broker and vendor worked together as a team to achieve a premium price in an expedient time frame.

  To find out more call either Steve Smith or Richie Lowe on 09 630 1600.

Regards,

Steve Smith AREINZ
MANAGING DIRECTOR

Arrow Backpackers is located in the heart of Blenheim, which is a main regional town and centre of the Marlborough wine industry.  Dubbed the ‘sunshine capital’ of New Zealand, Blenheim’s hot summers and crisp winters have helped it become the country’s largest grape growing and wine making region, and it is becoming a magnet to wine lovers, tourists and investors. There are nearly 50 wineries located in the Wairau River Valley Region, within approximately 12kms of Blenheim. The continued worldwide interest and demand for Marlborough wines fuels an ongoing growth of plantings.  With the strong demand in the area, Arrow Backpackers was established in 2004 to provide affordable accommodation for all budgets including tourists and vineyard workers.

The business is ideally situated just off State Highway 1 and has a neighbouring Four Square Supermarket/Post Office which provides the guests with easy shopping for their daily needs.  Blenheim Railway Station and i-site (Information Centre) are within walking distance and Nelson and Marlborough Institute of Technology with Marlborough Wine Research Centre just a few doors up.  Demand in the area for this type of accommodation is very strong and there is significant growth forecast over the short to medium term. Arrow Backpackers is well positioned and has plenty of space to  add more units to take maximum advantage of anticipated growth.

Two separate buildings are situated on 1,257m2 of commercial/industrial zoned freehold land and currently accommodate a total of 33 people.

Asking $690,000 Freehold Going Concern

Click here to learn more.

How to get the best price when you sell your business
 

Talk to an experienced, specialist business broker

They will help you to:

1. Price your business

2. Let you know what you need to do to prepare your business for sale.

Pricing Your Business

The price of any business is the amount of money, on suitable terms that a buyer is willing to pay and a seller is willing to accept for that business.

An experienced business broker will have the ability to provide an opinion of price that reflects what a purchaser would expect to pay knowing the market conditions and current realisable values. There are many variables to consider when determining the value of a business. The “Hard” figures include assets, liabilities, past earnings, profits, and cash flow. The “Hidden Values” of the other assets include know-how, suppliers, employees, location, reputation, appearance, customer base, benefit of leases etc.

There are lots of formulae for pricing a business. Buyers may base a purchase offer at least in part on the value of the assets in your business, the cash flow, gross revenues, annual growth and other factors. The sale price is often a multiple of the business’s profit. That multiple varies from industry to industry and business to business, and will be considered whether the buyer is an individual who wants ownership of a company or a larger organisation searching for strategic acquisitions.

Industry trends, company dynamics, company history, equipment value and condition, capital requirements, barriers to entry, intellectual property, employee turnover, and owner’s duties are just a few of the factors that will impact a company’s value. Establishing a fair price with terms competitive with other business for sale will help you to achieve a successful result. Your business broker will work with you  and your other professional advisors to find that range.

Call us at 09 630 1600, toll free on 0800 180 222, visit our website www.abcbusiness.co.nz or email Managing Director Steve Smith (AREINZ) on steves@abcbusiness.co.nz