Hi,

Buyer Beware – The Risks of Private Deals

Buying privately can seem like a way to save money, however it can also prove to be rather costly. We have just heard of a (yet another) case of a buyer negotiating directly with a business owner and thinking he’d bought a bargain. His idea was to spend a few months improving the business and to walk away with a healthy profit. The reality is he paid too much for the business and there were many undisclosed problems. The improvements he imagined were far more difficult than he calculated and there were several unforeseen expenses.

It seems that his get rich quick strategy has backfired and he’ll be lucky to recover his initial investment, even after all the hard work.

Dealing with an experienced broker allows you to get an understanding of the market and to clearly establish a reasonable price based on comparisons with other similar businesses. You can confidently negotiate a fair deal and better still, the service is free. There are no costs to buyers who use our expertise to locate, appraise, collect information, and negotiate the purchase of their dream business.

Give us a call to discuss how we can help you to find the ideal business without the headaches.
 

Regards,

Steve Smith AREINZ
MANAGING DIRECTOR
 

• Bartons Furniture has etched a strong reputation not just in Levin but in the southern part of the North Island. After 23 years of solid trade it is fair to say for the size of the business this is certainly one of the best around. Twelve months ago saw the rebranding to the highly popular group “Furniture To Go”. This association gives all its members, currently 50 plus throughout New Zealand, a strong buying privilege as well as customer awareness and confidence.
  
  If you are looking for a business with:
  
   Strong cash flow.
   Exceptional profits.
   80% managed.
   Close proximity to Wellington.
   Captured niche retail.
   Strong brand and aligned buying group.
   Long established.
   Stable talented team ensures the future and provides the expertise.
   Industry knowledge is not a necessity.
  
  This is your opportunity.
  
  Asking $595,000 plus stock ($300,000)
  
  Click here to learn more.

How To Get The Best Price When You Sell Your Business

Avoid the common mistakes in selling a business

Not allowing yourself enough time to find the right buyer – a typical business sale can take between 3 months and 6 months.

Controlling information. Confidentiality is key to maintaining the stability of your employees, customers, suppliers as well as your reputation in the industry.

Not having prepared complete, accurate, verifiable financial information ready to be disclosed to the right purchaser (at the right time).

Focusing solely on price in an offer – other considerations include the financial strength and experience of the parties making the offer, and the terms and conditions specified in that offer.

Not engaging legal and accounting professionals experienced in business transactions – a lawyer well versed in business sales contracts can help protect your interests in a comprehensive, efficient manner, your accountant will help minimize your tax consequences resulting from a sale.

Not using a broker. (Why an owner shouldn’t sell a business themselves)
 Cannot retain anonymity. Lost confidentiality could seriously damage a business.
 Owner may not be knowledgeable in current areas of law, accounting taxation and marketing of businesses.
 Doesn’t have time to contact, screen and qualify a large group of prospects to find the buyer who is serious and will offer a fair price.
 Third party is useful in negotiations.
 Owner’s talents are usually better at running a business than trying to sell it.
 Owner doesn’t normally have the knowledge, nor the experience in selling a business.
 

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