What buying a business actually involves
Most people underestimate how involved the buying process is. Understanding each stage before you start means fewer surprises and a better outcome.
Find a business and sign the confidentiality agreement
Browse listings and fill in the confidentiality agreement on any business that looks suitable. The CA is required before Joel can legally share detailed information about the business. It does not commit you to anything and is standard practice in all business sales.
Joel calls you personally
Once the CA is received, Joel phones you directly to discuss the business, understand what you are looking for, and answer your initial questions. From here, the Information Memorandum is provided and the process moves forward.
Review the Information Memorandum
The IM gives you a comprehensive picture of the business: its financials, operations, history, staff, and growth opportunities. Take your time with it and come back with questions.
Meet Joel, then meet the vendor
An in-depth meeting with Joel where you go deeper on the business, review more detailed financials, and get your questions answered properly. If the business still looks like a good fit, you will meet the vendor directly. By that point both parties are well-informed and the conversation is far more productive than a cold introduction would be.
Make an offer
If you want to proceed, Joel drafts a sale and purchase agreement for review by you and your lawyer. The agreement will typically include conditions tailored to your requirements, give you appropriate protection, and allow sufficient time for due diligence and finance to be arranged.
Almost all NZ business sales are structured as asset sales. You will set up a new company to purchase the assets and goodwill. The vendor's existing company remains with them, along with any debts, liabilities, and accounts receivable. You start with a clean slate.
Due diligence and settlement
You, your accountant, and your lawyer review the financials, contracts, and legal matters. Once satisfied, conditions are confirmed, the agreement goes unconditional, and the deposit is paid and held in a trust account. There is typically two to three weeks to arrange contracts and legal requirements before settlement proceeds. Congratulations, you have successfully bought a business.
Key things that catch buyers off guard
Funding takes longer than expected
Getting finance approved takes time. Start conversations early, before you make an offer. A good finance broker is also strongly recommended. They know which lenders suit business purchases, help structure the application correctly, and buyers who use one consistently secure better terms than those who go direct to their bank.
Get professional advisors
An accountant and a lawyer with experience in business sales are highly recommended. They protect your interests and review detail you cannot easily assess yourself. It is possible to proceed without them, but the process is considerably harder and the risks are higher.
The process takes time
From signing a sale and purchase agreement to settlement typically takes four to eight weeks. Allow for this in your planning, especially if you are leaving employment.
The vendor stays involved
Most business sales include a handover period where the vendor works alongside the new owner. Understanding this arrangement before settlement avoids surprises.
Looking for something specific?
Most business sales are driven by the vendor. The broker works for the seller, and buyers engage with whatever happens to be listed at the time. That works well for many buyers, but not all.
If you have a clear picture of what you are looking for and are serious about acquiring the right business, a buyer's agency arrangement puts the process to work in your favour. Rather than waiting for the right listing to appear, Joel sources and approaches suitable businesses on your behalf, negotiates with your interests as the priority, and manages the process from the buyer's side.
This is not a service for everyone. It works best for buyers with a specific industry in mind, a realistic budget, and genuine readiness to proceed when the right opportunity is found. If that sounds like you, get in touch to discuss whether it is a fit.
Dedicated representation for serious buyers
You define the brief. Joel does the searching, makes the approaches, and negotiates on your behalf. The commission structure is agreed upfront and you are the client throughout.
Discuss buyer's agencyBuying a business in New Zealand
Not seeing what you are looking for?
New listings come to market regularly and not all are advertised immediately. If you have a clear idea of what you are looking for, registering your interest means Joel can contact you when a suitable business becomes available.
The more specific you can be about your requirements, the more useful the registration. Industry, size, location, and your readiness to move all help narrow things down.
There is no obligation and no cost. Joel will be in touch personally if something suitable comes up.
Register your interest
Tell Joel what you are looking for and he will be in touch when something suitable comes up.
Interest registered
Joel will be in touch personally when a business matching your requirements becomes available.
Ready to take the next step?
View current listings on the Barker Business website or get in touch directly to discuss what you are looking for.