Finding the Right Business to Buy

by Richard O'Brien Business Sales listing specialist

Over working for someone else and want to be your own boss but you’re not sure where to start? Perhaps you have an idea or are searching the business for sale listings online, waiting for that ideal business to pop-up?

Making the move and starting or buying a business takes courage, so when searching for a business to buy make sure it is something that you will enjoy and can get passionate about. Secondly, ensure you have some of the necessary skills to add value to the business - some skills can be learnt on the job or imported, but having some skills in the industry will really help.

And lastly ensure it will provide the lifestyle you want. You may need a certain income to pay down business loans, a mortgage, and provide for a family or a certain level of lifestyle.

Contact key brokers who operate in your area of interest. Regularly check what’s on offer on key internet sites like www.nzbizbuysell.co.nz. If you are seeking something specific, then get to know the appropriate associations and let them know you are interested in buying a business. Look to advertise for what you want - ask your accountant or anyone else who may have contact with potential business sellers? Be patient - the path to identifying the right business can take time.

Contact a Business Broker - Business brokers are often used in selling business; they will be happy to discuss your needs as a buyer as will know of other opportunities or businesses that maybe about to come onto the market. Some specialise in particular areas and will be able to offer industry advice and suggestions. Remember that the broker works for the seller, and that the better the sale price, the better their commission. Talk to several brokers to gain a complete picture on what’s on offer in your area of interest. No one broker will hold all the options.

Check the Internet - Go online and search key Business for Sale NZ websites. These are often content rich with good descriptive ads of what’s on offer; usually you can search by the business type, location and price range. Then “save your search” so any new listings that meet your criteria get emailed direct to your inbox. Most sites will also have additional resources to help you understand the process and provide articles to help you on your journey. You can also find a broker on the NZ Business Broker Directory and call one and ask them if they have any other listings.

Print Media - There are a few publications that still list some businesses for sale. Trade journals and industry magazines will sometimes have a section on business opportunities.

Find out exactly what they are selling, about the market and industry, the opportunity, why they are selling and the asking price. Do your homework and alwaays seek professional advice before you purchase any business.

Have your criteria, be prepared, and have a list of key questions ready (see our 10 questions to ask before you buy a business).