ABC BUSINESS

WELCOME

Hi,

MARKETING INVESTMENT ACHIEVES PREMIUM RESULT

Another recent sale through our Christchurch office highlighted the value of a quality marketing strategy.

We were approached by a business owner who had received an unsolicited offer from a private buyer. The business was ‘not officially on the market’ however he wanted confirmation that the price, which he was quite happy to accept, was fair. On analysis, we thought that the offer was too low and reminded him that very few people even knew his business was for sale. We suggested that, if he was serious about getting the best result possible, an investment in a proven marketing program would produce more buyers and a higher sale price. He took our advice and in less than 5 weeks we presented him with three offers, one of which was unconditional, and all were at the full asking price – a whopping 33% more than he originally expected!

His investment in marketing paid huge dividends and left him in no doubt that he’d optimised his sale price. This was a business that sold for under $200,000 and is further evidence that the sale of any size business will benefit from a quality marketing strategy.

Talk to us today for advice on how to get the best price for the sale of your business.

Regards,

Steve Smith AREINZ
MANAGING DIRECTOR

WELLINGTON HOSPITALITY VENUES

Two Excellent Locations

Well proven operation. Established over 10 years with excellent brand exposure and stable history. Quality leases in place with realistic rent. Well proven operational system together with development in the area ensures continued growth and profitability of the business.

Current turnover exceeds $3.17 million with profit of over $500,000. This well managed business is on the market to be sold with a realistic asking price of $1.65 million plus stock. The current management will work with the new owner to ensure a seamless transition.

Asking $1.65 Million Plus Stock

To find out more, please contact John Fairbairn 04 499 1538, 021 980 942

Click here to learn more.

BUSINESS SELLING TIPS

When is the Best Time to Sell a Business?

The answer is never quite straightforward.

Obviously the best time to sell is when you don’t need to sell.

The next best time to sell your business is just before it reaches its peak. It can be hard to tell when this will be, but astute operators know that every small business has peaks and troughs caused by market conditions, the owner’s own limitations, changes in technology, etc.

All we can say is – don’t wait too long. You also should know when the business is stagnating or has a risk of doing so. If you feel you can do no better, or you have run out of ideas, or lost interest then it’s time to consider the exit path. Don’t wait for the tide to turn – anticipate it.

Ideally your exit should be planned years ahead and every business owner should be in the simultaneous processes of both building the business and planning the exit.

As far as timing the actual placing on the market is concerned, consider that it is probably better to start advertising well before you come into a period of traditionally good sales rather than into a period of low sales. This gives a buyer much more confidence and will help increase your sale price. A business with an improved turnover looks more attractive to a buyer since the improved turnover will help them through the early months. If there are good sales to anticipate in the first month, a buyer will feel confident that the business will get off to a good start by virtue of that early strength. Confidence reduces risk and enhances business price.

Once you have decided to sell the business, there is an obligation on you to continue to run the business as normal up to until the time of hand over.

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