Businessbroker The authority on buying and selling businesses - AUG - NOV 2014
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Businessbroker
The authority on buying and selling businesses
AUG - NOV 2014
Run and operate a small business from
the comfort of your favourite armchair
NZ $6.50 AUS $5.50 INC GST
The authority on selling businesses
There’s advice, then there’s expert advice.
There’s a lot to think about when you start a new business. That’s why we’ve got more
local business bankers with the expertise to help your business succeed.
Visit anz.co.nz/startup to find a business banker near you.
0800 269 249 visit any branch
ANZ Bank New Zealand Limited ANZ1935/LINK
8 10
13 16 18
4 From the Director Aaron Toresen 12 A Passion For Education Can Open The
Door To Your Own Business
5 What A Great Time To Sell Your Business Tony Andrew, LINK Auckland - Ellerslie
Richard Ridler, LINK Auckland - Ellerslie
13 The Secret
6 Buying A Business Basket Case Ivan Tava, LINK Auckland - Wairau Valley
Chris Bryant, LINK Chistchurch & South Island
14 Demand For Homebased Businesses
7 Selling A Childcare Centre - Lisa Lloyd, LINK Bay of Plenty & Waikato
Role Of A Business Broker
Pra Jain, LINK Auckland - Ellerslie 15 St John First Aid Training
8 Organising Your Business For Sale 16 Leadership In Health And Safety -
One Life At A Time
10 Why Have Terms Of Trade? Craig Garner, EMA
Harshad Shiba, Stewart Germann Law Office
18 Business Opportunities
linkbusiness.co.nz 0800 546 528 3
EDITOR
Jenny Holden
Aaron Toresen is the Managing Director of the LINK Group
throughout New Zealand, Australia, South Africa and the United
States through a successful franchise network. Competitive and
solutions focused, he is also acutely aware of the value of long term
DESIGNER
Carla Watson THE TEAM
relationships in business.
CONTRIBUTORS
If you would like to join LINK visit linkbusiness.co.nz
Aaron Toresen, Chris Bryant, Harshad
Shiba, Richard Ridler, Ivan Tava, Lisa Lloyd,
Pra Jain, Tony Andrew, Craig Garner
WELCOME From the Director
Business Broker Magazine is published by
LINK BUSINESS FRANCHISING LTD.
Some images shown are for illustration
purposes only and are not necessarily
Spring is on its way! Winter might have us in its For those of you considering buying a business, examples of the business’ products or
grips at the moment, and I may have poured ensure you are organised with finance in place and services.
hotwater on my windscreen this morning, be prepared to compete to buy a good business.
however, by the time you read this daffodils will You will need to be decisive and confident, as
be bursting to life and lambs will fill the paddocks. good businesses are selling fast and attracting ADVERTISING
It’s comforting to know that winter doesn’t last multiple buyers. If you wish to advertise in this
forever, and this fact allows us to enjoy the cold Whatever your situation, if it comes to buying or magazine please contact
evenings in front of a fire (and drinking red wine selling a business – contact a LINK broker today. Jenny Holden +64 9 555 6052 /
seems even more appropriate than usual). And And remember that it is you that decides when the jennymh@linkbusiness.co.nz
just like the passing of winter, business owners seasons change.
tend to have their own inimitable seasons. We are
LINK is proud to have recently become a St John HEAD OFFICE CONTACT DETAILS
finding that more than ever before New Zealand
Business Supporter. This sponsorship will make a Link Business Franchising Ltd
business owners are preparing for their retirement
difference to St John in the local community and Level 1, 401 Great South Road, Ellerslie,
(or change of lifestyle) and selling their business
in particular help with their programme which Auckland 1061, New Zealand.
is a pivotal moment in this transition. Often
teaches young people about first aid, health care Ph: +64 9 555 6007, Fax: +64 9 525 1457
there is a significant amount of capital tied up
and builds leadership skills.
in the business, and so it is with the sale that the
opportunity is unlocked to change pace and enjoy Congratulations to St John, who were voted LINK NEW ZEALAND
the fruits of many years labour. LINK is very proud New Zealand’s Most Trusted Charity in the recent linkbusiness.co.nz
of the fact that more business owners choose to Reader’s Digest Most Trusted Brands Awards. LINK AUSTRALIA
have us represent them at this important time Read about First Aid Training in the St John article linkbusiness.com.au
of change, than does any other brokerage in NZ. on Page 15. LINK SOUTH AFRICA
If you are considering your options and selling
linkbusiness.co.za
your business is part of that process, please talk
in total confidence to a LINK broker. We can help Sincerely, LINK UNITED STATES
you establish an asking price for the business, help linkbusiness.com
with some suggestions to improve its saleability
and take care of the process, while you continue DISCLAIMER
to do what you do best – run your business. With
The contents of Business Broker are copyright
the number of buyers competing in the market Aaron Toresen of LINK BUSINESS FRANCHISING LTD. Any
currently, it is a superb time to sell. And who knows,
this may simply be another passing season. So act
Managing Director reproduction without prior permission is strictly
prohibited. Although information in Business
now and enjoy the fact that the time is perfect to
Broker has been derived from sources believed
sell your business.
to be reliable and accurate, no liability is
accepted for any opinions expressed or for any
error or omissions. This includes material which
may be inserted into the publication.
4 linkbusiness.co.nz 0800 546 528
The NZ economy is arguably as strong as it has ever been over the last 30
years and with signs of this strength continuing into the next few years.
There is very strong buyer demand for quality businesses with good trading
histories from all areas of business activity.
Present legislation suggests that no longer is it practical for business owners
to satisfactorily sell their own businesses. A truly professional approach by a
qualified and experienced business broker is required to properly protect all
parties from the raft of legal and financial constraints and risks.
LINK is a well-recognised, respected and professional international business
brokerage with a team of qualified and experienced business brokers
throughout NZ. We will have a broker who will have experience in, and a full
understanding of, your business.
As a brokerage LINK handles hundreds of transactions each year leading to
a great outcome for both the vendor and the purchaser. We have sold over a
billion dollars worth of businesses throughout New Zealand.
Since its inception in 1996 LINK has built New Zealand’s top business broking
company on the basis of a team of high quality, qualified and experienced
brokers throughout New Zealand. Recently the company has opened several
offices throughout Australia, South Africa and the United States.
LINK has an experienced broker to look after the needs of any seller and with
its international contacts can source buyers from all over the world as well as,
Business owners who
of course, from within NZ. choose to instruct
Business brokers are a group of qualified professionals who can and will
maximise the business owners return whilst minimising any risk.
LINK exclusively and
While recognising the need for business owners to protect themselves from invest in a marketing
potential litigation and other problems the broker from LINK will advise you
on preparing your business for sale and provide an educated opinion on the plan increase their
likely value of the business. chance of selling by
LINK will produce a detailed information memorandum on your business and
initiate and manage a suitable marketing campaign. over 350%**
Additionally your LINK broker will identify, interview and qualify suitable
purchasers, manage the sale process and ensure all documentation meets
the needs of the transaction and its legal requirements.
Once the sale is made he/she will assist with advice and management through ARTICLE WRITTEN BY
the due diligence and other conditions and assist with the process through to Richard Ridler - Corporate Business Broker
settlement and handover. at LINK Auckland - Ellerslie
During all this you can focus on properly running your business rather than P: 09 555 6043 M : 021 904 672
focussing on an area that will be strange and time consuming for you. E: richardr@linkcorporate.co.nz
** Based on our extensive Sales Data over a 6 year period, as compared to non-exclusive Level 1, 401 Great South Road,
instructions without a marketing investment. Ellerslie, Auckland
linkbusiness.co.nz 0800 546 528 5
Buying A Business Basket Case
Looking through Google “basket case” is invariably defined as “one that is in a That’s it! Easy – hatch a plan – but does a buyer call a consultant to write
completely hopeless or useless condition” Nice! the plan? Well assistance is important. However, advice or not, the owner
Is there a recommendation then for buying a basket case–of–a-business? How is beholden to take ownership of the plan and this cannot be delegated.
does a buyer decide this business is a basket case? What are the grounds? Delegating a business plan in small business is akin to washing ones hands
Given business is mostly about making profit, no or low profit becomes the of the responsibility of management. The owner needs to take charge, action
benchmark for sticking the accounts to the mast head relabelled “basket the tasks set for him/her while maintaining an eye on progress towards their
case”. Yes, the accounts trudged out year after year to determine tax liability goals. No other professional engaged as a service supplier can replace the
are invariably the chief source of a buyer deciding “basket case” and saying need for the owner to take responsibility for the planning and subsequent
NO, this is a bad or a very bad proposition. And so the buyer closes the file management of the business.
shut - tight. Now the buyer has acknowledged the need for a plan - is this the endpoint?
So what’s missing here? Nothing according to the buyer – “the business No – while recognising the critical need to have a written plan with owner-
doesn’t perform and I’m folding my arms on it because it’s a basket case. Next dependent accountability there is another related evaluation – a self-
offering please!” But the buyer is missing something – actually a great deal. evaluation. In the very first phase of this assessment process the buyer who
has looked at the offering for sale needs also to thoroughly look at him or
Small business is owner/buyer input dependent. In small business the owner
herself. As reflected earlier the owner is the brains trust of the business. This
is the “brains trust” of the business, as well as its financier. I will define small
means they will also need to assess themselves in a critical (not criticising)
business here as having a value of under one million dollars and towards the
light. This is the buyer reflecting on what they will bring to the table in terms
lower end will chime in with very small. So many buyers and sellers qualify
of experience and qualifications as applicable, added value input that may
here.
be missing, capital, new resources, and the softer qualities like vision, energy,
A buyer on the look-out for a new vocation needs to action a business plan passion, and commitment. Would-be buyers may overlook making a proper
for any business they peruse/invest in regardless of trading status. To do this assessment of what personal value they can offer, and connecting with what
will require the new owner to use information on offer to write up their own is actually needed by the business from them.
future. It is the future that is important to the buyer and so it is a well detailed
The two points are - along with the business plan buyers shall “heed the need”
business plan that is the key to their success. What went before is just that –
to make sure they do hold the intrinsic personal qualities to bring to the table
historical. Many buyers have a perception that they will pay over their money
when perusing a business, lest they too turn a profitable going concern into
(or someone else’s) for a “good” business and it will continue to pay out the
a basket case!
profits. Alas this perception can be far from reality. The opposite is also true – a
buyer can invest in a basket case, action a plan, revive the business and then
succeed through their own judicious efforts. A well thought out and executed
(terrible word) business plan is the heart of any business – small or large.
This page is not about how to write a business plan – it is about the buyer ARTICLE WRITTEN BY
acknowledging the need to write it up and action it from day zero. A valuable Chris Bryant - Principal of LINK Christchurch & South Island
function of the out-going owner for a buyer is to provide input into the new P: 03 928 1945 M : 027 228 5688 E: chrisb@linkbusiness.co.nz
owner’s PLAN. With no written plan the hand on the tiller is not a steady one! 131 Deans Ave, Riccarton, Christchurch
6 linkbusiness.co.nz 0800 546 528
Selling a Childcare Centre - Role of a Business Broker
BUYING OR SELLING A BUSINESS IS A BIG DECISION. intermediaries and ensure every prospective buyer is carefully vetted and has
Market feedback and experience has indicated that lots of business owners signed a full disclosure Confidentiality Agreement, before identifying your
do not know: business
Who are business brokers? What do they do? How do they differ from real Statistics show that a significant numbers of all business sales fail during the
estate agents? What role can they play is assisting you to sell your ECE centre? due diligence process. Business brokers work right throughout the selling
process, managing issues as they arise and facilitating negotiations to smooth
Business Brokers are specialists in selling businesses and are different from
the way to a successful sale. Because business brokers are intermediaries
other real estate sales persons. The most important point of difference
they can gain the confidence of a buyer, which allows the buyer feel more
being that the sale of most businesses is confidential. Which include several
comfortable. Brokers may have pre-qualified buyers from a database and
sectors / categories of businesses such as hospitality, retail, manufacturing,
may not even need to advertise your business. These buyers would have built
engineering, transportation and the education-childcare industry. Business
up a good working relationship and trust with the broker.
brokers are often specialists in selling businesses in one or more fields. The
main goal of a business owner is to run their business as efficiently as possible SELLING A BUSINESS COULD BE BOTH AN ART AND SCIENCE.
and achieve the point of earning maximum profit. Business brokers work for The ART when it comes to selling a business is 3 P’s i.e. Pricing, Preparation
business owners in achieving the best deal for them when they want to sell. (not only visual presentation of the business but also numbers in balance
In simplified terms market value is governed by a willing buyer + willing sheet or profit & loss accounts) and Promotion to prospective buyers.
seller = successful sale. However, on occasion because business brokers have The SCIENCE is in appraisal/ valuing for marketing. It requires considerable
specialised industry knowledge & have been able to achieve prices which experience, skills and most importantly market knowledge. Business valuation
are even higher than the seller’s initial asking price. Recently sales have been is a complex process which takes into account numbers of” weighting factors”
completed with multiple offers being presented to owners, giving them a for that sector. An experienced business broker would consider business
choice of who will take over the ownership and management of their centre. weighing factors such as: type of business, likely buyers demand, competition,
HOW CAN BUSINESS BROKERS HELP YOU? industry growth, income risk and location.
Nobody likes surprises out of the blue - especially when buying or selling a Childcare centres are highly desirable for buyers as each centre has the
business. Business brokers can assess the key factors in your business. They comfort of receiving a high proportion of income from government subsidies.
can help you to be aware of the important issues. You will feel comfortable They operate only 5 days per week and offer good return on investment (ROI)
and informed throughout the selling process. Business brokers market compared to other types of businesses.
and sell businesses every day and will be able to guide you through the SELLING OF ECE COULD BE DONE IN TWO WAYS:
whole process of selling, including the preparations of a sale and purchase An owner thinks that he/she can handle the sale of his/her business quite
agreement, saving you legal costs. well. These owners must ensure that they possess the knowledge as to how
As all childcare centres are different, there are many different ways to assess to obtain best price, recognise genuine buyers and keep the deal confidential.
the value / sale price that a prospective buyer will pay. An experienced Secondly the owner may decide to have the intermediary be involved in the
business broker will have the market knowledge to give you a fair market business deal i.e. use a childcare business broker and have peace of mind that
appraisal. the transaction will be managed efficiently in a confidential and professional
Although most accountants can assist in providing a pre- assessment value, manner.
this is not a true valuation from a selling point of view but an indicative value. This article is written by Pra Jain, who has with over 20 years of business selling
An experienced business broker would have specialised industry knowledge experience. If you are thinking of selling or want to find out more contact in
for the benefit of a prospective seller. full confidence.
Business brokers work with the buyer’s advisors (solicitors, accountants etc.)
to help you move smoothly through the sale process. You can do what you are
best in doing – continuing to run your business in the best way possible while
brokers take care of marketing / selling which saves you money in getting the
maximum benefit from the transaction.
ARTICLE WRITTEN BY
Pra Jain - Business Broker at LINK Auckland, Ellerslie
Most businesses have commercially sensitive information which must be M: 027 279 4652 P: 09 555 6091 E: praj@linkbusiness.co.nz
guarded from staff, customers, and competitors. Business brokers act as Level 1, 401 Great South Road, Ellerslie, Auckland
linkbusiness.co.nz 0800 546 528 7
Organising Your
Business For Sale
When preparing your business for sale it’s important to plan well and What kind of person would be interested in your
consider who your potential buyer will be. Thinking from the buyer’s business? Will you be able to find them locally or have to
perspective can be helpful when selling. advertise elsewhere?
It’s important to start organising your business for sale as early as possible. A potential buyer needs correct and comprehensive
Business owners often think about selling during a downward trend though information to make an informed decision on whether
the best time to sell is when your business is in good shape. If you plan ahead, your business is suitable for them. You can help this
you’ll be more ready when the time comes. process by understanding who your potential buyer is,
Decide whether you’ll continue to help the business through its transition. and what they may want to know about your business.
Consider whether you need to sell by a certain date, for a minimum price or
prefer to wait for a higher price. Questions that buyers may ask include:
• What makes your business unique?
It’s important to get expert advice from your lawyer, • How profitable is your business in good and bad times?
accountant and broker. Talk to your lawyer as they can
• What has been the annual increase in sales?
protect any trade secrets by writing up a confidentiality
agreement. This will help safeguard your intellectual • What are the levels of stock and investment required in the foreseeable
property (IP). future?
Your accountant can help calculate your business’s
goodwill, give advice to determine the optimal price It’s likely that potential buyers will want to view at least three years of financial
to sell, and make sure that your financial records are organised. By providing statements, including income statements and balance sheets. They’ll be
accurate sales figures, you’ll reduce the element of risk for potential buyers. buying into your business’s profitability so you’ll need to identify any non-
Hiring a broker will assist to smooth negotiations with prospective buyers, operating expenses like interest.
can help keep your identity confidential so suppliers and customers don’t get
concerned, and will allow you to focus on running your business while they
look for buyers.
Ask your experts to note any weaknesses they see in your business. Address
any problems by doing your own due diligence before offering your business
for sale.
8 linkbusiness.co.nz 0800 546 528
Potential buyers are searching for businesses that are Each potential buyer has some key conditions they need
in top working order. It’s critical you work through a met, to be persuaded that your business is the one for
process of getting every aspect of your business in the them.
best possible shape to attract the right buyer. Make sure Make a great first impression when buyers come to see
you: your business. Your premises should be immaculate and
• Tidy your financial records – taxes should be paid and orderly. Friendly staff and lively activity will help project a
any debts to Inland Revenue should be settled. place of efficient work.
• Have optimal levels of staff and inventory – which shows your business If a potential buyer asks for more information, make it available quickly and
operates efficiently. guarantee its accuracy. Demonstrating how sharp your internal processes are,
• Tighten control over debtors – you want them paying on time, or early will show buyers that your business is functioning capably.
if possible, to help show that the business’s cash flow is under control. One question a buyer might ask is your reason for selling – have an honest
• Resolve any legal issues – a new owner doesn’t want to walk in on any response that doesn’t suggest the need for urgency.
legal problems. They’ll probably also be interested in your relationships with customers and
• Replace or repair faulty fixed assets. suppliers. Buyers will be aware that there’s a risk of customers leaving after you
sell. You’ll need to reassure them that your customers are loyal to the business
• Have set processes – a potential buyer will want to see clearly defined
rather than just to you.
processes for daily operations.
If you run a service business, speak to your most valued customers about
what they want improved and what they like about your business. Don’t Create an action plan for any weaknesses in your
assume you already know. Use this information to enhance certain features of business that you want to try to resolve. Outline the steps
service to your customers. Keeping them content may be a useful bargaining you’ll take, timeline you’ll follow and resources you’ll
tool with potential buyers. allocate. Then assign tasks to gain improvements before
advertising your business for sale.
Potential buyers might feel locked into a direction they
After gaining some expert advice, figuring out who’ll
don’t want to take if you’ve invested in long term projects.
potentially buy your business, and getting your business
Cut back to short term spending to reduce the financial
in the best shape possible, there are a few questions you
burden on whoever acquires your business. Be realistic when providing for
need to answer:
bad debt, old stock and depreciation amounts.
• Do you have to sell by a certain date?
Buyers prefer low risk with high reward when they consider investing in
• Will you take your business to auction? a small business. Ultimately, buyers will look for good cash flow and solid
• What price range will you be satisfied with? systems with the potential for further growth. They want to make money so
get your financial position in excellent shape.
• Will you still work in your business in some form to help with the
transition?
If you are thinking about exiting your business,
our ANZ Business Bankers can help you through
the sale process. To find your local ANZ Business
Banker, visit anz.co.nz/businessbanker or call us on
0800 269 249.
Disclaimer: This material is provided as a complimentary service of ANZ, part of ANZ
Bank New Zealand Limited (“bank”). It is prepared based on information and sources the
bank believes to be reliable. It is subject to change and is not a substitute for commercial
judgement or professional advice, which should be sought prior to acting in reliance
on it. To the extent permitted by law the bank disclaims liability or responsibility to any
person for any direct or indirect loss or damage that may result from any act or omission
by any person in relation to the material.
Have optimal levels of This material is for information purposes only. Its content is intended to be of a
general nature, does not take into account your financial situation or goals, and is
staff and inventory – which not a personalised financial adviser service under the Financial Advisers Act 2008. It is
shows your business recommended you seek advice from a financial adviser which takes into account your
individual circumstances before you acquire a financial product. If you wish to consult an
operates efficiently. ANZ Business Banking Manager, please contact us on 0800 269 249.
linkbusiness.co.nz 0800 546 528 9
You’ll no doubt be familiar with terms of trade. We see them • Who should bear the risk in the products and until when (e.g. when
wherever business is undertaken: at the mechanic; the hotel; they are put on the truck, when they are received, when they are paid
the doctor. They are especially prevalent in business to business for);
transactions such as wholesale and retail relationships and • The warranties (if any) you are giving in respect to what you’re
professional relationships. supplying;
But why do we have them, what should they contain and should • What happens if a product you supply is faulty;
you have one?
• What legislation the parties agree will not apply to their relationship
(e.g aspects of the Fair Trading Act 1986, the Sale of Goods Act 1908
WHY HAVE TERMS OF TRADE? and, if a business to business transaction, the Consumer Guarantees
People litigate when the terms of their contract are unclear or uncertain Act 1993);
and a dispute arises as a result. • Your privacy policy setting out what your rights are in respect to the
The objective of having terms of trade is to clearly set out the basis upon personal information that the customer provides to you;
which one party will do business with another with the intention of • What will happen in the event of a dispute (will you go to straight to
mitigating any potential for a disagreement on any matter relating to that Court, mediation or perhaps arbitration?).
relationship in the future.
It’s up front, honest and direct – customers will know how you conduct SHOULD YOU HAVE TERMS OF TRADE?
your business.
If you’re in business, then quite simply, yes.
While you cannot contract out of legislation in place to protect private
Not only are terms of trade a transparent way of conducting yourself with
consumers, you can contract out of some parts of legislation in a business
your customer base, they also mitigate against unnecessary and time
to business situation (such as the Fair Trading Act 1986 and the Sale of
consuming disputes that often arise in the absence of them. If someone
Goods Act 1908). As the provisions of such legislation protect the buyer,
challenges you on a matter and you’ve got well drafted terms of trade, you
if you’re the seller, it may be in your best interests to make clear that
can simply point to the relevant term that evidences their agreement to
selective provisions of certain legislation don’t apply.
that policy at the outset.
Our world is digital and we collect email addresses and other information
WHAT SHOULD BE IN TERMS OF TRADE? from customers to communicate with them directly or to market to them.
It goes without saying that if you’re a barber, you’re going to have quite It is not sufficient to say we will deal with your personal information in a
different terms than that of a wholesale vacuum supplier. So, your terms manner we see fit like many out of date terms of trade provide. Customers
of trade have to be specific for your business. want to know what you will use their information for, who you will disclose
Here is a general idea of what your terms of trade should contain at a it to, how they can update it and how they can have it deleted from your
minimum: records.
• When offer and acceptance takes place (this is a critical legal element
in any contract); Your terms of trade should be available on your website, at your place of
• How price is determined (you may quote first for example) and when business and on all order forms and invoices.
payment is to be made; We offer fixed prices for drafting terms of trade – contact us today!
• The security you take during the time that you have money owed to
you (if you’ve sold goods, you’ll want to retain an interest in those
goods until they are paid for and that would require the granting of a
security interest under the Personal Property and Securities Act 1999); ARTICLE WRITTEN BY
• The consequences of non-payment or otherwise of non-observance Harshad Shiba - Associate at Stewart Germann Law Office
of your terms (you may be an electrician who gets called to a house P: 09 308 9925 E: harshad@germann.co.nz W: www.germann.co.nz
3 times and each time no one is there to receive you – you would Ground Floor, Princes Court, 2 Princes Street, Auckland
probably want to charge for your wasted time);
10 linkbusiness.co.nz 0800 546 528Are you searching for
commercial and franchise
law specialists?
SGL
STEWART GERMANN LAW OFFICE
SGL Lawyers have If you want:
looked at thousands
of commercial and • Experienced Business Lawyers
franchise agreements • NZ and International reputation
and act for franchisors, Contact:
franchisees and
• Specialist Franchise Skills
Stewart Germann Law
commercial operators • A proven track record Office
nationwide. • Outstanding References www.germann.co.nz
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We are passionate about Business and Franchising
CALL US NOW 09 308-9925It’s accepted that education professionals contribute their skills at high and in centre operations. There is a growth path plan so that additional
level. However, they seldom come across the opportunity to apply their centres may be opened within the territory as demand builds. Head Office
valuable experience and training to their own business. Respected and long- also provides support for the identification and negotiation of lease terms for
established, market leading tutorial services providers, Kip McGrath recognise suitable premises. Kip McGrath Education Centres are considered to be high
that by structuring their education centre businesses so that owner/teachers quality tenants.
are relieved of the vast majority of administration and clerical work required The Kip McGrath organisation works innovatively in educational software
to run a business. They can concentrate on their primary role which is to teach. development. Sophisticated, easy to implement and manage systems add to
‘What’s made the Kip McGrath organisation effective in the tutorial services the efficiency and accessibility of the tutorial programmes. Computer system
field is customer satisfaction,’ says Link Business Broker, Tony Andrew. ‘That’s leases and centre fit out packages are managed by Head Office and make
satisfaction of both students and their parents. And that goes back to the establishment of centres a simple and cost efficient process.
quality of teacher input’. Territory rights are available for purchase in a number of locations throughout
The Kip McGrath organisation says, ‘While the primary focus is to improve or New Zealand. The rights are for five years with right of renewal for a further
extend a child’s learning outcomes, the real value in attending a Kip McGrath five years. (An administration fee of $7,50 (plus GST) is applied at time of
Education Centre is the teachers that tutor at each centre. For our tutors, renewal).
teaching is not a job, it is a vocation’. Applicants need to either hold
The first Kip McGrath Education Centre opened its doors in Newcastle, NSW a teaching registration and a
36 years ago. Founded by school teachers, Kip and Dug McGrath, that first current practising certificate
tutoring centre has grown into a global franchise network of 600 tutoring in New Zealand or, employ
centres owned and operated by qualified and experienced teachers with a someone who does.
common motivation: a passion for teaching. The New Zealand driving force Comprehensive training and
is husband and wife franchisor team; Jonathan and Dianne Anderson who support is provided including
started their association with Kip McGrath in New Zealand in 1996. mentoring meetings and visits
Offering tutoring to children from pre-school through to Year 13 in reading, to other centres. New centre
spelling, comprehension, English and maths, there are now 105 tutoring owners receive high quality
centres in New Zealand, Fiji and Samoa. and sustained support as they
Nothing inspires a Kip tutor more than a smile from a child who finally ‘gets it’. develop their businesses. This
To watch a child suddenly start to enjoy learning and develop a confidence in includes assistance with a
their abilities naturally translates into better results at school. comprehensive marketing and
advertising programme.
Each child is assessed according to the National Curriculum and a programme
is written for that child based on their individual needs with periodic progress Kip McGrath Education Centres territory rights are being marketed by Link
reports. Business Brokers. Contact Business Broker, Tony Andrew +64 9 5556035
tonya@linkbusiness.co.nz.
The programmes are suitable for all students ranging from those who may
be experiencing difficulties in their day to day school work, right through to
students who would like to extend their learning and do better.
‘There’s a lot of experience behind both the business management systems
provided to the individual centres and of course, the extremely well-reputed
Kip McGrath tutoring programmes,’ adds Andrew. ARTICLE WRITTEN BY
Tony Andrew - Business Broker at LINK Auckland, Ellerslie
It adds up to a great opportunity for committed teaching professionals to do P: 09 555 6035 M : 021 938 560 E: tonya@linkbusiness.co.nz
what they do best while building value in their own business. Level 1, 401 Great South Road, Ellerslie, Auckland
Kip McGrath Education Centres are franchised. Franchisees operate within
a defined territory and receive support and guidance in acquiring students
12 linkbusiness.co.nz 0800 546 528systems and tools and are not only experienced
but expert in successfully applying the sales and
marketing process outlined. The team at LINK is
such a body.
We have the expertise: LINK brokers include
specialists in a wide variety of industries. Many
have owned and managed businesses themselves
and others have extensive financial, management,
legal and accounting expertise. By combining
these specialist resources, LINK can provide
the most balanced appraisal of your business,
together with a thorough analysis of the most
likely purchasers.
We have the best analytical tools and resources:
LINK has one of the most comprehensive and
sophisticated databases of business sales in the
country. We are also one of the only companies
to conduct regular independent research to
The secret of successfully marketing a might guess, it worked a treat! Customers found determine the motivations of potential buyers and
business, as with anything else is: the whole experience more satisfying, were more identify the key issues that are important to them.
Presenting it to the right audience in a way comfortable and happier giving a gift that they
Our networks and database: LINK maintains one of
that best presents what is of value to them. had perceived more attractive and for which they
the largest databases (in the country) of individuals
had paid more.
The process of valuing and selling a business and organisations looking to buy businesses.
encompasses so much more than simply establishing So, how does this help me achieve the best price Over 60% of businesses listed for sale with LINK
some multiple of a financial ratio to determine a for my business? I can hear you ask. Surely, this are sold to pre-qualified buyers registered on our
price, sticking an advert in the paper and / or online only applies to luxury goods? In the past, I would purchaser database. Overall, most are sold within
and waiting for the enquiries to roll in. have thought so too. That is until having had the three months.
experience of seeing this principle applied to the
The attractiveness and price/perceived value of Confidentiality and integrity: Most businesses have
successful sale of more than one business that was
anything, including a business, can be very elastic commercially sensitive information, which must be
difficult to sell through being pitched at a different
as it all largely depends to whom and how it is guarded from competitors, staff, customers and
audience with a higher price ticket!
presented. suppliers. By acting as intermediaries, we ensure
So then, where to start? My recommendation that every enquiry about your business is carefully
This fact was bought home to me quite early on in is to seek out the advice of a professional who
my business career as the proprietor of a jewellery vetted. Furthermore, no information that could
understands and has experience in successfully identify your business is released to potential
manufacturing business. Leading up to Christmas, applying the principles. They would help you
we would establish a ‘factory shop’ where we purchasers without your approval and until a
assess what your business offers in terms of: Confidentiality Agreement has been signed.
would sell off the masses of samples and clearance
stock we had accumulated during the year. Using 1. Current earnings We work with you every step of the way: It is a fact
conventional logic, we assumed that a lower price 2. Security of future earnings that a significant number of all business sales fail
would make the offering attractive. Far from 3. Uniqueness/points of difference and during the due diligence process. We work with you
it! Despite eye catching banners and effective competitive advantage/s right throughout the process, effectively managing
advertising heralding the fact, we were lucky to issues as they arise and facilitating negotiations to
4. Prospects for improvement and growth
break even. It was only when a friend, who was smooth the way to a successful sale. In this way we
involved in the advertising industry, pointed out: 5. Lifestyle ensure that you are fully conversant with all facets
1. That the majority of jewellery purchases 6. Whatever other metrics might apply in your of the business sales process, and act as a facilitator
especially leading up to Christmas were, of sector between you and potential buyers (and often, their
course, gifts legal and accounting advisors).
2. That presented correctly it was found that the This is why I can proudly, confidently and
Then advise how any of these can best be
attractiveness of jewellery, cosmetics and I unashamedly state that the secret to successfully
improved prior to presenting your business for
suspect, as the French have long discovered, selling your business is to do so through LINK.
sale. Equally, if not more importantly develop a
everything else actually increased, as the strategy that entails:
price went up. Think French perfume or 1. Presenting what your business offers
Champagne!
2. To the audience that most values it ARTICLE WRITTEN BY
3. In a way in which they will most appreciate it. Ivan Tava - Business Broker at LINK Auckland,
The following year we invested in better lighting, Wairau Valley
display cabinets and fit out generally. We also
lifted the quality and calibre of service, gift It stands to reason that this can be most effectively P: 09 442 1821 M : 027 288-8855
wrapped everything attractively and tripled our achieved by a body of professionals who work E: ivant@linkbusiness.co.nz
prices along with our profit margins. As you collaboratively, using the most sophisticated 214 Archers Road, Wairau Valley, Auckland
linkbusiness.co.nz 0800 546 528 13Due to a number of reasons, the demand for
Due to reduced operating costs, there businesses are a web based business like an online
smaller businesses that can be successfully run is more flexibility in pricing structure to directory, or an import and/or distribution type
from home based premises is growing. become more competitive, or alternatively business.
The global financial crisis has taught people reap the benefits on greater margins. Buyers are motivated primarily by income and
to sharpen their business skills and reduce the flipside, the negatives to creating and
On opportunity.
overhead costs to increase profitability. The working from home premises is: invasion of A clean, or sanitised set of accounts from an
savings on leasing premises alone, and the your personal space and sometimes greater accountant should be prepared for selling
tax deductions on home based premises can motivation is required due to the distractions purposes. Discretionary expenses should be
certainly be appealing. of being at home. removed to show a true reflection of associated
Our ever rising fuel costs and increasing Online or web based businesses are of course costs for the running of the business, as with being
travelling times especially in Auckland and the most popular due to the small space that is home based there would have been tax deductible
Wellington, makes working from home required and low operating costs. With regards expenses such as rental cost for office space.
a favourable alternative for many. Other to an online retail store, stock may not even be All operating procedures, suppliers, any details
positives for not travelling to work premises stored on site, and it may be packed and shipped of associated contracts and contacts should be
each day, are the reduced costs of wear and out directly from an offsite storage space. written down – thus get the home based business
tear on a vehicle, and in some cases leased With today’s sophisticated transport and logistics in order before selling.
premises don’t even provide a car park for providers being able to achieve overnight delivery Even service type home based businesses such
the business owner; thus exorbitant parking to the majority of New Zealand’s large towns and as hair stylists and beauty therapy clinics can be
fees are incurred. cities, you can literally run and operate sold and re-located to the new owner’s premises;
a small business from the comfort of however this is limited to demographics. The
your favourite armchair with your assets (equipment and the non-fixed assets are
smart phone 24/7. sold), along with the stock, and database of clients
The internet can open doors to and suppliers. The sale price may not achieve what
a completely new segment of would be for leased premises in a good location,
marketing and promotion of your but could be appealing for someone wanting to
product at minimum cost of resources. work from home also.
The internet allows you to increase Finally, make sure that your home based business,
productivity and sales and at the same is indeed transferable, and offers a genuine
time cutting on daily costs of business. opportunity for the new owner to grow. With a
For marketers of speciality products realistic asking price, and a sound marketing plan,
like rare books, collectables, and satisfying results with ‘a sale’ should be achievable.
gourmet food, a Web-based boutique
lets you reach millions of shoppers
around the world without paying for
rent.
Are home based business sellable? ARTICLE WRITTEN BY
Most certainly they are, in fact they create great Lisa Lloyd - Business Broker at
Flexibility of working hours is an added draw
demand, (as I have sold 4 such businesses within LINK Bay of Plenty & Waikato
card for home based business – perfect
for those juggling young families or other Tauranga, in the last 3 months, with 3 of the 4 P: 0800 225 999
obligations. Accommodating customers being re-located out of Bay of Plenty). Those that M : 027 685 4556
in different time zones around the world, can be relocated to anywhere in the country with E: lisal@linkbusiness.co.nz
becomes more manageable when the office no disruption to the functioning or viability of the 26 Fourth Avenue, Tauranga
is at home. business are most favourable. Examples of such
14 linkbusiness.co.nz 0800 546 528As a responsible employer, it’s important to ensure the safety
of your employees when there’s an accident or emergency.
Other ways your involvement can
Including St John First Aid Training in your workplace health and help St John
safety programme helps you to meet your obligations and show
By choosing a St John First Aid Training course you
employees that you’re concerned about their wellbeing.
are helping support the provision of ambulance and
St John is one of New Zealand’s leading providers of first aid other essential community services.
training and has been teaching first aid to New Zealanders for
more than 125 years.
The St John First Aid Level 1 course is the standard training
Volunteering
recommended for workplace first aid providers. During this one Every year more than 8,000 New Zealanders give
day course students will develop practical skills in an interactive their time and energy to St John as volunteers, they
environment, enabling them to recognise life-threatening even outnumber St John paid employees by three
situations and provide vital assistance until help arrives. This to one. Essential services couldn’t be delivered
course is compliant with Department of Labour and NZQA without volunteers.
requirements and can be held at St John premises throughout
New Zealand, or for larger groups a course can be arranged just Youth Programmes
for you at your premises.
St John runs educational and fun development
Everybody should have some level of first aid ability, because programmes that also provide valuable leadership
accidents and medical emergencies can happen anywhere at skills for under 18 year olds, some even continue
any time. St John offers a full range of courses from basic first their connection and become part of the St John
aid training and industry-specific modules through to advanced crew when they become adults.
resuscitation for hospital employees so that you can choose the
learning experience that best matches your needs.
Visit www.stjohn.org.nz/first-aid to book online or call 0800
Caring Caller
FIRST AID (0800 347 782). St John Caring Caller is a free service that connects
people with a trained St John volunteer who’ll call
regularly for a chat. The people who become callers
are community-minded individuals who understand
the need for care and want to make a difference to
someone’s life.
More information can be found at
www.stjohn.org.nz or 0800 STJOHN (0800 785 646)
linkbusiness.co.nz 0800 546 528 15Leadership in Health and Safety –
ONE LIFE AT A TIME
Someone asked me recently “how many lives have you saved today?” It was
one of those pseudo philosophical throwaway lines meant to reference the
insignificance of our role in the greater scheme of things – yet after some
thoughtful consideration I replied “quite possibly a few.”
As Portfolio Manager in the EMA’s business education department I get to
change people’s lives for the better by
shifting the way they see themselves
and the way they interact in their
environments. I oversee, through
a talented team of facilitators, over
three hundred workshops annually
on the topics of Health and Safety,
Management and Leadership.
These are disciplines that have
significant importance to the quality
and sustainability of any and every
business. Implementation of effective legislation is based on what was introduced across
health and safety programmes literally the Tasman two years ago.
saves lives while effective managers A PCBU, rather than referencing a single individual
and leaders impact their communities refers to the business itself. This includes an
and our economy in ways that cannot employer, corporation, association, partnership,
be fully qualified or quantified. sole trader and certain volunteer organisations.
Since the Pike River disaster, which is now approaching its fourth anniversary, Looking forward, a PCBU must ensure the health and safety of workers,
health and safety in the workplace has been a hot topic of discussion. The customers and visitors by, so far as reasonably practicable, eliminating or
formation of a dedicated government department, WorkSafe New Zealand, minimising risks at the workplace. There are also additional duties for a PCBU
was the first in a raft of recommendations that is ultimately leading to an who: manages or controls a workplace; controls fixtures, fittings or plant at a
entirely new piece of legislation called the Health and Safety in the Workplace workplace; designs, manufactures, imports or supplies plant, substances or
Act - currently in draft form and to be passed as law by April 2015. We all structures; and installs, constructs or commissions plant or structures for a
need to pay attentions to this legislation, after all we all likely agreed to the workplace.
terms and conditions of the Health and Safety and Employment Act when we An officer is a person who makes decisions, or participates in making decisions
signed our employment agreement. How many of us have actually read it? that affect the whole, or a substantial part, of a business or undertaking and
Compared to other OECD countries, New Zealand is identified as performing has the capacity to significantly affect the financial standing of the business or
poorly in respect to ensuring our workers go home safe and healthy. The Pike undertaking. If a person is responsible only for implementing those decisions,
River Mine is just one example of a systemic failure in governance, leadership, they are not considered an officer.
management, communication, policies and procedures resulting in our A worker is anyone who carries out work for a PCBU, such as: an employee, a
people being put in harm’s way and not placing safety at the forefront of the contractor or sub-contractor, an employee of a contractor or sub-contractor,
business model. an employee of a labour hire company, an apprentice or trainee, a student
The new legislation and subsequent regulations that will accompany it gaining work experience, an outworker and a volunteer.
replace the current Health and Safety and Employment Act (1992). We are While much of this is yet to be determined we all have a role to play in ensuring
seeing new terminology that includes PCBU (Person Conducting a Business our own safe and healthy environments. At the EMA we are continuously
or Undertaking), Officer and Worker. There will be increased emphasis on developing all our training programmes to ensure we keep pace with new
best practice governance in respect to Health and Safety management ideas, resources and opportunities to teach and to learn how to make our
and monitoring, the role of management in the implementation and businesses and importantly, the people within them, the best they can be.
communication of policies and worker participation in hazard identification
Training at the EMA is available to all levels and sectors of business. This
and controls. The ultimate goal is a national culture of safe workplace practice
includes “Minister Approved’ Health and Safety Representative training,
that extends into our communities and daily lives.
Safety Leadership, National Certificate and Diploma in OHS (Level 6) as well
It is here that the disciplines within my training portfolio are linked - Health and as personal and business development programmes able to be delivered in
Safety, Management and Leadership. In reality not much is going to change public workshop or in-house environments.
from our past workplace safety responsibilities, however, our requirements to
demonstrate we have a companywide continuous improvement procedures,
activity and education will. While discussions are still underway here in New
Zealand as to what the terminology and expectation on business means we ARTICLE WRITTEN BY
can look to Australia for some clarification. Much of the proposed New Zealand Craig Garner - Training Portfolio Manager at EMA
P: 09 367 0907 E: craig.garner@ema.co.nz
16 linkbusiness.co.nz 0800 546 528Build a
booming
LINK Corporate is a division of New Zealand’s largest
business brokerage; LINK. Founded in 1996, LINK has enjoyed
considerable growth since becoming an international network
business
of brokerages. While LINK deals with businesses of all sizes and
from all industries, LINK Corporate specialise only in larger more
significant businesses, typically selling for in excess of $1 million.
Become a licensee
for HRV’s Total Home
Water Filtration System.
Contact an Experienced
LINK Coporate Broker Today
about Planning a Staged Exit
To find out more contact:
RUDY KOKX
09 555 6042 or rudyk@linkbusiness.co.nz
Northland l Auckland l Bay of Plenty & Waikato
$20,000 per exclusive territory
Wellington l Christchurch & South Island
linkbusiness.co.nz 0800 546 528 17Here is a selection of businesses LINK has for sale. For more business opportunities visit linkbusiness.co.nz
CONTENTS
OF BUSINESS OPPORTUNITIES SECTION
19 $1 milion plus businesses
26 Northland
27 Auckland
37 Waikato
39 Coromandel Peninsular
40 Bay of Plenty
42 Hawkes Bay
Manawatu/Wanganui
43 Wellington
44 Nelson, Marlborough & West Coast
45 Christchurch & Canterbury
47 Southern South Island
48 Nationwide
51 Classifieds
THE LINK NETWORK
We have offices with dedicated business sales professionals across New Zealand,
Australia, South Africa and the United States.
LINK New Zealand LINK Australia LINK South Africa
linkbusiness.co.nz linkbusiness.com.au linkbusiness.co.za
Northland (09) 2220120 Sydney +61 (02) 9899 1999 Gauteng
northland@linkbusiness.co.nz sydney@linkbusiness.com.au
Free State
Auckland - Wairau Valley (09) 444 3039 Newcastle +61 (02) 4915 8415
wairauvalley@linkbusiness.co.nz newcastle@linkbusiness.com.au Kwazulu-Natal
Auckland - Ellerslie (09) 579 9226 Sunshine Coast +61 (07) 5452 9802 Eastern Cape
ellerslie@linkbusiness.co.nz sunshinecoast@linkbusiness.com.au Western Cape
Bay of Plenty & Waikato (07) 579 4994 Brisbane +61 (07) 3831 2300
bayofplenty@ linkbusiness.co.nz brisbane@linkbusiness.com.au LINK United States
waikato@linkbusiness.co.nz linkbusiness.com
Gold Coast +61 (07) 5572 2122
Wellington (04) 472 7602 goldcoast@linkbusiness.com.au Los Angeles +1 (310) 539 8300
wellington@linkbusiness.co.nz info@linkbusiness.com
South Australia & Northern Territories
Christchurch & South Island (03) 366 3394 +61 (08) 8334 0600 St. Louis +1 (314) 487 0005
christchurch@linkbusiness.co.nz adelaide@linkbusiness.com.au infostl@linkbusiness.com
San Diego +1 (619) 344 2650
Franchisor Office infosd@linkbusiness.com
LINK Business Franchising Ltd
Level 1, 401 Great South Road, Ellerslie, Auckland
For further LINK Franchising Opportunities please contact Franchise Manager
Kevin Atkinson - kevina@linkbusiness.co.nz
18 linkbusiness.co.nz 0800 546 528Businesses for sale - $1 million plus
The Northerner Hotel - FHGC - 8,514 m2 - $4.25m ref: 17019 Wai Hou Oma - Pure Bliss Lifestyle & Income ref: 16983
The Northerner Hotel in Kaitaia is one of the Here is your chance to purchase freehold
largest accommodation complexes north land & buildings with a profitable business
of the Bay of Islands, with 70+ rooms across component, just metres from the serene Kai
approx. 8,514m2 of land. Total building area is Iwi Lakes.
approx. 3,781m2. This home and income property is a true
The complex features a large reception area, lifestyle opportunity for those seeking a
2 restaurant areas, licensed bar, commercial relaxing environment away from the rush of
kitchen and a conference room. the city. The business will keep you active and
generate a handsome yearly surplus.
Location: Kaitaia, Northland Asking Price: $4,250,000 Location: Dargaville Asking Price: $2,500,000 + GST if any
Broker: Michael Osborne / 027 242 6881 / michaelo@linkbusiness.co.nz Broker: Michael Osborne / 027 242 6881 / michaelo@linkbusiness.co.nz
Roadrunner Tavern - FHGC $1.2m or Lease $380k ref: 17005 A Bankers Dream ref: 15825
1. Freehold Going Concern (FHGC) A golden opportunity to purchase a well-
Priced at $1,250,000 - you’ll be acquiring a 4,337m2 established Directional Underground drilling
block of land with 600m2 of buildings - including business with substantial long term contracts,
wholesale and storage.
high earnings, a strong asset base and on-going
growth opportunities
2. Lease • A unique service related business with
Priced at $380,000 - the business operation includes an engineering bias. Substantial retained
a tavern / bar and an expansive retail liquor store. earnings with high assets and ongoing growth
Annual sales of over $1,200,000 with the potential to opportunities.
grow the business to the thirsty local and tourist driven • Long term forward contracts.
market. • Prime Central Northland.
Location: Paihia Asking Price: $1,200,000 and $380,000 Location: Northland Asking Price: $4,100, 000 plus Stock
Broker: Michael Osborne / 027 242 6881 / michaelo@linkbusiness.co.nz Broker: Clive Derbyshire / 021 946 491 / clived@linkbusiness.co.nz
Education Sector ref: 17446 Semi Managed Import & Manufacturing Business. ref: 17574
Export Potential. $500k+ Profits
Established franchise system with over 36 franchisees in New Zealand This 50 year old Auckland based manufacturer is a specialist provider of
and Australia in a niche part of the Education sector. While the niche solutions into a popular market sector. It can demonstrate a reliable
Franchise System has an excellent footprint in New Zealand dealing history of profits over a number of years yet there remains opportunity to
with around 4000 students in over 200 schools each week there is still improve the business further by increasing sales both in NZ and overseas.
room for growth in New Zealand. Australia currently has franchisees Skilled staff are in place and this semi-managed business is run with part
in Sydney but have proven the model can run effectively overseas so time involvement by its current owners.
there is lots of scope to develop the rest of Australia as well as other The product & service range is sold nationwide. Some exports have been
countries. If you are looking for an established business with proven made and there is potential to grow this further. This opportunity could suit
an experienced business operator with sales, marketing and management
systems and technology but still has plenty of growth potential locally
skills.
and internationally then this business is well worth a look.
The total price of $2.15M is well supported with financial history.
Location: Auckland Asking Price: $1,300,000 Location: Auckland Asking Price: $2,150,000
Broker: Nick Stevens / 021 641 978 / nicks@linkbusiness.co.nz Broker: Bruce Cattell / 021 779 439 / brucec@linkbusiness.co.nz
linkbusiness.co.nz 0800 546 528 19You can also read
