What is the exit plan for you in your business? Are you looking to sell before the next economic down cycle, or transition ownership over the next 10 years?

Our team of advisors help clients to identify and take advantage of the best strategic business sales, mergers and acquisitions opportunities. We provide a highly effective client-led service, ensuring maximum value and delivery.
"The Sale of the Century"

Five thousand medium sized businesses earning between $2.0 and $25m are predicted to be put up for sale according to new research by ASB Bank.

190,000 smaller businesses are expected to be put on the block.

MYOB research suggests only 38% of business owners believe they have a plan to sell including 16% who believe they will sell down to family.

 

33% of business owners expect difficulty in selling.

 

Accounting firm Hayes Knight have estimated the business value transfer to be worth $24b over the next 10 years, and the biggest wave of wealth transfer in NZ history.

 

PWC’s survey of baby boomer business owners predict a similar outcome with over 50% reaching retirement age by 2024.

So the question is where are all the buyers going to come from, and how will they afford these businesses given that the NZ baby boomer population own the majority of the wealth in NZ.

When are you looking to exit and what is your plan?

Download our free business sale ready checklist tool and rank your business readiness. 

"Transaction Versus Transition"

There are a small number of well established broker brands in NZ that sell the main volume of businesses, as well as a number of large accounting and legal firms.

Brokers come under REINZ legislation as licensed real estate agents, and most typically take a transactional approach by listing, marketing and trying to broker a deal after advertising it. 

Unlike houses, 40% of businesses fail to sell, and most do not reach the price expectation of the vendor. The majority of business sales are unplanned with businesses and owners ill-prepared.

Traditional transactional broker led selling has its place, and is great for corner shops, restaurants, franchises and small businesses, however not for medium sized enterprise where value can be achieved through a different approach.

A transition approach contains many more options than listing and brokering a price. For many business owners the risk of openly marketing their business is too great a risk for employees, customers and their supply chain and competitors.

Contact us for a confidential discussion to learn more about how we can support you, and how our approach is vastly different from that of a traditional business broker.

"We all know about Succession"

Succession planning is nothing new as a concept, with NZ accounting firms banging on over the subject for the past 10 years.

However according to PWC most NZ business owners believe their businesses are worth far more than the market will actually pay. 50% of baby boomers are also actually relying on proceeds for retirement plans.

Most business owners fear risking the business by marketing it for sale, and also what life after their business ownership will look like.

The end result many owners have put their heads into the sands and have ignored proactively investing time into a meaningful plan.

MBIE’s (NZ Ministry of Business, Innovation and Enterprise) latest report identifies that business owners that want a successful transition from their business need better support leading to, through and post the sale of their businesses.

The team at MyAdvisor offer extensive succession planning services for business owners, whether they are looking to transition ownership over to family, or are already in that process and finding it difficult, or whether they have no clarity around current options or even timing.

Download our free Lifescape self planning tool, to help you start generating your own options and shaping your own thinking.

Maximising your Business Value
We work with our clients to understand where the value in the business is, and what the most potential options are to maximise the value and realise tangible value through the sale process.
Strategic Trade Sale
Management Buy In / Buy Out

The Management Buy Out process involves either one or a number of existing managers operating in a business under an owner that have sufficient equity in privately owned property to raise funding to purchase either a proportion of shareholding or the whole enterprise in one transaction.

 

We run a process with you and then your managers to explore whether this is a viable opportunity. We also support the managers through the major banks to help support the capital raising and funding process.

 

The management buy in process involves our team working with the directors to scope the right talent for a corporate General Manager role that includes an equity stake. We then source the right person and work with them from an integration point of view over the initial 12 months where typically the equity transaction occurs once the relationship and performance has been proven. 

This is one of our most popular and successful options especially for businesses valued sub $10m in enterprise value.

Corporate Buy Out

No longer the domain between large corporate companies, successful mid sized privately owned firms are being snapped up by corporates as they realise the value of these businesses. The challenge for many of these corporates looking to acquire well run and profitable businesses is actually finding them, and then not scaring them off through their off shore due diligence teams and processes.

In addition typically the corporate purchaser will want to tie the business owner(s) up in a 2-3 year earn out process to mitigate the transition risks and therefore having a good management succession plan will alleviate this problem.

The positive of a corporate buy out is typically funding is no issue, they understand how to truly value business assets and will typically pay a premium in the right structured deal.

We will work through a process with you to understand the value proposition of your business and whether a corporate buy out is a viable option for your business.

A trade sale is where a business is packaged up and sold to another interest either somewhere in it's supply chain being a key supplier/key customer, or to a competitor.

Typically this option achieves a premium realisation in enterprise value as the purchasing party genuinely recognises the value, understands the industry and in many cases is able to create financial synergies through rationalisation and economies of scale.

This option needs careful planning, management and execution, and in most cases the vendor business has required sufficient time to groom the business ready for sale.

Vertical integration and industry rationalisation is a global trend now emerging and common in NZ, including mid sized privately owned firms. 

We will work with you through a process to map out your supply chain and competitor landscape to validate whether this is a viable option.

"Best practice processes that achieve results"
We work with our clients to understand where the value in the business is, and what the most potential options are to maximise the value and realise tangible value through the sale process.

Our process starts with understanding the business and stakeholders through our FutureScape Consultation. This consultation process led by one of our directors is designed for business owners to help gain clarity on the right transition options available for the business and the owner(s). Whether it is a staged sell down of equity over a number of years, a staged transition over to family, a management buy out over a period of time or a full enterprise trade sale in the next 12 to 36 months.

Alignment is created with the owners on the right option by then agreeing a Work Plan for the business and owner(s) upfront that achieves:

       1. Your ideal selling options 

       2. A strategy to maximise business value

       3. Initiatives to mitigate buying risks

       4. A plan for the owners post sale or part sale

We tailor a Work Plan that is right for the client depending on what they want to achieve, how fast they want to achieve and given the level of resource they wish to invest. Our typical period of engagement is 12 - 36 months.

Contact us now for a confidential discussion with one of our directors.

© 2018 MyAdvisor all rights reserved - Business Sales in association with Lochores Real Estate Limited - Licensed Agent (REAA 2008)

Strategy Advisory Services

  • Strategic Planning Processes for Boards and Investors

  • Strategic Planning Processes for Management Teams

  • Brand Strategy Planning and Facilitation

  • Sales Plan Processes and Implementation

  • Brand and Marketing Planning and Implementation

  • Strategy Implementation Services and Reviews

  • Mergers and Acquisition Services

  • Franchise and Licensing Development

  • Investment and Capital Raising Services

 

Growth Advisory Services

  • Financial Reviews

  • Industry Financial and KPI Benchmarking services

  • Salary and Remuneration Policy Development

  • Change Management Services

  • Cost Reduction Analysis

  • Team Restructure and Implementation Services

  • Rationalisation Projects

  • Measurement and Reporting Implementation

  • Team Accountability Implementation Services

  • Leadership Development Programmes

  • Key Man and Human Capital Risk Assessments

 

Deal Advisory Services

  • Succession Options Analysis

  • Business Valuations

  • Strategic Valuations

  • Business Readiness Audit

  • Management Buy Out Process

  • Succession Plan Development

  • Business Exit and Selling Services

  • Management incentive schemes

  • Merger and Acquisition Services