BUSINESS + PROPERTY + MARKETING KNOWLEDGE = A BETTER OUTCOME
With nearly 40 years of commercial property, economic development and SME business experience in New Zealand and abroad, we offer business owners insightful professional knowledge which we can apply across a range of business sectors.
Our Director of Business Agency services, Nigel Mayson, has operated his own consultancy for over 23 years and has acquired a reputation as a forward-thinking advisor and for taking on difficult challenges. In the property sector, he has worked in London, Sydney and New Zealand with publicly listed companies and both international and boutique agencies and he was previously Chief Executive of a specialist agri-sector and infrastructure valuation firm. He has written two property marketing books — both focused on helping owners achieve a better outcome from the sale of their real estate assets. In addition to his property related work, Nigel has been Executive Director of a Crown economic development entity mandated with providing advice to Government in relation to major events — including the America’s Cup, Olympic Winter Games, Commonwealth Games and APEC. He also has SME business advisory experience in the tourism, ICT, bio-tech and niche manufacturing sectors.
Nigel has a Master of Business Administration (MBA) Degree with Distinction and a Diploma in Valuation and is an Associate of the Real Estate Institute of New Zealand Inc. and a Licensed Agent under the Real Estate Agents Act 2008. He offers a valuable balance of property and business skills and experience for owners wishing to package-up and sell their business.
Valuing your business
The main methods used to value company shares are the asset accumulation approach, the income approach (of which there are a number of techniques) and the market based approach (i.e. comparable sales and heuristics). The most appropriate technique can depend on many factors unique to the business — including the motivation of the buyer and the scale of the operation. For example, if the business is actively managed by an owner and employs less than 20 people and falls into the small-to-medium-size-enterprise (SME) category that applies to about 97% of all New Zealand businesses, then a multiple of seller’s discretionary cash (or SDC) approach, plus the value of any tangible assets, may be most appropriate.
Assessing value is both an iterative and subjective process and ultimately any prospective buyer will form a view based on their own investigations and independent professional advice. Your financial advisors will be invaluable in helping you to rationalise and determine the individual components of business value and most appropriate valuation approach. To support the business sale process, we recommend that a formal business valuation is commissioned from an independent expert.
PREPARING YOUR BUSINESS FOR SALE
You should give careful consideration to ways of maximising business profitability before you commence the sale process. Endeavouring to initiate business enhancement initiatives during the sale process means you have missed your best opportunity to enhance the sale outcome. Ideally you will have been investigating and implementing cost and working capital reduction opportunities, operational efficiencies, monetisation of under-utilised or non-core assets, customer diversification strategies and business system improvements etc., well in advance of your decision to sell the business.
The password to our guide ‘Prepare your business for sale‘ in the Resources section of this website will be made available to our clients by calling Nigel Mayson.
OUR VERY FAIR FEE
Our fee for the sale of a going concern business is a fixed 5% plus GST of the price paid for the business (with a minimum fee of $15,000 plus GST). If there is also a freehold property component to the transaction, then our fee on that portion of the price paid is a fixed 2% plus GST (with a minimum fee of $14,000 plus GST). That’s it. Fair and transparent.