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Frequently Asked Questions

Buying a Business

How do I buy a business in New Zealand?

Define your goals, budget, and industry preferences, be as specific as you can so that you know the perfect business when you see it. A licensed business broker can connect you with vetted listings, guide negotiations, and manage the purchase process guiding you through the unknowns.

Do I need an accountant or lawyer when buying a business?

Yes. Professional legal and accounting advice is recommended before entering into any agreement and is essential once a Sale and Purchase Agreement is signed and due diligence begins. If you don’t have advisors, we can recommend specialists in business acquisitions.

How much money do I need to buy a business?

Most banks lend 50–60% of the purchase price of roughly 2.5-3 x EBITDA for well-established businesses. Buyers typically need 40–50% equity plus a 10% deposit when the agreement is signed and should have a credible character and business history to gain lending approvals.

Can I finance the purchase of a business?

Yes. Options include bank loans, vendor finance, and equity capital. We can introduce you to business lending experts and banking managers, just ask us, we’re happy to help.

What should I look for when choosing a business to buy?

Focus on consistent earnings, competitive advantages, good systems, low owner dependency, skilled staff, and growth potential. Our brokers help you evaluate these factors.

Can overseas buyers purchase businesses in New Zealand?

Yes. Overseas buyers can purchase many New Zealand businesses, but some transactions may require approval from the Overseas Investment Office (OIO), particularly if the business involves sensitive land, significant assets, or restricted industries. We guide international buyers through the process and connect them with legal and immigration specialists where needed.

Selling a Business

How much is my business worth?

A business is really worth what a willing buyer will pay. We help buyers and sellers by providing confidential market appraisals using tried and tested income-based, asset-based, and comparable sales methods to determine fair market value.

How long does it take to sell a business in New Zealand?

Most businesses, if priced and promoted correctly, take 3–9 months depending on size, industry, and market conditions.

Do I need to advertise my business publicly?

No. Sales are managed confidentially. We use generic non-identifiable features in our targeted marketing, use an exclusive pre-qualified buyer-database, and protect your business information using controlled permissions for information sharing with interested parties.

Can I sell part of my business or do a staged exit?

Yes. We facilitate part-share sales, investor buy-ins, and succession strategies to suit your short-term and long-term goals.

How is confidentiality protected during the sale process?

All buyers sign NDAs before accessing information. Sensitive data is shared securely via view-only links with expiry tracking. Vendors can approve or decline buyers before details are released.

What documents do I need to prepare before selling my business?

Typically, you’ll need:

  • Recent financial statements (2–3 years of P&L and balance sheets)
  • Latest year to date management accounts
  • Lease agreements and property details
  • Staff contracts and organisational structure
  • An asset register (plant, equipment, IP, vehicles)
  • Copies of major contracts with customers and suppliers

We provide a tailored checklist and help you organise these documents, so your business is “sale ready” and attractive to buyers.

Business Appraisals

What is included in a business appraisal report?

Our reports provide an indicative market value, valuation methods used, comparable sales data, risk analysis, and key value drivers.

How much does a business appraisal cost?

We offer free indicative estimates for qualifying businesses. Detailed written reports are available for a fixed fee, quoted upfront.

How long does the appraisal process take?

Most appraisals are completed within 3–5 working days once financials and supporting documents are received.

Can I get a free business appraisal?

Yes. Free estimates are available for eligible businesses. Comprehensive reports are charged at a transparent fixed fee.

When should I get a business appraisal?

Appraisals are recommended before selling, succession planning, raising capital, or restructuring, and should be reviewed annually.

Selling Shares in a Company

Can I sell part of my company in New Zealand?

Yes. You can sell shares to investors or partners, which requires legal structuring, valuation, and due diligence.

How is the value of company shares determined?

Share value reflects total company value, earnings, debt, and ownership percentage. A formal valuation ensures accuracy

Do I need shareholder approval to sell shares?

Yes. Check your company constitution and shareholder agreements. Legal advice is essential before proceeding.

Is selling shares different from selling a business?

Yes. A share sale transfers ownership (including liabilities), while a business sale transfers selected assets only.

Can I sell shares without losing control of my company?

Yes. Selling a minority stake allows you to retain majority control. We structure transactions to protect your interests.

General Business Brokerage Questions

Why should I use a licensed business broker?

A broker connects you with qualified buyers, protects confidentiality, manages negotiations, and maximises sale value.

Is your service confidential?

Yes. All enquiries are bound by confidentiality agreements, and sensitive information is released under strict controls.

How do business brokers get paid?

We charge a success-based commission, payable only when a sale completes. No upfront commissions.

What types of businesses do you sell?

We specialise in selling privately owned SMEs across New Zealand, typically with $1M–$35M annual turnover.

Can I talk to a broker before committing?

Absolutely. Book a confidential, no-obligation consultation with one of our licensed brokers.

AML Client Onboarding

Why do you need to verify my identity?

We are legally required under the AML/CFT Act to confirm client identity, perform Politically Exposed Persons (PEP) checks and, in some cases, source of wealth.

What documents will I need to provide?

Typically, photo ID (passport or driver licence) and proof of address (utility bill or bank statement). Companies, trusts, or partnerships may require additional ownership details. We conduct identity verification digitally using simple, secure & fast iBeta Level 1 and 2 ISO 330107-3 compliant AI-driven verification tools.

How will my information be stored?

Securely stored within our systems and with our verification provider Real AML, with access restricted to the JLBS AML Compliance Officer.

What happens if I cannot provide the required information?

We are legally unable to act for you. In some cases, we may also need to file a report with the NZ Police Financial Intelligence Unit.

Will my information be shared with anyone else?

Only with third-party verification providers or industry regulators if legally required. Your data is never provided to any other third party outside the intended scope of services for onboarding or used for marketing without consent.