Selling Your Business: What Your Accountant Wants You to Know

Selling a business is usually a once-in-a-lifetime event, yet many owners start preparing only months before they want to sell. These are the points we see most often.

Buyers pay for consistent, transferable profit. Building that takes time, often several years.

A buyer will want to see several years of financial statements that are accurate and make sense. Gaps, mixed personal and business expenses, and unexplained adjustments reduce confidence and can reduce price.

If the business cannot run without you, a buyer takes on more risk. Document processes and build a team that can operate without you.

Buyers look at profit after adjusting for one-off or owner-specific items. Know what these are before you go to market.

The way the business is owned and the way the sale is structured can change the tax result. Get advice before you agree on a deal, not after.

Selling while profit is growing generally gives a better result than selling after a decline.

Eastmure looks after the accounts, tax and structure side of this. For help with the longer-term planning, Ridgeline Advisory provides succession and exit planning for NZ owners.

If you want to understand how a buyer may value your business, see this guide to business valuation methods in NZ.

For a practical overview of the steps involved, see building a business exit strategy in NZ.

Need help with your accounts or tax? Contact Eastmure & Associates. Looking at the bigger picture for your business? See our Business Advisory page.