Some businesses sell in days—like e-commerce ventures or food manufacturing—while others, such as hospitality or high-asset transport, can linger for months; it’s a reality that makes guessing the best time to sell as reliable as fortune telling.
Steven Matthews, New Zealand Development Manager for the country’s largest business brokerage, Link Brokers, says businesses that sell quickly often share common traits.
“Work-from-home e-commerce ventures, food manufacturing, and import/export operations are among the fastest-moving categories. These businesses are generally seen as stable, with low overheads and solid growth potential over the next two to three decades.
“Other sectors attracting significant interest include IT consumables, marine repairs, and port maintenance businesses, which align with long-term industry trends and critical infrastructure demands,” he says.
On the other hand, some types of businesses take much longer to sell.
Matthews says hospitality ventures—often considered management-intensive and highly competitive—face difficulties unless well-structured. High-asset-value businesses, such as transport and logistics operations, require strategic buyers willing to invest heavily in for example a vehicle fleet, or integrate operations into their existing portfolios.
“Vape shops present another challenge and are slow to sell because financiers have ethical concerns, which makes funding difficult for buyers.
“Construction, housing, and even automotive workshops are similarly affected by market uncertainties and long-term disruption fears, particularly with evolving regulations and technological changes.”
Matthews says vendors frequently delay listing in hopes of finding a better time, but this approach can backfire.
“Delaying the process now may only see a sale closer to Christmas next year,” says Matthews.
The average business sale takes four to six months, but digital-based businesses often generate inquiries much faster. Home-based online traders, for instance, can attract dozens of potential buyers within days, while traditional brick-and-mortar operations may struggle.
The notion that waiting for end-of-year financials enhances a business’s appeal is also a misconception. Buyers primarily evaluate multi-year trading performance, future opportunities, and resilience against economic fluctuations.
Key takeaways:
1. Take the leap
A weaker trading year doesn’t mean it’s the wrong time to buy or sell. Analysing trends over multiple years and the business’s potential are more significant measurements.
2. Plan for what comes next
Vendors without a clear post-sale plan may hesitate unnecessarily. Sellers should ensure their financial and personal goals are defined to avoid second-guessing the decision to sell.
3. Think like a buyer
Highlight opportunities for growth. A business at its peak with no clear upside may discourage potential buyers because there’s nothing left in it for them.
Matthews says that over the holiday season many business owners reflect on their future plans, while buyers actively search for opportunities.
“Instead of speculating on the perfect time, focus on presenting a business that demonstrates strong fundamentals and room for future success,” he says.
ENDS.
