At BSP Advisory we deal with many New Zealand businesses across a broad range of industries and one of the common questions we get is “How much should I sell my business for and when is the best time to sell?”
These are important questions — but they can only be answered properly by looking at the structure, performance, and readiness of the business.
That’s exactly where the STEP Programme comes in.
The Best Time to Sell Your Business
The simple answer?
The best time to sell is when the business is performing at its peak — financially, operationally, and structurally.
Buyers will pay significantly more when:
Systems are documented
Processes are consistent
The team is capable
The owner is not the bottleneck
Profitability is strong and stable
In our Step Programme (see below) we help with strengthening systems, improving visibility, reducing owner dependency, and increasing profit. These are the foundations of a high-value, low-risk business.
Unfortunately, many owners skip this preparation stage and expect a high valuation — even when key parts of the business are inefficient or overly dependent on them.
That’s where value is lost.
Why Many Owners Leave Money on the Table
Owners often:
Focus on day-to-day operations
Delay improvements
Ignore leadership development
Miss opportunities to boost profit and structure
Then, when it’s time to sell, they discover the market won’t pay what they hoped.
This is why the STEP Out phase is so important. It turns a business into something a buyer wants — rather than something an owner needs to escape.
A buyer pays more for:
Strong systems
Predictable profit
A capable team
A business that runs without the owner
This is what the STEP Programme prepares you for.
Considering a Business Valuation?
Our nationwide BSP advisors can help provide an objective view of your business.
More importantly, we can show you:
What your business might sell for today
What it could sell for after following the STEP pathway
Where your hidden value (and risk) lies
What buyers in your industry are currently looking for
Online business valuation calculators often mislead owners — they use generic multipliers and fail to capture the nuance that drives true value.
The difference between a business selling for “average” and a business selling for a premium is often what happens during the STEP Up and STEP Back work — long before the sale begins.
Why a Simple Calculator Won’t Give You the Real Value
Many calculators apply a simplistic rule:
Owner-operated businesses typically sell for 2–3× annual earnings.
But this ignores the factors that can push the multiplier far higher.
We have seen businesses sell for significantly more than the standard 2–3× multiple — but only after deliberate work in the STEP Up → STEP Back → STEP Out framework.
Your industry, team, systems, profit rhythm, and owner dependency matter far more than any generic formula.
Why Owners Sell (Even When the Business Is Profitable)
Owners exit for a number of reasons:
Retirement
Burnout
Lifestyle changes
New business opportunities
Health or family reasons
Desire to diversify wealth
Succession within the family or team
This is why STEP Out component of our programme is so helpful — it gives owners clarity around the best path long before they reach a breaking point.
Succession Planning: A Key Part of Getting the Business Ready
Succession is an important component of the STEP Programme — especially for long-time owners.
Succession planning is the intentional development of future leaders who could eventually own or run the business. This often removes owner dependency (STEP Back) and increases sale options (STEP Out).
Our advisory work has shown time and time again that:
A business with strong internal leadership is easier to sell, easier to transition, and far more valuable.
More details here: https://www.bspadvisory.co.nz/how-we-help
What are the major influences on business buyers?
Buyers look closely at:
Internal factors:
Profit consistency
Strength of systems
Quality of the team
Owner dependency
Cashflow stability
Operational efficiency
External factors:
Economic conditions
Inflation and interest rates
Labour availability
Competitive pressure
Political settings
Technology shifts
Regulatory changes
This is why working with a knowledgeable business advisor is crucial — you need someone who can help position the business and interpret the market environment.
Key Considerations When Preparing to Sell Your Business
1. What do I need to do to prepare my business for sale?
The preparation stage is part of STEP Up and STEP Back.
We identify areas to fix before going to market — structure, profitability, leadership, system gaps, and valuation drivers.
2. How will my business be valued?
Valuation blends:
current performance
structure
leadership depth
profit trends
market conditions
readiness to transition
Many owners choose to delay their sale while they work through the STEP framework to increase their exit value.
3. What are my financing options?
Owners can use strategies like:
vendor financing
share retention
staged buyouts
partial exits
Your local BSP advisor will help map the best approach.
4. How do I protect myself legally and tax-wise?
A trusted lawyer and accountant are essential. We can recommend excellent professionals in your area.
5. What paperwork is required?
Your solicitor will prepare the Sale & Purchase Agreement and ensure the right protections are in place.
6. What costs should I expect?
Depending on your approach:
Advertising
Broker fees (if used)
Legal fees
Transition support
7. How will the handover work?
This is part of the STEP Out transition phase.
With strong succession planning, handovers are smoother, faster, and far less stressful.
8. What ensures the sale goes smoothly?
Keep staff motivated
Maintain operational momentum
Resolve issues quickly
Stay focused until the handover is complete
Selling Your Business Is One of the Biggest Decisions You’ll Ever Make
The question isn’t just:
“How much is my business worth?”
but rather:
“How valuable could it be with the right preparation?”
The STEP Programme exists to give owners clarity, control, and confidence — and to help them step out with the wealth they deserve after years of hard work.
If you want a clear, practical conversation about your options, your valuation, or your timing, our advisors are here to help.
We hope this has helped.
Questions? Leave a comment below and we'll get back to you. Want to bounce ideas with a business advisor and make a plan around exiting your business? Contact us to book a consultation.
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