Buying a Business

Plenty of Kiwis dream of owning their own business, and buying an existing one can be a smart way to hit the ground running. You're stepping into something with customers, cash flow, and a track record. But that track record cuts both ways.

Before you shake hands and sign on the dotted line, here's what to have on your radar.

Find out why they're really selling
Retirement and lifestyle change are genuinely common reasons in New Zealand, and they're perfectly valid. But if the numbers don't back up the story, it's worth digging deeper. A business being quietly offloaded because revenue is softening tells a very different story than one being sold by an owner ready for a quieter life.

Do your due diligence properly
This is your chance to look under the bonnet. Financials, leases, supplier contracts, employee agreements, and any outstanding disputes, all of it needs to be reviewed before you commit. A few weeks of solid due diligence is a small price compared to inheriting problems you didn't know existed.

Assets or shares - it matters more than you think
Are you buying the business assets, or taking over shares in a company? The structure affects your tax position, what liabilities come with the deal, and what you're ultimately responsible for. It's not a detail to sort out later.

People walk out the door too
In a lot of Kiwi businesses, the owner is the business. Key staff, client relationships, and industry know-how aren't on any balance sheet. Make sure you understand what you're actually buying.

Get legal advice before you're committed
Not after. Early advice shapes the deal in your favour and means fewer surprises at settlement.

At Asco Legal, our commercial team helps buyers navigate every step - from first look to final signature.

09 308 8070 | ascolegal.co.nz | [email protected]