Bayleys Business sales show buyer demand

Recent Bayleys Business transactions across healthcare, hospitality, engineering and building compliance show how sector knowledge and national buyer connections can turn succession plans into completed sales.

From a provincial pharmacy to a multimillion-dollar compliance provider, the deals illustrate different sources of buyer demand: established operators seeking expansion, purchasers securing proven earnings, and skilled individuals acquiring businesses they can lead themselves.

Bayleys Business national director, William Cheong, says understanding those motivations are central to preparing a business for sale.

“A buyer assessing an acquisition for strategic growth may see different value from someone purchasing an income and a working role. Identifying the likely purchaser helps shape how we present the business, substantiate its performance and structure the sales process.

“Our national network brings local relationships and specialist knowledge together, giving owners access to buyers whose search may extend well beyond their own region.”

National network connects sellers with buyers

Senior business broker Andrew Ricketts sold a fire protection and building compliance provider in an off-market transaction valued between $5 and $10 million. The vendor was introduced through Bayleys’ existing connections, demonstrating the network’s ability to bring business sale opportunities into view.

Ricketts says the targeted approach achieved the vendor’s price expectations within a relatively short timeframe while limiting disruption to daily operations.

“When there is a clear strategic fit, an existing relationship can open a productive conversation quickly,” he says. “The work then centres on demonstrating value, managing information carefully and keeping both parties moving towards an achievable agreement.

“For owners considering succession, that starts with understanding how readily the business can operate under new ownership.”

Pharmacy sale highlights sector demand

In Napier, business broker Richard Wilson sold a pharmacy for more than 4.5 times its annual earnings (EBITDA). The transaction highlighted community pharmacies, particularly in provincial centres, remain valued despite competitive pressure, with Australian pharmacy groups seeking New Zealand expansion opportunities.

Cheong says this particular outcome demonstrates the value of specialist market access in a sector where sales have traditionally relied on supplier relationships and ownership requirements constrain participation.

Hospitality businesses attract active buyers

Hospitality transactions likewise show buyers responding to demonstrable performance. Bayleys Queenstown’s Allister Simpson sold a Te Anau pizzeria as a freehold going concern for $2 million. Its prominent main-street position, strong revenue and profit, and 18 year ownership history attracted substantial interest, despite operating for eight months annually.

In Canterbury, business broker Kate Mullins says profitable bars, restaurants and gaming venues continue to attract buyers.

“Buyers need to understand what sustains the earnings: the location, operating model, customer base and costs. A realistic appraisal brings those factors together, rather than relying on turnover alone.

“Well-positioned businesses are achieving strong outcomes when pricing reflects their performance and the opportunity available to the next owner,” she says.

Engineering business draws nationwide interest

In Havelock North, senior business broker Rodger Howie sold an engineering business for $590,000, including $150,000 of stock, at just under three times the seller’s discretionary earnings.

A national campaign supported by an extensive local database generated more than 35 enquiries, with the business ultimately selling to a qualified engineer returning from Australia. The divestment allowed the vendor to retire after many years in the industry.

Buyer demand remains active nationwide

Cheong says these transactions show that buyer demand remains active nationwide, giving owners reason to explore their options.

“Buyers are pursuing businesses that offer dependable earnings, a foothold in a new market or scope for growth. For an owner considering a sale, understanding who is buying in their sector – and why – can be more useful than waiting for the broader economy to provide a clear signal.”

Further opportunities sourced through Bayleys’ internal network are expected to come to market in the coming months, including a lower North Island manufacturing business with an anticipated enterprise value exceeding $7 million, and a South Island tourism-related business expected to exceed $15 million.

“These opportunities reinforce the value of our network in identifying businesses for sale and connecting owners with specialist expertise and prospective buyers,” Cheong says.