CLIENT PORTAL
Paul Martin Chartered Accountant Ltd :: Accounting, Taxation and Business Advisory :: Auckland, New Zealand
CLIENT PORTAL

BUYING A BUSINESS PART 1: Starting the Process

Paul Martin • August 7, 2016

Buying a businessStarting a business from scratch is not that easy. You need to deal with building your customer base, marketing your new business , hiring your staff, establishing your cash flow the list goes on. There are endless tasks and high risks, not to mention the time you need to wait for your investment and hard work to pay off…

...which is the total opposite of buying an existing business.

Purchasing a business for sale is easier, faster and less risky than starting from scratch. When you buy a business, you simply take over and continue its operation. As long as you are making a wise purchase decision, it should already have an established brand, customer base, and cash flow.

But before you get excited with the benefits of acquiring an existing business, you need to know where to start, what to do, and be aware of the whole process. You need to be warned that the whole process can be exhausting and heart-wrenching. 

As trusted business advisors and chartered accountants in Auckland , we make sure that our clients know what they are getting themselves into. We take them through and help them consider the following issues:

It is a CRITICAL investment decision

We often advise our clients to invest an hour with us so we can introduce them to the methodology we use in evaluating business opportunities. We discuss and provide them examples to assess the real and the future value of the business being sold. We also take time to answer any questions they may have. We do this to help them make the best investment decision.

It is a DUE DILIGENCE process

Chances of success

The need for adequate working capital to get started

Be clear about what you are buying

Evaluate carefully the business

These are just some of the most important things that you need to know when looking to buy a business. To find out more or for assistance with a due diligence process, call us on (09) 576 4166 or request an appointment online

Next week, we will be discussing the cost and other expenses involved in buying a business that you need to know.

If you want to stay updated and avoid missing out on any of the discussion, you can subscribe to us   here .

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How the new Government and coalition agreements might affect owners of residential rental properties

By Paul Martin • December 4, 2023
There were some key takeouts of interest to many of our clients from the recently signed coalition agreements between National, ACT and New Zealand First and the formation of the new Government. In particular there are a number of policies which will likely benefit landlord clients who own residential rentals. I have summarised some of these below. 1. Return of Interest deductibility for residential rental properties Interest deductibility for residential rental property owners will return. It will be phased back in over three tax years: • 2023/24 tax year: 60% of interest cost will be deductible. • 2024/25 tax year: 80% of interest cost will be deductible. • 2025/26 tax year: 100% of interest cost will be deductible. 2. Reduction in bright-line period National signalled in their pre-election campaign that the bright-line period for residential rental property sales would reduce from 10-years to 2-years. While the exact implementation of this policy is not yet known, it is good news on the horizon for residential property investors. 3. Reinstatement of 90-day no-cause termination notices The new government will reinstate 90-day no-cause tenancy termination notices. This will avoid many unnecessary disputes in the Tenancy Tribunal and gives landlords more confidence in letting to possibly “marginal tenants". Many landlords have avoided what they considered to be risky tenants because eviction for anti-social behaviour was so difficult. With this reinstatement, landlords might be more inclined to give a marginal tenant a chance because they know that if the tenant misbehaves, they won’t be stuck with them. If you would like more information on how these changes might affect your personal circumstances, please feel free to contact us to discuss further.
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