Preparing a business for sale? Start with what a buyer would see

Nov 1, 2026

Ask most business owners what their business is worth, and you'll get a figure. Ask how they arrived at it, and the answer usually includes the years they've put in, what they've gone without along the way and what they'll need to retire.

Those things are real. They just aren't what a buyer pays for.

A buyer is asking a different question: what will this business earn for me, and how sure can I be of that? The gap between those two views is where sale prices are won or lost. If you're preparing a business for sale, even years ahead, the buyer's view is the one that counts.

Preparing a business for sale: what a buyer looks at

Buyers rarely put it this way, but they are testing four things.

1. Does it run without you? If the key client relationships, decisions and know-how sit with the owner, the buyer is paying for something that could walk out the door.

2. Will the customers stay? A business that relies on one or two large customers, or on work that has to be won again every month, carries more risk than one with a broad, recurring base.

3. Is the profit real? Buyers look at profit after paying a market wage for the owner's role, how steady it has been over the last three years, and whether the owner has had to top up the cash.

4. Can you prove it? Accounts done on time, personal costs kept out, regular reporting and records that live in shared systems rather than in someone's head.

   
   

Every weakness a buyer finds becomes a reason to lower the price, add conditions or hold back part of the payment until the business proves itself. Strengths they can check for themselves do the opposite.

A five-minute check: would you buy your own business?

We've built a free scorecard that looks at your business the way a buyer would. It takes about five minutes.

You work through 24 short statements across eight areas: reliance on you, customers, profit and cash, financial information, systems, team, contracts and ownership, and the future. For each one, you choose Not yet, Partly or Yes.

At the end you'll see:

• your overall score out of 48, and your score in each area;

• how many of your answers a buyer could check for themselves; and

• the areas a buyer would worry about most.

You can download your results as a PDF to keep, share with a business partner or bring to a conversation with us.

Click here to take the scorecard.

Reading your result

Your score places your business in one of three bands.

Score	Result	What it means
0–16	Valuable to you	The business works for you, but much of its value depends on you. A buyer would see more risk than strength.
17–32	Good bones	A buyer would see real strengths, and some risks they'd price in. Start with your lowest subtotals.
33–48	Buyer-ready	The foundations a buyer looks for are largely in place, and you can show them.

A score isn't a valuation. It says nothing about value in dollars, which depends on earnings, risk and the market. What it does show is where to focus.

Whatever your band, start with the areas that scored lowest. Most improvements take time to show in the numbers, and buyers usually look back over several years. The earlier you start, the more of that work a buyer will see.

Where we can help

Business Studio is a Chartered Accounting and business advisory practice in Nelson Tasman. We work with owners at every stage, from first thinking about the future to signing the sale agreement.

• Business valuations. An independent view of what your business is worth, how a buyer would see it and what drives the number. Read more about our valuations.

• Succession and exit planning. Working out when and how you'll step back, who could take over, and how to get the business ready. If others are involved, such as co-owners, family or a key employee, ask us about our succession worksheet, which helps everyone get on the same page.

• Lifting the value. Monthly reporting, forecasting and better systems, so the business depends less on you and the profit is easier to prove.

• Sales, purchases and shareholder changes. Support through the transaction itself, alongside your lawyer and other advisers.

  
  

Talk to us about your results

Take the scorecard, then get in touch. Call us on 03 544 4772, email info@businessstudio.co.nz or book a time online.