Verve gets some tips from leading business broker for NAI Harcourts, David Wells.
Can you please tell our readers a little about yourself?
After leaving university I started my working career as an executive trainee with a sizeable clothing manufacturer in Christchurch. A few years later I left to join our family business: multiple branch retailers of home appliances, pianos and musical instruments. Over the next 17 years this expanded into manufacturing, cabinet making, import/wholesale, consumer finance, and more.
What sets you apart from other brokers?
Initially, my experience in manufacturing, retailing, import/wholesale, business and commercial finance meant I could identify with a large variety of clients. And now, after 30 years, I think I must be one of the most experienced business brokers in the country having dealt with most types of business.
What plan of attack should a business take if they wish to sell?
Prepare well in advance. Have up-to-date accounts for two or three years available and documented evidence of all commercial arrangements like supply agreements, lease documents, agencies, and employment contracts, wherever possible. Also, a plant and chattel valuation, if it’s applicable.
How long is the process from someone contacting you until the sale of their business?
The average business takes around three months, but some sell within a week or two while others may take a year or more.
Do you specialize in one particular type of business or are you open to anything that comes your way?
Yes, I’ll tackle any type of business as long as it is genuine, legitimate and legal. If it’s a very small business, I may encourage the vendor to sell it themselves. I can help and advise them about the process and pitfalls.
And it’s essential that clients’ books are in order?
Absolutely. Sometimes it’s a real challenge getting all the information required from the vendor. We may give them a list of 10 things which we require.
What do you think makes you so successful?
Initially it was my background and experience. I had previous hands-on experience managing several different types of business for more than 20 years, including both public and private companies. After selling my last business, I acted as a business consultant and finance broker for several years before joining the Harcourts Group.
David Wells ‒ Senior Business Broker
david.wells@naiharcourts.co.nz | 027 436 1465
