How valuations are quoted locally
New Zealand businesses are usually priced on EBITDA or SDE, and results are reported in New Zealand dollar (NZD).
- Owner-operated businesses are quoted on SDE, with stock at valuation added on settlement.
- A thin buyer market means marketing period and vendor finance often influence the achieved price.
- Businesses reliant on a single large customer or on the owner's personal relationships attract deeper discounts.
Who buys businesses here
- Owner-operators and lifestyle buyers
- Australian trade buyers expanding across the Tasman
- Local consolidators in trades and services
What commonly reduces the price
- Key-person dependence is the most common reason a sale stalls.
- Lease terms and rights of renewal are heavily scrutinised by buyers.
Whichever market you are in, the underlying discipline is the same: normalise earnings, apply several methods, and weight them by how well each fits the business. See our twelve valuation methods for the full detail.