Home > Updates > Thinking about buying a business in 2026?
Buying a business is one of the most significant financial decisions you can make. Market conditions this year present both a unique set of opportunities and challenges for prospective buyers. Understanding these factors and careful planning can help ensure a successful acquisition.
The New Zealand economy is showing strong signs of recovery and stability following recent disruptions. This environment is highly conducive to mergers and acquisitions for several key reasons:
Due diligence is a non-negotiable. While the exact process will depend on the business and its risk profile, focusing on three core pillars – Financial, Legal, and Commercial – will protect your investment.
Financial due diligence
This confirms the financial health of the business and verifies profitability claims
Legal due diligence
Protect your future operational capacity by ensuring the business is legally sound
Commercial due diligence
This reveals the business’s true market position and growth ceiling, helping you justify the purchase price.
Commercial Due Diligence also provides the evidence to support the business’s asking price. You must conduct a formal valuation to ensure the cost aligns with the realistic return on investment (ROI) and that you are not overpaying for its market position and projected growth. It is also important to understand the business’s true worth to you.
Before you purchase a business consider what structure this business will trade-in. Trading in a company means you need to determine how many shares there will be, and who will own them.
There are also tax considerations as to the most appropriate structure, now and in the future. If you have a family home, you will want to protect that asset from trading risk. Having an appropriate business structure prior to the transfer of ownership will protect your current wealth while providing for business growth and succession planning.
It can be difficult to change once the business is purchased and trading has commenced.
Funding an acquisition can present several hurdles, whether through debt, equity, or a combination of both. Each financing method has its own advantages and considerations in terms of cost, risk, control implications, and financial flexibility.
A buyer will often combine equity – their own savings or investments from partners, friends, family, or professional investors like private equity firms and angel investors – with debt financing.
It’s essential to surround yourself with the right team to assist in the planning and execution of any acquisition. The excitement of a purchase can lead to bias, making it difficult to objectively assess the business. However, having a diverse and experienced team around you will provide objective views on business opportunities and investments.
Accountants are essential for financial analysis, structuring the transaction for tax efficiency, and performing thorough financial due diligence. Lawyers are critical for drafting and reviewing contracts, leases, and agreements to protect your interests and ensure regulatory compliance, while Business Advisors and Brokers can provide experienced guidance in acquisitions, helping you negotiate and navigate complex situations.
An alternative to buying an existing business is buying a franchise. Franchising is a popular business model for many New Zealanders, and we have one of the highest proportions of franchises per capita in the world.
The benefits are a proven system that has been tested and set up by others, so you’re not alone, but there can be drawbacks, especially if you like to do things your own way.
The purchase is just the first step. What happens after settlement can often determine whether the acquisition ultimately succeeds or struggles. A well-planned post-acquisition integration strategy helps ensure that the transition is smooth and operations continue without disruption.
Start by meeting with the outgoing owner to understand key relationships, supplier terms, and operational processes. Communicate early with staff, customers, and suppliers to reassure them about the transition and maintain confidence.
Cultural alignment is often underestimated. Understanding the existing workplace culture and finding ways to blend it with your own leadership style is key to retaining talent and ensuring productivity. Investing time in relationship and team building can significantly reduce turnover and disruption.
Review all systems – particularly accounting, payroll, and customer relationship management (CRM) software – to ensure they are accurate and compliant under your ownership. Setting up clear financial reporting and cash flow monitoring from day one is critical to tracking performance.
Are you looking to buy a business or ready to explore how an acquisition can drive your business growth? Contact one of our trusted Nexia Advisors today to discuss your options and develop a tailored acquisition strategy that aligns with your business goals.
Nexia New Zealand is one of New Zealand’s leading full-service chartered accounting and business advisory consultancy firms, offering the full range of chartered accounting, business advisory, corporate advisory, tax, audit, liquidation and receivership services.
Nexia New Zealand has four offices throughout New Zealand: Victoria Street in Christchurch, Albany on Auckland’s North Shore, Newmarket in the Auckland CBD and Hastings in Hawke’s Bay.
Reach out to one of our trusted Nexia Advisors. We have offices in Christchurch, Auckland and Hastings.
