Demonstrating future growth opportunities has emerged as one of the most crucial factors in making a business more attractive—and more valuable—to prospective buyers in New Zealand in 2025.
“While there is a market for businesses which are running at their peak, a business that has the potential to grow is likely to earn a premium on the sale price,” says Steven Matthews, Business Development Manager for Link Business Brokers—New Zealand’s largest business sales company. “Look for potential for growth in your business because it will stand you in good stead.”
Business owners nearing retirement, especially among the baby boomer generation, are often reluctant to reinvest or innovate in the twilight years of their tenure. Many are operating profitable businesses, sometimes generating seven figures annually, but without a plan for future growth.
“Buyers, particularly those entering the market with energy and capital, are not just looking for stable returns—they’re seeking headroom for expansion. A business that shows it has untapped potential, even if not fully realised yet, often commands a higher price,” says Matthews.
Why Growth Pathways Add Value
A business with a clear growth strategy—such as introducing new product lines, targeting new markets, or implementing new technology—will always be more attractive than one that appears static. Buyers will pay a premium for a business that not only performs well today but can demonstrate a credible path to significantly higher profits tomorrow.
Take, for instance, a business currently making $1 million in annual profit. If it can show a pathway—whether through expansion, operational efficiencies, or market diversification—that projects growth, the buyer may agree to a structured “earn-out” deal.
That means the seller could receive far more for his or her business upfront, with more paid later based on the business achieving its forecast targets. These kinds of deals are increasingly common, especially where the seller can map out realistic, data-backed growth opportunities.
Three practical steps to make your business more saleable
Whether you’re thinking of selling now or in three years, the groundwork begins today. Here’s how to start:-
Identify and mitigate risks
Buyers will quickly walk away from businesses that lack transparency or present hidden liabilities. Risks might include no online presence, outdated equipment, poor health and safety standards, or uncertain lease arrangements. Address these issues early. Simple fixes—such as extending a lease, giving the premises a fresh coat of paint, or digitising systems—can dramatically reduce buyer concerns and improve value.
Identify and quantify opportunities
Potential means little without a plan. Work with a broker or advisor to map out where growth can realistically come from. That could be exporting, investing in automation, or tapping into gentrifying suburbs. Show how these ideas could double output, increase revenue, or expand market share. Buyers want a business with momentum, not just stability.
Prepare your business for sale
This means more than bookkeeping. It’s about showing that the business is investor-ready. Tidy up operations, lock in key staff with incentives or shareholding options, and ensure your financials tell a clear, compelling story.
A Conversation Worth Having Early
Business owners often delay thinking about the endgame, but early planning is essential. “Have the conversation now,” says Matthews. “What will you do when you retire? Will you sell the business and move to the bach in Whangamatā? If so, start preparing—identify the risks, understand the value drivers, and put a growth plan in place.”
Engaging a broker early—even if you’re not ready to sell—allows you to benchmark your current position, explore comparable sales in your sector, and identify what a buyer will value most. Many business owners are sitting on untapped equity because they’ve never taken the time to consider how their business could evolve under new ownership.
