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Thread: Buying a SME

  1. #1
    Senior Member hardt's Avatar
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    Lightbulb Buying a SME

    Hi All,

    I have become increasingly drawn towards investments in buying a fully managed business in NZ.

    There are many solid performing fully managed businesses out there with great cash flows that are selling at 3-5xNPAT.

    I have looked at the books for a few medium sized fully managed liquor stores, distribution businesses and wholesalers and all seem to have solid fundamentals and consistent earnings over 3-5 years.

    I am certain there are people on this website familiar with this and any wisdom on what to look out for would be greatly appreciated.

    Cheers.

  2. #2
    An Awesome Cool Cat winner69's Avatar
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    I’d want to know how ‘fully managed’ it really is. I’ve seen cases where the owner has to put in a day or two a week to keep it going.
    “Just consider that maybe the probability of you being wrong is higher than you think.”

  3. #3
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    Is there a website you can use to find companies / prices?

  4. #4
    An Awesome Cool Cat winner69's Avatar
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    Quote Originally Posted by FIsaver View Post
    Is there a website you can use to find companies / prices?
    Trademe has plenty

    These guys are pretty keen getting businesses sold
    https://www.businessesforsale.co.nz

    Or just google businesses for sale
    “Just consider that maybe the probability of you being wrong is higher than you think.”

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