Newsletters

Newsletter - June 2024

Buyer Motivations - Part 2

Forget Being Perfect – It’s Time to Get Started

Further to last month’s update on the type of buyers that have recently transacted with Tabak, I recently read a column from a well-known real estate agent here in Christchurch, with some themes that are also relevant to business purchases, so have borrowed shamelessly from it.

We often hear from buyers who have a comprehensive checklist of requirements that they are seeking in a business. We do get it, and we are more than happy for these buyers to review opportunities in case one of our businesses hits the mark. However, there is also a danger in “overthinking”, often with our first-time buyers, dwelling on the same set of thoughts without making any progress and getting stuck in a loop i.e. going around in circles. We humans also have a negativity bias where we remember and assimilate the more negative aspects of the information and events we are exposed to, making it easy to get trapped in a repetitive and uncomfortable loop.

Overthinking is caused by fear of making a mistake, and perfectionism. Fear in the current environment is understandable, but this is what due diligence is about – reassuring yourself that the specific opportunity you are considering is well placed to weather any storms. Nothing is ever perfect, and sometimes overcoming perfectionism requires developing some momentum rather than waiting until you have every single element sorted before you make a move. Waiting too long can be costly, where an opportunity disappears, and the buyer is still waiting for the right time to make their move.

In the particular article that I read there was a strong real estate bias, but the principles apply to any investment or wealth creation opportunity, including businesses. You will have detractors telling you not to proceed or to wait for a different time or a different sector – or to simply go back to the waged/salaried workforce. Many of our buyers do that, and then sometimes reappear when that move was not as fulfilling (or as safe) as they may have thought.

Tabak is not about selling a business at all costs, and “good luck” if you are the buyer. We want to see buyers move forward, do well, add more value (and financial wellbeing) to their lives through the energy and experience they can bring to their new business. Believe it or not, so do most of our vendors – they want to see their work continued into the future and not only survive but thrive.

So, if you’re sitting, thinking, overthinking or procrastinating – then talk to knowledgeable and credible people for advice (have they “been there, done that?”), do some due diligence and then act. Actions speak louder than words and who knows what benefits you might derive. There are plenty of benefits and opportunities within the attached listings, and we wish you well when considering them.

Damien Fahey; Partner
Tabak Business Sales, Christchurch