TEQ exists to bring corporate-class Mergers & Acquisition (M&A) advisory services to New Zealand small business owners. We work with business owners when they are considering buying a business or selling a business through a range of services designed to fit the needs of these business owners.
We are not a brokerage. We do not list and sell businesses. There are plenty of firms that specialise in that, and we are always happy to make a referral to a good broker.
We are business advisors. We work with you to help you understand the key value drivers in your business, and the business you are building. These value drivers are also critical when you sell a business, and managing these factors well will give you a better business to sell, for a better price.
How We Work With You
TEQ offer two modes of engagement: advisory-based engagements, or coaching-based engagements. The key difference between the two is the duration and level of engagement. In many cases, our clients employ us based on a bit of both advisory and coaching to achieve their desired outcome.
Advisory engagements are professional services where you want us to do the job for you. You want advice tied to a specific outcome, and you want that outcome quickly. This is akin to engaging a lawyer or an accountant, and is effective where you have a time-constrained goal, and just want the job done.
With coaching engagements, you are responsible for the heavy lifting. Our role is to guide you through the process, but you actually do the bulk of the work. These engagements are a lighter touch from us, but typically extend over a longer period. Coaching is a very cost-effective model for small business owners who are able and willing to do the work, and have the time to get things done.
Most of the services we offer can be undertaken based on either model.
Creating and Adding Value
As advocates of value-based approaches to developing businesses, one of our cornerstone offerings is providing business valuations. Understanding what a business is worth is a critical element in smart investing. We undertake hand-crafted business valuation based on proven methodologies that are applicable to New Zealand businesses. Our valuations are highly customised to your business. This isn’t a cookie-cutter, template-driven process. It is a hands-on deep dive into a business to get a proper appreciation of where the value in the business lies, and what the business is worth.
Another purpose of TEQ is to share advice on a range of business topics through our Ideas section – The TEQ Blog. The topics covered may relate to business transactions, or other observations we make along the way.
What We Are Not
The TEQ offering is sometimes difficult to position to business owners unfamiliar with Mergers and Acquisitions. And sometimes we find it easier to describe what we are not.
We are not lawyers. When buying or selling – or even considering a contract of any kind – you should always seek legal advice. We will give you general advice based on our experience with M&A, but we always defer to lawyers before finalising an agreement.
We are not tax advisors. You should expect a transaction to throw up all sorts of tax issues, and you should ensure you get appropriate tax advice before finalising any deal.
We are not registered valuers. We undertake independent business valuations. This type of valuation is ideal for an existing, profitable business being sold as a going concern. This is well suited to business owners looking to sell their business – in whole or in part – or want to apply a business value-based methodology to business decision making. There are various situations where our business valuation approach might not be suitable, and where these apply, we will not attempt a valuation.
We are not Business Brokers. We do not sell businesses. We strongly recommend our clients engage a business broker when it comes to taking the business to market. Brokers are quite single-minded in what they do, and the vast majority are very good at it: selling businesses. We know some really good brokers, and will make referrals where appropriate. We never take a fee for making a referral, from either you or the broker. If you are selling, but really don’t want to use a broker, we offer a FSBO Coaching service. FSBO stands for For Sale By Owner. We won’t sell your business, but we will coach you through the process.
So, what are we? We are professional advisors, specialising in advising business owners when they are undertaking M&A. You might think of us as the glue that connects the lawyers, tax advisors, valuers, and brokers to effect a successful transaction. You might think of us as Unbrokers – focusing on the things brokers don’t do, or aren’t good at, or don’t focus on. We get the job done, working with you and your other advisors to achieve the right outcome.
Our Target Market
Our services are designed largely to fit the SME – Small & Medium Enterprise – market. This market is made up of the largest number of companies in New Zealand, representing 95%+ of all registered companies in the country. SMEs generally have fewer than 25 full-time staff and revenues under NZ$10M per annum. There is a single owner (or couple), who works in the business. Other than that, SMEs don’t have a lot in common.
Many businesses in New Zealand were founded ‘by necessity.’ The owner wanted a job they could have a high level of control over, and creating a business was the best way to achieve this. We use our expertise to help those owners on their journey.