Bayleys sets up business broking unit

Tony van Camp (left) and Chris Pritchard of Bayleys' new company sales division. Photo / Supplied

Bayleys Auckland has established a company sales division which will focus on the sale of medium to large scale businesses.

Mike Bayley, managing director of Bayley Corporation, says the move is part of a growth programme based around increasing the scope and scale of Bayleys' services. It follows the recent announcement that private company investor Direct Capital has taken a minority shareholding in the company to help facilitate this expansion.

"Many of our clients are also the owners and operators of businesses and it makes sense to extend the brokerage services that we can offer them in business sales," says Bayley. "Up until now we have largely sold businesses associated with tourism and hospitality properties but this new division will be focusing on selling businesses only and in other areas of the market."

Tony van Camp has been appointed Bayleys' manager company sales and Chris Pritchard has also joined the division. They are both experienced business brokers who have sold a wide range of enterprises.

Van Camp entered the business broking industry in 2005 after selling a New Zealand Home Loans franchise company that he jointly owned and operated for seven years. He initially worked for Tabak Business Sales and completed the Australian Property Institute's Advanced Business Valuation Course. For the past four years he has been a business broker for Auckland Company Sales & Acquisition and has been involved in the sale of a wide range of businesses including retail, manufacturing, distribution, automotive, printing packaging and factoring companies.

Chris Pritchard comes to Bayleys from Tabak Business Sales where he has spent the last four years selling medium to large businesses over most industry sectors.

Van Camp says Bayleys' company sales division will be focusing on well established businesses with good future maintainable earnings. It will handle all aspects of the sales process from the initial value appraisal through to negotiating the structure of the sale and putting a sale and purchase agreement together.

Van Camp says most business sellers want similar things - confidentiality, the right buyer and the right exit structure for them.

He says the business sales market remained active through the recession.

"There has been quite a bit of merger and acquisition activity and demand for quality businesses has exceeded supply since late 2008. Some companies which have been unable to achieve growth organically during the economic downturn have looked to acquisition to secure this and have been prepared to pay good prices for other good companies."

He says over the next 10 years, there is likely to be a significant transfer of ownership of mature businesses.

"There is an ageing group of babyboomers who have owned and worked in their businesses for many years and who are looking to enjoy their retirement years funded by money realised from the sale of their business. This is likely to result in a generational shift in the ownership of many businesses which will be a good thing for the future of New Zealand."