If you’ve ever Googled “What’s my business worth?”, you’ve probably come across an online valuation tool. You punch in a few numbers, answer some quick questions, hit a button — and boom — there’s your valuation.
Sounds great, right? Quick, cheap, and private.
And to be fair, these tools can be useful – as a very rough guide. But that’s where the usefulness often ends.
Here’s the catch:
Most online valuation tools rely on just a handful of inputs – usually profit and a few risk questions. But in the real world, valuing a business (especially an NZ SME) is far more nuanced.
For example:
- Which profit number are you using?
- Has the owner taken drawings?
- Are there add‑backs?
- How dependent is the business on the owner?
- What’s the lease situation?
- What’s demand like in the current NZ market?
Change one of those inputs and the value can swing massively.
Read the fine print.
If you scroll down, you’ll usually find a disclaimer saying something like:
“This is a guide only. For an accurate valuation, speak to a professional.”
That’s because these tools aren’t valuations – they’re marketing tools.
Most require your email and contact details so someone can follow up later.
The bottom line
Online tools can give you a ballpark idea, but they can also be wildly misleading. Relying on them too heavily can leave business owners disappointed – or worse, make big decisions based on the wrong number.
If you’re serious about selling (or planning ahead), nothing beats a proper, NZ‑market‑based valuation done by someone who understands your industry and local buyer demand.
Thinking about selling — now or down the track? If you’d like a realistic, NZ‑market view of what your business is worth (and how to maximise that value), the team at NZ Business Brokers can help.
Book a confidential, no‑obligation conversation with NZ Business Brokers to understand your options and the current buyer market.
www.nzbusinessbrokers.co.nz
