FAQ’s

BUYERS

NON-DISCLOSURE AGREEMENTS

Why do I need to sign a non-disclosure agreement to enquire on a business?

JLBS works on the instruction of the business owner. In most cases business owners will instruct JLBS to obtain a signed non-disclosure and confidentiality agreement from all interested parties and in some cases the owner will also request to approve each interested party prior to JLBS progressing their enquiry.

What happens if I do not want to supply all of the information requested on the NDA?

JLBS may not be able to send you any further information relating to the identity of the business or any other following business information to progress your enquiry.

Why do you require my Driver’s License information?

To verify your identity on behalf of the business owner, JLBS uses govt databases such as LTNZ to match the information the interested parties provide to verify their identity.

What happens to my personal information I provide?

JLBS records and safely stores all information relating to business transactions digitally on secure and encrypted third party severs including the copies of the signed non-disclosure agreements for a period of no less than 12 months. This information will never be disclosed or shared with any third party other than the business owner of the business the interested party enquires on.

SALE AND PURCHASE AGREEMENTS

How do I make an offer on a business?

Contact the Broker or Agent and advise you mish to construct a written offer for sale and purchase of the business or shares or real estate and they will be able to assist you in constructing and submitting your offer.

Who is responsible for the construction of the sale agreement?

The responsibility for the buyer’s offer is the buyers. They can choose to instruct their own solicitor to draw up their offer, or draw the offer up themselves, or ask the Broker or Agent to assist them in constructing their offer.

Who submits the Sale offer?

The Broker or Agent appointed by the business owner is responsible for receiving all buyer offers and presenting all written offers to the business owner.

Can I make a verbal offer?

No. All offers must be in witing. Only offers presented in writing to to JLBS will be presented to the business owner.

SELLERS

LISTING FOR SALE

What is my business worth?

JLBS can help you understand the business’ potential market value in the current market; however, the true fair market value of a business is the sale price point at which a willing buyer and a willing seller are willing to freely buy and sell at. This is only fully realised through the sale process.

Who sets the asking price?

The business owner.

Can you sell my business without me signing a listing agreement?

No. Agents must follow the rules and all fees and commissions, and other details of the sale need to be agreed in writing with the business owner and the proper legal authority to act needs to be given before JLBS can enter discussions with buyers regarding the details of your business for sale.

What do I need to do to list my business for sale?

First JLBS must appraise your business in writing. For this JLBS requires your business’;

  • last 3 years sets of financial statements, and;
  • the current year to date draft profit and loss and balance sheet statements, and;
  • the current stock on hand value at historic cost, and;
  • the current work in progress value based on time and materials cost.

Once the business has been appraised the listing agreement can be drawn up which will include all the details of the listing. Once the authority to act has been signed by both parties  JLBS can act to sell the business.

Do you sell the shares in my company?

Sometimes yes, but in most cases JLBS will sell the businesses assets only by way of outright sale on the ‘going concern’ basis which leaves the company legal entity in the hands of the previous owner and removes liabilities from the sale.

AML/CFT INFORMATION

What is AML/CFT?

Anti Money Laundering and Counter Financing of Terrorism.

Why do we need to do this?

Under the AML/CFT Act 2009 all Reporting Entities which JL Business Sales is, must comply with the Act. One of the areas of the Act requires reporting entities to conduct Customer Due Diligence (CDD) prior to transactions occurring.

What information will I have to provide for CDD?

You will need to provide documents confirming your name, birthdate, and address, for example:

  • passport; or
  • drivers’ licence and bank card;

and

  • bank statement or power bill

If you represent a company or trust, you may have to provide extra information like:

  • evidence of who you are acting for (that is, the beneficial owners who effectively control or benefit from the trust or company).
  • Source of wealth, i.e where and who the money came from.

What happens if I cannot provide the information?

JL Business Sales may not be able to act for you or complete your transaction.

What does JLBS do with the information I provided?

JLBS will keep a secure digital record of your confidential information, in the same way they already keep other customer information about you on third party secure servers which are backed up and protected.

If JLBS notices something that is a potential warning sign of money laundering or financing of terrorism, by law we must report it to Police.

The Police Financial Intelligence Unit (FIU) will then analyse the information you provided and other relevant details about the transaction or activity to decide which situations need to be referred to investigative branches of Police or other agencies.