Navigating the Sale of a Business
20 October 2024

Some Key Considerations

Selling your business involves many steps, from evaluating assets to securing necessary consents. This article explores some of the key aspects of selling a business, focusing on tangible vs. intangible assets, the role of goodwill and restraint of trade, the importance of landlord consent and lease assignment, and possible tax implications for you. 


Tangible vs. intangible assets 

When selling your business, it’s essential to distinguish between tangible and intangible assets. Tangible assets are physical items that the business owns, such as machinery, equipment, inventory, and real estate. These assets are relatively straightforward to value because they have a clear market price and can be sold independently. 


Intangible assets, on the other hand, do not have a physical presence but are crucial to the business’s value. These include intellectual property (like patents and trade marks), brand reputation, customer lists, and goodwill. Goodwill represents the business’s reputation and customer relationships, which can significantly enhance its value. Unlike tangible assets, intangible assets can be more challenging to quantify, but they are often what makes a business attractive to potential buyers. 


The role of goodwill and restraint of trade 

Goodwill is an important component in the sale of a business. It reflects the value of the business’s brand, customer base, and overall reputation. When a business is sold, the buyer often pays a premium for this goodwill, recognising that it can lead to future profits. 


To protect this investment, buyers typically include a restraint of trade clause in the sale agreement. This clause prevents you, as the seller, from starting a competing business within a specified area and timeframe. The reasoning for this is to ensure that you don’t undermine the value of the goodwill by drawing customers away from the new owner. The restraint of trade must be reasonable in scope and duration to be enforceable, balancing the buyer’s need to protect their investment with your rights to earn a livelihood. 


Landlord consent and lease assignment 

Another crucial aspect of selling a business is dealing with leased premises. If the business operates from a leased property, the lease agreement must be assigned to the new owner. This process requires the landlord’s consent, which is not always straightforward. 


Landlords typically require the new tenant to meet certain criteria, such as financial stability and a good track record. The lease assignment process usually involves providing references for the prospective tenant, evidence of their financial viability, and sometimes paying the landlord’s legal fees. It’s important to review the original lease agreement to understand the specific requirements and ensure that the landlord’s consent is obtained in writing. 


Failure to secure landlord consent can jeopardise the sale, as the new owner may not be able to operate the business from the same location. Therefore, it’s advisable to start this process early and work closely with your legal advisors to navigate any potential hurdles. 


Tax implications 

When selling a business in New Zealand, it's important to understand the tax implications. The tax treatment varies between asset and share sales, with each type of asset potentially being taxed differently. Depreciable assets like machinery may have tax implications related to depreciation recovery, and the sale of goodwill and other intangible assets may have specific tax considerations. Obtaining professional tax and accounting advice early in the sale process can help ensure these assets are correctly valued and reported. 


Additionally, Goods and Services Tax (GST) may apply depending on the sale structure. It’s crucial to determine if the sale is a going concern, as this affects GST treatment. Given the complexity of tax regulations, working with legal and tax professionals is essential to navigate the specific requirements and ensure compliance with all tax laws. 


Understanding, and taking into consideration, these key elements of your business sale can ensure a smooth transition of your business from you to the buyer. We have the expertise to facilitate a successful sale and help you maximise the value of your business. 

Join our Newsletter

Stay tuned

Contact Us

23 July 2025
When a relationship ends or circumstances change, untangling shared property can quickly become complex, emotionally, legally, and financially . R elationship property law provides a framework for dividing assets between partners. Whilst it is a legal process, it is also deeply personal. That’s why having an experienced and trusted advisor is essential. What is relationship property? The Property (Relationships) Act 1976 (the Act) governs how property is divided when a marriage, civil union, or de facto relationship ends, including when a partner passes away. In most cases, there is a presumption of a 50/50 split of shared property, but exactly what counts as “shared” can be more involved than people realise. Relationship property can include: the family home; vehicles and household contents; KiwiSaver and superannuation; income earned during the relationship; any assets acquired together; and any relationship debts. There are also important exceptions and nuances, especially if one partner has brought significant assets into the relationship, or if there are children involved. When the 50/50 rule doesn’t apply While equal sharing is the default, there are several situations where the law may allow for a different outcome: relationships of short duration (less than 3 years); significant economic disparity between partners; separate property, such as inheritance or pre-relationship assets (not intermingled); and contracting out agreements (previously known as prenups). Couples can choose to “contract out” of the default rules by signing a formal agreement. However, this must meet strict legal requirements in order to be valid and enforceable. One of these requirements is that both parties must have independent legal advice. When children are involved Children can significantly impact the division of relationship property. The law acknowledges the necessity of protecting a child’s wellbeing, particularly during family transitions. In these situations, the court may: postpone the sale of the family home if it would disrupt a child’s living situation; prioritise stability by ensuring that the primary caregiver can continue to provide a secure environment; acknowledge unpaid contributions, such as caregiving, as equal in value to financial contributions; and apply the Act to relationships of short duration if there’s a child of the relationship. Every family is different and when children are involved, the stakes are higher. That’s why it’s crucial to seek advice that combines legal clarity with compassion and care. Every situation is different While the law provides a general framework, no two families or relationships are exactly alike. That’s why having thoughtful and experienced legal support makes all the difference. Whether you're entering into a new relationship, separating, or simply planning for the future, clear advice from someone who understands the legal landscape and your personal one is essential. Why legacy matters Willis Legal has been advising Hawke’s Bay families for generations. That long history means we don’t just know the law, but also the community. We approach every situation with perspective, stability, and a practical mindset. Our clients trust us not only to get the paperwork right, but also to help them move forward with clarity and confidence. If you’re facing a separation, starting a new relationship, or looking to secure your future our team is here to help you understand your options in a way that works for you. Book a confidential consultation with us today and take the first step toward peace of mind.
9 July 2025
When you’re facing a legal issue, it’s natural to feel unsure about where to start. Legal processes can be complex, and it helps to know that you have trained professionals on your side who understand how to navigate them properly. Whether it’s buying a home, handling a dispute, or managing a family matter, working with qualified legal experts means your matter is being handled with care, skill, and integrity. At Willis Legal, we understand those concerns - and we also believe that transparency and education are the best ways to build trust. So, let’s take a closer look at what it actually takes to become a lawyer or legal executive in New Zealand, and the high professional standards all legal professionals are held to - year after year. What’s the difference between a barrister, solicitor, and legal executive? Solicitor Solicitors are usually your first point of contact for legal advice. They handle a wide range of matters like property and business transactions, family law, wills, enduring powers of attorney and business issues. Our Family Team and Dispute Resolution Team lawyers appear in court (both the Family Court and High Court) regularly, and when required, the District Court, Environment Court, Employment Relations Authority, Court of Appeal, and the Supreme Court (less often). Sometimes solicitors “brief” (engage or instruct) barristers to appear in court for more complex civil litigation, like a Supreme Court appeal hearing. All Willis Legal lawyers are “barristers and solicitors”. Barrister A barrister is a lawyer who usually specialises in courtroom advocacy and does not operate a trust account. While barristers are common in criminal law and family law, for civil matters, they’re usually engaged by solicitors to represent clients in higher courts or in complex legal matters. Willis Legal works with a number of barristers across New Zealand in relation to different legal matters when required. Legal Executive Legal executives are qualified legal professionals who work closely with solicitors, often in areas like conveyancing (buying and selling of property), wills, enduring powers of attorney, probate, and estate administration. They are trained and can be accredited through Legal Executives New Zealand ( LENZ ). Legal executives accredited through LENZ are called “Registered Legal Executives”. Legal executives play a crucial role in the delivery of legal services, particularly in property and documentation-heavy areas, like estates. Once they have over eight years' experience as a Registered Legal Executive, they can become a “Fellow” of LENZ. Becoming a Legal Professional: The Path and the Commitment Becoming a lawyer or legal executive in New Zealand isn’t just about getting a qualification and a job title. It’s about upholding trust, ethics, and accountability. To become a lawyer (barrister or solicitor), you must: complete a Bachelor of Laws (LL.B) from a recognised university; complete the Professional Legal Studies Course (also known as “profs”); be admitted to the bar by the High Court of New Zealand; and apply for and hold a current Practising Certificate as a barrister and solicitor (administered by the New Zealand Law Society), which must be renewed annually. Every year, lawyers must declare their fitness to practice, by answering a number of questions, including: all fundamental obligations as laid out in section 4 of the Lawyers and Conveyancers Act 2006, including adhering to the rules of conduct and client care for lawyers ( Lawyers and Conveyancers Act 2006 (Lawyers: Conduct and Client Care) Rules 2008); uphold the rule of law and protect the interests of their clients; declaring any criminal convictions, financial issues such as bankruptcy or tax defaults, any complaints or disciplinary actions, or any mental or physical health condition which might affect their ability to practise law; and proof that they have completed the required amount of Continuing Professional Development. This process is designed to protect clients and maintain the public’s confidence in the profession. What this means for you When you work with a legal professional - whether a solicitor, barrister, or legal executive - you’re working with someone who has gone through rigorous training and is held to strict professional standards. We know that legal outcomes can sometimes be frustrating, especially when the law doesn’t deliver the result you were hoping for. But rest assured: our team is committed to acting in your best interests, upholding the law, and delivering the best service we can within the framework of the legal system. If you ever have a question about your legal process, we’re here to talk you through it. Willis Legal Professional. Principled. On your side.
25 June 2025
New Zealand’s Healthy Homes standards have been rolling out since 1 July 2019 , culminating in a final compliance deadline of 1 July 2025 for all private residential rentals. These standards cover essential areas like heating, insulation, ventilation, moisture, drainage, and draught stopping, ensuring homes are safe, warm, and healthy. Key compliance time frames Tenancies that began or were renewed between 1 July 2021 – 27 August 2022 : Must meet standards within 90 days of tenancy start or renewal. Tenancies that began or were renewed between 28 August 2022 – 2 March 2025 : Now have up to 120 days to comply — extended due to legislative updates . Tenancies started on or after 3 March 2025 : Must comply with the 1 July 2025 deadline. All existing periodic tenancies , regardless of start date: Are also required to meet standards by 1 July 2025  New compliance statements are mandatory From 1 December 2020, it's illegal to ignore the requirement for a signed compliance statement in new or renewed tenancy agreements. This must detail the property’s current level of compliance. Failing to include this in the tenancy agreement can attract penalties of up to $500 per tenancy. Penalties & tenant rights Landlords who do not comply risk: Fines up to $7,200 per breach under the Residential Tenancies Act. Tenants can issue a 14-day notice to remedy issues. If ignored, they may apply to the Tenancy Tribunal. We see that high volumes of disputes are emerging, especially in student accommodation. Why does this matter? For tenants : You're entitled to a rental that’s warm and dry from 1 July 2025 onward — and you’ve got legal mechanisms to enforce this. For landlords : Compliance isn’t optional — it’s law. Even a single standards omission can result in Tribunal orders, rent rebates, and reputational damage. What you should do now Landlords : Book a Healthy Homes Assessment to identify what’s needed. A Healthy Homes Assessment is a property check carried out by a qualified assessor to see whether your rental meets New Zealand’s legal standards for heating, insulation, ventilation, and more. Assessments aren’t mandatory, but they’re a smart way to avoid guesswork and ensure you’re on track. Providers vary by region and service, so it’s worth doing a bit of research to find one that suits your needs. Ensure all relevant tenancy agreements include the compliance statement , and maintain evidence (eg invoices, inspection certificates). Plan and complete works before 1 July 2025 , the final deadline. Tenants : Review your tenancy agreement or ask for the compliance statement if you haven’t seen it. If your property doesn’t meet the standards, talk to your landlord. If unresolved within 14 days, consider a formal notice to remedy and prepare to go to the Tenancy Tribunal. While many landlords may have allowed compliance to drift, the law is clear: from 1 July 2025 , all rental properties must meet Healthy Homes standards , without exceptions. By getting informed and proactive now, everyone — landlords, tenants, property managers — can avoid penalties, legal disputes, and, most importantly, poor living conditions.
Show More