Joel Costello - Business Broker

15/06/2026

The vendors were a genuine pleasure to work with, and they've handed over a business with a loyal following, a great reputation, and strong numbers behind it. The new owners are lovely people who are going to do a wonderful job carrying it forward.

This is what makes the job so rewarding. Great people on both sides, and a result everyone's happy with.

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JUST SOLD - Hawke's Bay Specialist Home Furnishings Business
Sold by Joel Costello - Business Broker

Another successful sale completed for a long-established Hawke's Bay business with an outstanding reputation, loyal customer base, and strong financial performance. With approximately 70% of revenue generated from repeat customers and referrals, impressive margins, and a proven operating model designed for a working couple, this opportunity attracted strong buyer interest and achieved a successful outcome.

Congratulations to both the vendor and purchaser on this successful transaction. We wish the new owners every success as they build on the business's strong foundations.

08/05/2026

Of the three things buyers weigh up, effort is the one vendors have the most control over before going to market.

The effort a business demands from its owner has a direct impact on value. A fully managed business, one with capable staff, clear systems, and an owner who works in the business by choice rather than necessity, attracts the highest multiples. A well-systemised business where the owner works part-time, has genuine flexibility, and can take holidays is considerably more valuable than one where the owner is trapped working sixty hours a week and cannot leave.

This is one of the most actionable levers a vendor has before going to market. Reducing your own involvement in the day-to-day, documenting processes, and empowering your team does not just make the business easier to run. It makes it worth more.

If you want to understand where your business sits across all three factors, risk, reward, and effort, I offer free appraisals with no obligation. Link in the comments.

07/05/2026

Reward isn't just about how much profit a business makes. It's about the return relative to what the buyer is giving up to own it.

Here's an example I use with clients.

Say you're a business owner with specialist skills worth $150,000 a year in the employment market. Your business generates $160,000 to a working owner. You're earning $10,000 more than you would as an employee, while carrying all the risk, stress, and responsibility of ownership. That's a thin reward. A buyer looking at that business is going to ask themselves why they wouldn't just keep working for someone else.

Now take the same owner, same skills, but the business generates $500,000. The gap between owning the business and being employed is substantial. That's a compelling reward, and it commands a meaningfully higher multiple.

Reward is also about the trajectory of the business. A business growing at 15% per year is worth more than an identical business that has been flat for three years, even if the current profit figures are the same. Buyers are paying for future earnings potential, and a positive trend signals that the future looks better than the present.

This is why two businesses with similar profit figures can sell for very different prices. Reward is always relative, to the market, to the role, and to the risk the buyer is taking on.

Tomorrow, the effort factor and why it's the most actionable lever most vendors overlook.

06/05/2026

When a buyer looks at your business, the first thing they're doing is looking for reasons not to buy it.

That's not cynicism. Before they get excited about the upside, they're asking how likely this business is to keep performing after they buy it. What could go wrong, and how serious would it be? The lower the risk, the more they're prepared to pay.

Here are the five risk factors that most commonly affect valuations in New Zealand:

Owner dependency. If the business cannot function without the current owner, buyers face the risk that performance drops the moment they take over. The more embedded the owner is in day-to-day operations, client relationships, and specialist knowledge, the higher this risk.

Client concentration. If a large share of revenue comes from one or two clients, the business is exposed to a significant shock if either relationship does not transfer. Buyers price this risk in.

Supply risk. Businesses that rely on a single supplier or an exclusive arrangement that may not survive a change of ownership carry supply risk that buyers will factor into their assessment.

Cashflow risk. Businesses with lumpy, unpredictable, or seasonal revenue are harder to finance and harder to plan around. Consistent, recurring revenue is rewarded with higher valuations.

Key staff risk. If one or two staff members carry critical knowledge or relationships, their departure after a sale is a genuine risk. Buyers will consider how embedded those people are and how likely they are to stay.

No business is perfect. Most will have at least one of these. Knowing about them early gives you time to address them before going to market but even if you can't, an experienced broker will help frame the issues honestly, provide solutions and give buyers the confidence to look past the risks and focus on the opportunity.

Tomorrow, what drives the reward side of the equation.

06/05/2026

Three questions determine what your business is worth.

Most business owners assume it comes down to profit alone. A multiple of earnings, plug in the numbers, done. It's more nuanced than that, and understanding how buyers actually think about value is one of the most useful things you can do before going to market.

Whether they articulate it this way or not, every buyer looking at a business is asking the same three things. The answers determine what they're willing to pay.

Risk. How likely is this business to keep performing after I buy it?
Reward. What return will I get on my investment?
Effort. What will this business actually demand of me?

A business that scores well on all three attracts the highest offers. A business that scores poorly on even one of them will see that reflected in the price or the pool of buyers prepared to make an offer.

Over the next three days I'll break down each factor and what actually moves the needle on each one.

If you want the full guide in the meantime, it's on my website — link in the comments.

01/05/2026

Incredibly proud to be in Barker's Top 5 brokers for the year, and to take out the Rising Star award. Grateful to the vendors and buyers who trusted me with some of the biggest decisions of their lives this year. Congratulations to Mike on Broker of the Year, thoroughly deserved, and to all the team.

Last month, we celebrated excellence across Barker Business Brokerage, recognising the individuals who continue to raise the bar in our industry.

Leading the way, Mike Bryce has been named Broker of the Year, an outstanding achievement that reflects consistent performance, dedication, and results.

Our Top 5 Brokers for the year:
1. Mike Bryce
2. Charles Bateman
3. Greg & Ping Tapper
4. Peter Coleman
5. Joel Costello

We also recognised exceptional emerging talent and marketing excellence:
- Rising Star: Joel Costello
- Top Marketers: Anna Davison & William Scarlett

These awards highlight the strength of our team and the depth of expertise we bring to business owners across New Zealand. Keep an eye out over the next few days as we showcase our winners.

If you're considering selling, get in touch today!

👉 Read more about the awards and what sets our brokers apart: www.barkerbusiness.co.nz/celebrating-excellence-at-barker-business-brokerage

13/04/2026

I spent ten years as a cop. I bought a business. Life forced me to sell it. None of that is how I planned to become a business broker, but all of it is why I'm good at it.

The Police taught me to understand people and different perspectives, stay calm when things get complicated, communicate clearly under pressure, and deal with people from every walk of life.

Buying and running a business taught me what it actually feels like to be a business owner. The late nights, the staff issues, the customer complaints, the pride when something goes right and the growth from implementing structure. I grew it from a single Google review to over 80, built the team, and substantially improved the financials.

Then my daughter was born with serious health conditions. We sold the business because we had to, not because the timing was right.

That experience changed how I work with vendors. Selling a business is rarely just a financial transaction. For most owners it's the culmination of years of sacrifice, stress, and hard work. Sometimes it's a choice. Sometimes life makes it for you.

I've lived that, and it gives me a genuine empathy for what my clients are going through, whether they're selling on their own terms or not.

The broker who sold my business was so impressed with how I handled the process, preparing information, engaging with buyers, working through the detail, that when the sale was done he invited me to join the company. That's how I ended up at Barker Business, and I haven't looked back.

In three years I've become one of Barker Business's Top 5 brokers and hold the company record for the most offers received on a single listing across our 19-year history. I'm proud of those results. But what I'm most proud of is that every vendor I've worked with has felt informed, in control, and well looked after throughout the process.

If you're thinking about selling your business, whether that's this year or down the track, I'd love to have a conversation.

📩 [email protected] 📞 021 229 8070

Call now to connect with business.