Māori business succession: Is your pakihi ready?

Over the next decade, Aotearoa will work through one of the most significant transfers of business wealth in its history. A key driver is demographics: around 68 percent of Aotearoa's small business owners are aged 50 or over. As Whakatāne accountant Jason Lougher noted in a recent column, this aging ownership profile is creating a succession wave that will see thousands of businesses change hands, with poor planning potentially risking trillions of dollars over the next 20 years.

For Māori, this wave is unfolding inside a rapidly growing and dynamic economy. The Māori asset base reached $126 billion in 2023, and entrepreneurship is flourishing, with the number of Māori employers and self-employed surging by 31% and 49% respectively between 2018 and 2023.

However, the demographic story for Māori entrepreneurs presents a bit of a contrast. Data from the 2013 Census showed that self-employed Māori were, on average, younger than their non-Māori counterparts. More recent data reinforces this, showing wāhine Māori employers are also younger, with 41% under the age of 44 compared to 32% for non-Māori wāhine. While this younger demographic might suggest Māori business owners have more time to plan, disparities in life expectancy create a counter-narrative of urgency. The time to plan is now.

He aha te utu? What's at stake beyond the dollar?

In any business succession, a buyer is paying for future earnings. In a Māori business, they are often also acquiring, or losing, intangible value that's harder to price: the kaupapa the business has held, the long-standing relationships, taonga, branding, IP, and mātauranga specific to the business.

These are not just cultural add-ons; they are core assets. These are coupled with tikanga operations unique to the organisation; manaakitanga, kaitiakitanga, and whakapapa tied to identity, provenance and obligations that should be carefully worked through in the transfer of the business and relationships.

Me aha? How to facilitate the transfer well

The most common pattern we see is owners who intend to sell "eventually" but don't begin formal planning until circumstances force it. By then, the work hasn't been done, and the value left on the table is substantial.

Three things matter early.

1. Sort the financials so they tell a clear story. A buyer (whether whānau, employee, or external) is paying for future earnings, and they need confidence those earnings are real and sustainable.

2. Document the operations. If the business exists primarily in the owner's head, it isn't really a business from a buyer's perspective. It's a job that happens to have customers.

3. Reduce key-person dependency. If significant customer or supplier relationships exist only because of the current owner personally, that's a risk buyers will price aggressively. Start streamlining those relationships now.

Te Tira Hou | Opportunity for a new generation

The demographic divide presents a clear opportunity. The national wave of retiring business owners means a vast number of established, viable businesses are coming to market. For the younger, growing cohort of Māori entrepreneurs, this is an open door.

However, aspiring owners can face structural barriers. Access to capital is a significant challenge, often linked to lower rates of home and asset ownership which can limit the ability to borrow against collateral for a business purchase.

This is why the deal structures that fit well are often bespoke. Seller financing, earn-outs, gradual handovers, and mentorship arrangements work particularly well for Māori business transitions because they can bridge capital gaps and allow the cultural and relational value to transfer alongside the commercial. A clean cash sale isn't always the right fit.

Pātai | Common questions

How early should I start succession planning? We recommend 3-5 years but the earlier the better. The conversations take time, and the value lost from leaving it later is meaningful.

What if my whānau aren't interested in taking over the business? It happens often. That isn't a failure of the plan; it's information that lets you focus on alternative paths with the right preparation.

Is selling externally "losing the business" from the whānau or community? Not necessarily. Many Māori business sales happen on terms that preserve staff, brand, and community standing. The terms of the sale matter more than the identity of the buyer.

To help you begin this important mahi, we've outlined a readiness framework below. Use these questions as a starting point to assess your pakihi from both a commercial and a cultural perspective.

Pakihi Readiness Framework

Financial Health

Do my financial statements tell a clear and credible story of sustainable earnings?
Are my accounts audited or reviewed to a standard that will give a buyer confidence?

Operational Systems

Are our key processes documented?
Could a new owner step in and understand how the business runs without me being present every day?

Key-Person Dependency

Are our most important customer and supplier relationships held by the business, or are they solely dependent on my personal involvement?
Have I started transitioning these relationships?

Legal & Structural

Is the business ownership structure clear and fit for purpose?
Are all contracts, leases, and employment agreements current and in order?

Intangible Assets & Taonga

Have we identified the key taonga, mātauranga, and other intangible assets that create value?
What measures are in place to protect these assets?
Is there a clear plan for transferring the kaitiakitanga (guardianship) of these assets?

References

BERL. (2024). Te Ōhanga Māori 2023.
BERL. (2024). Te Ōhanga Wāhine Māori: The Māori Women's Economy Report.
Lougher, J. (2026, May 8). Succession: Who will own town's businesses in 10 years? Eastern Bay App. <https://easternbayapp.co.nz/news/articles/69fc2f6cb2e7ca0001459537> 
Ministry of Business, Innovation & Employment. (2014). Māori in Business.