Valuing a business

The methods buyers, sellers and brokers use to put a price on a small business, and what pushes it up or down.

How small businesses are valued: profit, multiples and what buyers pay forThe main ways small businesses in Australia are priced, which profit figure to use, and the things that push a price up or down.4 minute read
Add-backs and normalised profit: how sellers adjust the figures, and how buyers check themHow sellers adjust reported profit with add-backs and deductions to show what a business really earns, and how buyers test each adjustment before relying on it.6 minute read
Stock at valuation: how stock is counted, valued and paid for when a business is soldHow stock is counted, valued and paid for when a business is sold, from the listing estimate to the settlement stocktake, and the terms to agree in the contract.6 minute read
Asking price and sale price: why they differ, and how to read the gapWhy a business's asking price and final sale price can differ, how sellers set a price they can defend, and how buyers read and negotiate from it.6 minute read