The decision to sell your business is one of the biggest you’ll ever make. It’s natural to feel uncertain about timing, valuation, and process. This guide walks you through the key questions every business owner faces when considering a sale.
How Much Is My Business Worth?
The short answer: most Australian businesses sell for 3x to 8x annual EBITDA (earnings before interest, tax, depreciation and amortisation). But your specific value depends on industry, size, growth, and risk factors.
For a detailed breakdown of valuation methods, read our complete valuation guide.
For a quick estimate, try our valuation calculator.
When Is the Right Time to Sell?
Sell from a position of strength. The best time to sell is when:
- Revenue and profit are growing or at a peak
- You have a strong pipeline or backlog
- The industry outlook is positive
- You have a capable team in place
- You’re motivated but not desperate
Don’t sell when:
- Revenue is declining (unless you have a good explanation and a credible path to recovery)
- You’re burnt out and it shows in the numbers
- You’re under financial pressure — buyers can sense desperation
- Major uncertainties are unresolved (regulatory, legal, lease)
The ideal scenario is selling when you don’t have to — this gives you the negotiating leverage to walk away from a bad deal.
The Sale Process: What to Expect
Phase 1: Preparation (2-3 months)
- Engage a corporate advisor
- Normalise financials and prepare a financial model
- Create an Information Memorandum
- Identify target buyers
Phase 2: Marketing (2-4 months)
- Approach potential buyers under confidentiality agreements
- Field initial expressions of interest
- Provide access to data room for serious parties
- Receive and evaluate indicative offers
Phase 3: Due Diligence (1-3 months)
- The preferred buyer conducts detailed financial, legal, and operational due diligence
- Negotiate deal structure, warranties, and sale agreement terms
- Agree transition arrangements
Phase 4: Completion (1 month)
- Sign the sale agreement
- Satisfy conditions precedent
- Settle and transfer ownership
- Begin transition period
Total timeline: 6-12 months from decision to sell through to settlement. Preparation before engaging an advisor can add 3-12 months on top.
Do I Need an Advisor?
You should strongly consider engaging a corporate advisor if:
- Your business is worth more than $500K
- You’ve never sold a business before
- You want to run a competitive process (not just accept one offer)
- The transaction involves complex structuring
- You want to continue running the business during the sale process
A good advisor will typically increase your sale price by more than their fee through competitive tension, professional positioning, and negotiation expertise.
Common Questions
Will my staff find out? Not during the initial stages. A well-managed process keeps confidentiality tight until a deal is agreed. Your advisor will manage this carefully.
How long will I need to stay after the sale? Most deals include a transition period of 6-12 months, sometimes with an earnout component tied to performance.
What about tax? Capital gains tax is the primary consideration. Consult your accountant early — the structure of the sale can significantly impact your after-tax outcome.
Can I sell part of my business? Yes — partial sales, management buyouts, and recapitalisations are all options. This can be a way to de-risk while retaining upside.
Start with a valuation estimate or contact us for a confidential conversation about your options.