Business Valuation Australia: What Owners Need Before a Sale

If you are an Australian business owner asking what your company is worth, the useful answer is a valuation range tied to buyer demand, tax structure, and sale-readiness. A static multiple is not enough because the final price depends on who competes for the company and how much certainty each buyer can offer.

Lyndon Advisory reviews Australian valuation inquiries confidentially. We focus on whether the business can attract a credible buyer universe: Australian strategic acquirers, PE funds, PE-backed platforms, family offices, US buyers, Japanese buyers, Korean buyers, Singapore buyers, or other Asia Pacific acquirers.

Quick Answer

Valuation question	Practical answer
Main method	Normalised EBITDA multiple, cross-checked against precedent transactions, buyer universe, and deal structure.
Typical inputs	Three years of accounts, monthly management accounts, EBITDA add-backs, customer revenue, contracts, licences, debt, cash, working capital, and tax position.
Australia-specific issues	CGT concessions, FIRB, ACCC, industry approvals, employee matters, lease exposure, working-capital peg, and founder transition.
What buyers pay for	Transferable cash flow, recurring revenue, low customer concentration, sector scarcity, management depth, and clean diligence.
Best next step	Submit a confidential valuation inquiry before paying for a standalone valuation report.

“Australian sellers often focus on the multiple, but the better question is which buyers can own the asset cleanly. CGT, FIRB, ACCC, management transition, and working capital can all change the value that actually reaches shareholders.” - Daniel Bae, Founder and CEO of Lyndon Advisory, with over US$30 billion of transaction experience

How Buyers Value Australian Businesses

Most Australian mid-market companies are valued using normalised EBITDA. Buyers adjust reported profit for owner compensation, one-off expenses, related-party arrangements, non-recurring revenue, personal expenses, and any cost base that will change under new ownership.

The multiple depends on sector and risk:

• Healthcare, software, financial services, accounting, specialist education, and high-quality business services can attract stronger buyer depth.
• Construction, retail, distribution, manufacturing, and project-based services need careful positioning around backlog, customer concentration, margins, and management depth.
• Businesses with A$1 million or more of maintainable EBITDA are usually easier to assess for a structured process than very small owner-operated businesses.

Australia-Specific Valuation Adjustments

Issue	Why it affects value
Capital gains tax	ATO small business CGT concessions can materially change seller proceeds if eligibility is met.
FIRB	Foreign buyers may require approval depending on buyer identity, value, sector, land, and national security sensitivity.
ACCC	From 1 January 2026, Australia’s new merger regime changes how certain acquisitions are notified and reviewed.
Working capital	Buyers will set a normal working-capital target; excess or shortfall can change equity proceeds at completion.
Founder transition	If customer relationships sit with the founder, buyers may reduce price, require an earnout, or ask for longer transition support.

When a Formal Valuation Report Helps

A formal valuation may be useful for tax planning, shareholder disputes, divorce, estate planning, employee equity, or financing. It is not always the right first step for an owner planning a sale.

In an M&A process, value is discovered through market testing. A report may support expectations, but a prepared buyer process is what shows whether strategic acquirers or PE funds will pay above a financial baseline.

What to Prepare Before Asking for a Valuation

Useful valuation inquiries include:

• Revenue, EBITDA, and growth for the last three years
• Normalisation items and owner compensation
• Revenue by customer, geography, sector, and contract type
• Founder role and management depth
• Debt, cash, working capital, leases, and major capex
• Any licences, FIRB sensitivity, ACCC issues, employment matters, environmental issues, or property exposure
• Whether potential buyers are Australian, US, Japanese, Korean, Singaporean, Hong Kong, PE-backed, or local operators
• Shareholder objectives and preferred timing

How Lyndon Uses the Valuation Inquiry

Lyndon uses the inquiry to estimate enterprise value, buyer universe, and sale readiness. Where the likely buyer is a nearby operator for a small business, a local broker or direct path may be enough. Where the buyer universe includes PE, strategic, cross-border, or sector-specialist acquirers, a structured process may be worth running.

References

• ATO: small business CGT concessions
• Australian Government Foreign Investment: monetary thresholds
• ACCC: mergers and acquisitions
• ATO: CGT discount

Related Reading

• M&A valuation guide
• Sell Your Business in Australia: M&A Advisor Guide
• EBITDA Multiples Australia 2026
• Capital Gains Tax: Selling a Business in Australia
• How Much Does a Business Valuation Cost?

If you are considering a sale, submit a confidential valuation inquiry. Lyndon will review whether your Australian business has a buyer universe worth pursuing.