Selling a business - how much is your business really worth?

Selling a business - how much is your business really worth?

When it’s time to talk price, most owners jump straight to a number. In this episode, we slow things down and show you how to build a value range you can stand behind—and that a buyer can live with—so the handover is smooth and drama-free.

What we cover (in plain English)

• Why outside help matters: A good accountant, valuer, lawyer or mentor will challenge your assumptions (yes, tissues may be required) and keep emotion out of the maths.
• Ways businesses are valued: Common approaches include a multiple of profit (often based on normalised profit/EBITDA), a multiple of revenue, and brand/goodwill value. Smaller businesses may lean on accountant-led ballparks; larger or broader-market sales benefit from a formal business valuer.
• Normalising the numbers: Clean up your P&L so it reflects ongoing reality—remove one-offs, and add back owner costs, interest and depreciation to show true operating performance. Good data in = good value out.
• Multiples are a guide, not gospel: Industry “norms” vary by size, risk and the buyer’s motives. Remember: value is ultimately what a capable buyer will pay, for their reasons.
• Know your buyer’s ‘why’: Are they chasing your customers, your team, your tech, your location, or market share? Their priority shifts the multiple—and your negotiation strategy.
• Risk factors that move price: Concentrated suppliers/distributors (especially overseas), unique but unproven products, timing, and having only one interested buyer can all pull value down—or up.
• Get the right lawyer: Contracts need commercial, tax and small-business smarts. The wrong clauses can cost you later.

A simple pre-valuation checklist

1. Pick your team: accountant/adviser, (possibly) valuer, and a small-business savvy lawyer.
2. Prepare clean financials: last 3 years + normalisations and add-backs documented.
3. List your value drivers: customers, team, IP/brand, processes, tech, location, key relationships.
4. Map the buyer’s motives: what are they really buying?
5. Set a range, not a number: “We’re comfortable between X and Y based on method A/B + goodwill factors.”
6. Decide your non-negotiables: price, terms, involvement after sale, timing, confidentiality.

Why this matters

Going in with a clear, supportable range—and a plan—reduces the risk of deals unravelling, post-sale disputes, and that awful “we sold too cheap” feeling a year later. Do the hard work upfront, then negotiate with confidence.

🎧 Listen to Episode 5: How Much Is Your Business Really Worth?
We unpack the methods, the math, and the headspace you need—plus when to bring in specialists and how to avoid buyer-seller blow-ups.

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