How valuations are quoted locally
Australian businesses are usually priced on EBITDA or seller's discretionary earnings (SDE), and results are reported in Australian dollar (AUD).
- Owner-operated businesses are usually priced on SDE, with a market wage for the working owner added back before the multiple is applied.
- Businesses with a full management team are typically priced on EBITDA, which produces a lower earnings figure but a higher multiple.
- Goodwill, plant and equipment and stock at valuation are usually itemised separately in the sale contract.
- Property owned by the business or a related trust is normally valued separately from the trading entity.
Who buys businesses here
- Owner-operators buying a job plus a return on capital
- Trade buyers consolidating a region or service line
- Private equity and family offices for larger EBITDA businesses
What commonly reduces the price
- Related-party rent and family wages must be normalised to market rates.
- Capital gains and small business concessions can change net proceeds materially — take specific tax advice.
Whichever market you are in, the underlying discipline is the same: normalise earnings, apply several methods, and weight them by how well each fits the business. See our twelve valuation methods for the full detail.