Business valuation questions, answered

The questions Australian business owners actually ask, answered directly and with real numbers. Each answer opens with the short version, then shows the working — the table, the caveats and what would change the answer for your business.

Written by the valuation team at Business Valuations Brisbane. Every report we issue is signed by a Certified Practising Valuer of the Australian Valuers Institute.

Value and price

What a business is worth and why

How much is my business worth? 2.0×–5.0× Normalised EBITDA multiplied by a market-derived figure, cross-checked against net assets. A table by earnings level. Read the answer → What multiple does a business sell for in Australia? 2.5×–4.0× Where most Australian SME sales land, with the full 1.8× to 7.5× range broken down by sector. Read the answer → What is my business worth without me? 1 turn Owner dependence is the largest single value factor. What it costs, and the four moves that reduce it. Read the answer → How is goodwill calculated? A residual Business value less net tangible assets — and how much of it is transferable rather than personal. Read the answer →

The engagement

Cost, time and who should do it

How much does a business valuation cost? Mid 4 figures Three fee bands, what drives a quote up, and why cheap valuations cost more. Read the answer → How long does a business valuation take? 10–15 days From complete information, not from engagement. Turnaround by engagement type. Read the answer → Can my accountant value my business? Yes, but Competence is rarely the issue. Accreditation and independence usually are. Read the answer → What is the difference between a valuation and an appraisal? Independence One is a formal independent opinion; the other is a broker’s marketing estimate. Read the answer →

Numbers and tax

The technical questions owners ask

What are add-backs and normalised EBITDA? 20%–40% How reported profit becomes the earnings a buyer is purchasing — in both directions. Read the answer → What is the difference between EBITDA and SDE? One wage SDE is EBITDA plus one owner’s remuneration, so its multiples are lower. They are not interchangeable. Read the answer → Do I need a business valuation for the ATO? Substantiation When market value must be substantiated, at what date, and why values get adjusted. Read the answer → Is a business valuation tax deductible? It depends On the purpose, not the invoice. A table of likely treatment by reason. Read the answer →

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Where to go next

These answers are deliberately short. The guides, sector pages and purpose pages go considerably deeper, and the FAQ covers another twenty-six questions with real numbers.