What Is EBITDA (Australian Small Businesses Guide)
What is EBITDA? How It’s Used for Business Valuations (And Why Most Definitions Are Wrong For Australian Small Businesses) Google “what is EBITDA” and you’ll find the same definition everywhere: Earnings Before Interest, Tax, Depreciation and Amortisation. It’s technically correct, and practically useless for valuing your Australian small business. For small business sales, EBITDA isn’t […]
Business Valuation Add-Backs Explained (Australian Guide)
Business Valuation Add-Backs Explained: How to Maximise Your Sale Price And Not Lose Your Deal Business valuation add-backs are adjustments to your financials that can add hundreds of thousands of dollars to your sale price, or blow up your deal entirely if you get them wrong. There are two ways sellers lose money here. The […]
Business Valuation Multiples Explained: The Complete Guide for Australian Businesses
Business Valuation Multiples Explained: The Complete Guide for Australian Small Businesses Quick Links What Are Business Valuation Multiples? Understanding Multiple Ranges: 1.2x to 8x+ What Determines Your Multiple? Industry-Specific Multiple Ranges PEBITDA vs EBITDA Multiples Why Larger Businesses Command Higher Multiples Common Mistakes with Multiples Frequently Asked Questions Introduction Understanding business valuation multiples […]
When to Tell Staff You’re Selling Your Business
When to Tell Your Staff You’re Selling Your Business: A Timing Guide The Confidentiality Dilemma Every Seller Faces You’ve made the decision – you’re selling your business. Now comes one of the hardest questions: When do you tell your staff? Tell them too early, and you risk creating panic. Key people might start looking for […]
Business Acquisition Finance Explained: Calculate Your Borrowing Power
Business Acquisition Finance Explained: Calculate Your Borrowing Power Can You Actually Afford That Business? You’ve found the perfect business, but here’s the question that stops most buyers: Can you actually afford to buy it? Most buyers make one of two mistakes: They either assume they can’t get funding, or they march straight to their bank, […]
PEBITDA vs EBITDA: Which Should You Use for Business Valuations?
PEBITDA vs EBITDA: Which Should You Use for Business Valuations? Introduction If you’re buying or selling an Australian small to medium business, you’ll quickly encounter two critical acronyms: PEBITDA and EBITDA. Get these wrong, and you could miscalculate a business’s value by hundreds of thousands of dollars – whether you’re a seller leaving money on […]
What Is PEBITDA? (Small Business Valuation Explained)
What Is PEBITDA? Small Business Valuation Explained Introduction If you’re looking to sell your Australian small business, you’ve probably stumbled across the term “PEBITDA” and wondered what it means – and more importantly, why it matters for your business valuation. Here’s the short answer: PEBITDA is the single most important number for valuing owner-operated small […]
How to Value Your Small to Medium Business in Australia: The Complete Guide
Getting your business valuation wrong can cost you dearly, in two very different ways. Undervalue your business, and you could walk away from the negotiating table having left $50,000, $100,000, or even several hundred thousand dollars on the table. Money you earned through years of hard work, simply handed to the buyer because you didn’t […]
What Does A Good Business Broker Actually Do?
If you’re planning on selling your business, you’ve probably had at least one of these questions floating around your head at some point: Q1: What does a good business broker actually do? Q2: How to find one more suitable for your needs. Q3: When does it make sense to NOT hire one? Well good news… […]
Common Small Business Valuation Myths
If you’re planning to sell your business in the near future, you’re likely to come across all sorts of valuation estimates – many of them based on online calculators. While these tools may provide general guidelines, they often do not apply accurately to small businesses. Unlike large corporations and publicly listed companies, small business valuations […]