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 know what your business was truly worth.
Overvalue your business, and you’ll watch it sit on the market for months or even years. Potential buyers will look at your listing, see the inflated price, and move on to the next opportunity. Meanwhile, if you’re sick, burnt out, or simply losing interest, your business begins to decline. Staff sense the uncertainty. Systems start to slip. And by the time you finally drop the price, you’ve lost far more value than if you’d priced it correctly from day one. This scenario plays out more often than you’d think, and the financial and emotional toll on owners is significant.
The problem? Most business owners are getting terrible valuation advice.
Some turn to online calculators designed for software companies or American businesses – completely irrelevant for Australian small to medium enterprises. Others use revenue-based formulas that have no place in small to medium sized business valuations (except for accounting practices and very rare cases). Many receive well-intentioned but inaccurate guidance from accountants who specialise in tax planning, not business sales. And some rely on generic industry multiples without understanding the unique factors that affect their specific business.
This guide clears everything up. You’ll learn the most common business valuation method – the Multiple Method (also called the ROI Method) that Australian business brokers actually use to value businesses – the same method buyers use when deciding what to pay. We’ll cover:
- How to calculate adjusted profit (PEBITDA and EBITDA) correctly
- How to determine the right multiple for your business
- Common mistakes that cost sellers hundreds of thousands
- Real industry examples with actual numbers
- Red flags that decrease value (and how to address them)
By the end, you’ll understand exactly how professional valuations work and why getting expert help isn’t optional—it’s essential.
Want to skip straight to a professional business value appraisal? [Register for your complimentary business valuation HERE
1. How to Value a Business: The Multiple (ROI) Method
When it comes to valuing small to medium businesses in Australia, one method dominates: the Multiple Method, also known as the ROI Method. This is the framework that buyers, brokers, and sophisticated investors use because it directly answers the question every purchaser is asking: “What return will I get on my investment?”
The method has two parts:
Part 1: Calculate Normalised Earnings This means determining either PEBITDA (Proprietor’s Earnings Before Interest, Tax, Depreciation, and Amortisation) or EBITDA (Earnings Before Interest, Tax, Depreciation, and Amortisation). We’ll dive deep into these calculations shortly, but the key is that you’re establishing what the business truly earns after removing one-off expenses and non-operating costs.
Part 2: Apply a Risk-Adjusted Multiple Once you know the normalised earnings, you multiply that figure by a number (the “multiple”) that reflects the risk and attractiveness of the business. Higher risk = lower multiple. Lower risk, strong fundamentals = higher multiple.
The Formula:
Normalised Earnings × Multiple = Business Value
Simple in theory, complex in execution.
A Critical Mistake: Using Raw Net Profit
One of the most common errors we see is business owners (or their advisors) taking the net profit figure straight from the financial statements and multiplying it by an industry average multiple. This approach dramatically undervalues most businesses because it ignores legitimate add-backs—expenses that a new owner won’t incur or that don’t reflect the true earning potential of the business.
However, a word of caution: All add-backs must be verifiable and able to stand up in the Due Diligence process. Buyers and their accountants will scrutinise every adjustment, so everything must be legitimate and well-documented.
Now let’s break down exactly how to calculate these numbers correctly.
2. PEBITDA vs EBITDA: What’s the Difference In A Business Valuation?
This is where many valuations go off the rails. Using PEBITDA when you should use EBITDA (or vice versa) can swing your valuation by hundreds of thousands of dollars.
What is PEBITDA?
See our extended article about what PEBITDA is and how to calculate it
PEBITDA stands for Proprietor’s Earnings Before Interest, Tax, Depreciation, and Amortisation.
In a simplified form, it is the total income (adjusted profit) that a new owner who works in the business for a full week (38-45hrs/wk) can expect to earn in the business once they acquire it.
This is used for owner-operated businesses where the proprietor is actively working in the business. PEBITDA includes the owner’s wage as part of the earnings figure because a new buyer would either work in the business themselves (and therefore wouldn’t need to pay a manager) or would need to factor in that labour cost separately.
Think of it this way: if you work in your café 45 hours a week, that labour earns you a wage. A buyer who also plans to work in the business full-time will see your labour as part of the profit they’ll receive.
PEBITDA is similar to what’s called SDE (Seller’s Discretionary Earnings) in the United States.
Typical use cases:
- Businesses with under $500k in earnings
- Owner-operated businesses
- Businesses where the owner is hands-on in day-to-day operations
What is EBITDA?
EBITDA stands for Earnings Before Interest, Tax, Depreciation, and Amortisation.
In the simplest terms it is the income that an owner of a business can expect to earn while not working in the business themselves.
This is used for businesses under professional management, where the owner is not working in the business or only minimally involved. The earnings figure does NOT include the owner’s wage because there is already, or could be a manager in place or put in place by a new owner that is being paid a market rate salary. The business generates profit above and beyond what it costs to manage it.
Typical use cases:
- Businesses with over $500k in earnings
- Businesses with a management team in place
- Businesses where the owner is semi-absentee or absentee
When to Use Each One (The $500k Threshold)
Generally speaking, once a business reaches around $500k in earnings, we shift from PEBITDA to EBITDA calculations. Why?
Because at this scale, the multiple changes. EBITDA multiples are typically 0.6x to 1.0x higher than PEBITDA multiples. This is because:
- Businesses under management are less risky (not dependent on one person)
- They’re more scalable
- They appeal to a different buyer pool (investors, not just owner-operators)
- They require less day-to-day involvement from the purchaser
But here’s the professional secret: A good broker will calculate your business value using BOTH methods to see which produces a higher valuation. Some businesses are more valuable with the owner working in them (PEBITDA), while others are more valuable under management (EBITDA).
We’ll show you a real example of this in the next section.
[Not sure which method applies to your business? Get a professional assessment]
3. How to Calculate Business Value: PEBITDA & EBITDA Step-by-Step
Now we get into the mechanics. This is where most online calculators fail, where accountants who aren’t familiar with business sales make errors, and where owners who try to DIY their valuation get it wrong.
Starting Point: Net Profit (3-Year Weighted Average)
When performing a business valuation (or business appraisal) – you don’t just take the most recent year’s net profit. Instead, you use a weighted average of the last three financial years. This smooths out anomalies, shows trends, and gives buyers confidence in the sustainability of earnings.
Why three years? Because:
- One great year might be a fluke
- One bad year might not represent the current state
- Three years shows a pattern
- Buyers’ banks often require three years of financials for lending
The weighting typically places more emphasis on recent years, as they’re more indicative of current performance.
The Add-Back Process: Normalising Adjustments
Once you have your weighted net profit, you begin adjusting for expenses that either won’t continue under new ownership or that don’t reflect the true operational earning capacity of the business.
Here are examples of some the most common add-backs, though not an exhaustive list:
Expenses to ADD BACK (Increase Profit):
Non-Operating Expenses:
- Depreciation (this is a non-cash expense)
- Interest expense (new owner may have different financing)
- One director wages, drawings, and superannuation (for PEBITDA only)
- Above-market owner compensation (if the owner pays themselves more than a manager would cost)
- Personal expenses run through the business:
- Director’s personal motor vehicle expenses
- Entertainment (that’s not business-related)
- Personal mobile phone
- Travel that’s personal in nature
One-Off or Non-Recurring Expenses:
- Legal fees (unless ongoing)
- Fines
- Business sale preparation and marketing fees
- Asset immediate writeoffs
- Bad debts written off
- Donations (unless strategically valuable for PR)
- Sponsorships only if the business receives no advertisement value – if there’s genuine brand exposure, it’s a legitimate expense
- Double rent periods (during relocations)
- One-off borrowing costs
Adjustments to SUBTRACT (‘Negative adjustments/add-backs that decrease profit):
Here is a non-exhaustive list of examples. These are less common but critically important when they apply:
- Cash boosts (like JobKeeper or other government grants that won’t continue)
- Interest income (not part of operating business)
- Grants (one-off in nature)
- Underpaid wages (for example if an owner or family member is working but not paying themselves a market wage, and the new owner will need to hire someone or pay the replacement more)
- Rent-free periods (if the business enjoyed a rent holiday that won’t continue)
- Rent underpayments (if the owner owns the property and charges below market rent—the true cost should be reflected)
- Other income not part of core operations
The Complexity: Different Structures Change The Process
The calculation becomes more nuanced depending on:
1. Payment structure: Is the owner paid via PAYG wages or drawings? This affects how you calculate and adjust.
2. Number of owners: Is one owner working in the business, or two? If two owners both work full-time but a new buyer only needs one manager, you need to adjust for that redundancy.
3. PEBITDA vs EBITDA: The treatment of owner wages is completely different depending on which method you’re using.
This is why professional expertise matters. A small error in these calculations can falsely swing your valuation by tens or even hundreds of thousands of dollars in either direction.
Real Example: Regional Auto Parts Store
Let’s walk through a detailed hypothetical example using both methods.
Business Profile:
- Established auto parts supplier
- Revenue: $1.8M annually
- Owner working full-time in the business (managing operations, supplier relationships)
- Good systems in place, but owner still essential
- Strong local reputation
Financials (3-year weighted average):
- Net Profit: $280,000
Adjustments identified:
- Depreciation: $45,000
- Interest expense: $15,000
- Owner wages and super: $120,000
- Personal vehicle expenses: $18,000
- One-off legal fees (dispute settled): $8,000
PEBITDA Calculation (Owner-Operated):
Net Profit: $280,000
Add back: Depreciation + $25,000
Add back: Interest + $15,000
Add back: Owner wages and super + $120,000
Add back: Personal vehicle + $18,000
Add back: One-off legal fees + $8,000
────────────────────────────────────────────────
PEBITDA: $466,000
Multiple: 1.7x
- Why this multiple? Established supplier, good systems, but still relies on owner relationships with key suppliers and customers. Moderate risk.
Valuation: $466,000 × 1.8 = $838,800
EBITDA Calculation (Under Management):
Now let’s value the same business assuming the owner steps away and hires a manager.
Net Profit: $280,000
Add back: Depreciation + $25,000
Add back: Interest + $15,000
Add back: Owner drawings + $120,000
Add back: Personal vehicle + $18,000
Add back: One-off legal fees + $8,000
Less: Market manager salary & super - $100,000
────────────────────────────────────────────────
EBITDA: $366,000
Multiple: 2.5x
- Why higher? Under management means lower risk, more scalable, appeals to investors.
Valuation: $366,000 × 2.4 = $878,400
Analysis:
This business is valued at $39,600 MORE using the EBITDA method ($792,200k vs $915k).
If, however the business was making $80k less net profit, the valuation and preferred earning method would look different:
PEBITDA of $386,000 x 1.8 = $694,800 business valuation.
EBITDA of $286,000 x 2.4 = $686,400 business valuation.
This is why a professional broker runs multiple valuation scenarios. We don’t just pick one method and stick with it – we analyse your specific business and determine which approach yields the most accurate (and often highest) valuation.
[Want us to run multiple valuation scenarios for your business? Register for a complimentary business appraisal here.]
4. Business Valuation Multiples: Understanding Risk vs Reward
The multiple is where art meets science. It’s a number that represents how many years of earnings a buyer is willing to pay for your business, and it’s driven entirely by risk versus reward.
The Investor Mindset
Every business buyer is essentially asking: “Why should I invest my money here instead of the stock market, or in property?”
The stock market offers approximately 13-18% annual returns historically (though this varies). Importantly, those returns are relatively passive – you don’t have to show up and run Google, Apple, BHP or Commonwealth Bank every day.
A small business, by contrast, requires active involvement (or at least active oversight if under management). It’s riskier – there’s no guarantee the profit will continue, customers could leave, staff might quit, the owner’s relationships might be crucial, equipment could fail, leases could expire. The list goes on.
So buyers expect a higher return to compensate for that higher risk. The multiple reflects this risk-reward calculation.
- Low multiple (0.5x – 1.5x): Very high risk, probably no contracts, heavy owner reliance, low barriers to entry
- Moderate multiple (1.5x – 3x): Average risk, some systems, some contracts, decent industry
- High multiple (3x – 8x+): Low risk, strong contracts, protected position, excellent industry dynamics
Quick Guide: Rules of Thumb
While every business is unique, here are general guidelines:
Owner-Operated Businesses:
- Typically: 0x to 2x PEBITDA
- Lower end: High owner reliance, no contracts, low barriers to entry, low profit and margins
- Higher end: Solid systems, some contracts, good industry, high profit and margins
Under Management:
- Typically: 2x+ PEBITDA (or using EBITDA multiples)
- The removal of owner dependency significantly reduces risk
Important caveat: These are NOT hard rules. Some owner-operated businesses with excellent contracts and solid fundamentals can sell for well over 2x PEBITDA. Similarly, businesses generating over $1M in PEBITDA often command premium multiples due to their scale, stability and appeal to sophisticated buyers.
5. What Affects Business Value: Factors That Increase or Decrease Your Multiple
Now let’s get specific. What actually drives the multiple up or down?
Factors That INCREASE Multiples:
1. Industry Characteristics – Some industries simply command higher multiples due to their fundamental economics:
- Government subsidies or support
- Protected territories or licensing requirements
- High barriers to entry
- Favourable regulatory environment
2. Recurring Revenue or Forward Orders – Buyers pay premium multiples for predictable income:
- Contracts (The longer the better)
- Subscription or membership models
- Maintenance agreements
- Retainer arrangements
- Forward orders
3. Low Owner Reliance – If the business runs smoothly without the owner:
- Strong management team in place
- Documented systems and processes
- No key relationships tied solely to the owner
- Cross-trained staff
4. Barriers to Entry – What stops competitors from easily replicating your business:
- Specialised licenses or permits
- Proprietary equipment
- Prime location with limited availability
- Patents, trademarks, or IP
5. Proprietary Methods or Intellectual Property:
Unique processes, formulas, software, or methods that give you a competitive advantage and are defensible.
6. Growth Trajectory: Demonstrable growth with room to run:
- Revenue and profit increasing year-over-year
- Expanding customer base
- New products or services gaining traction
7. Size – Larger earnings typically command higher multiples:
- More sophisticated buyers (including private equity)
- Better lending options for buyers
- Generally more stable and less risky
8. Multi-Location, or Nationwide Growth Potential:
Genuine proven growth upside beyond a single geographical area. If you’ve already successfully expanded to multiple locations, it demonstrates scalability and provides clear growth opportunities for a buyer.
9. Strong Team and Leadership
- Management team with redundancy (no single point of failure)
- Key employees with long tenure
- Succession plan for critical roles
10. Industry Tailwinds – Market conditions favouring your sector:
- Growing demand
- Favourable demographic trends
- Technology or regulatory shifts in your favour
11. Geography – Location matters for multiples:
- Metro locations: Typically highest multiples (larger buyer pool, better growth potential)
- Regional: Moderate multiples
- Rural: Often lower multiples (smaller buyer pool, limited growth potential)
Red Flags That DECREASE Value:
1. Lease Issues – Property problems are deal-killers:
- Lease expiring within 6-18 months with uncertain renewal
- Demolition clause in the lease
- Significant rent increases scheduled
- Location crucial to business but no lease security
2. Declining Performance – Downward trends kill multiples:
- Revenue dropping year-over-year
- Profit margins compressing
- Customer churn increasing
3. Industry Headwinds – External factors working against you:
- Regulatory changes threatening the business model
- Technology disruption
- Market saturation
- Shifting consumer preferences away from your offering
4. Customer Concentration – Over-reliance on few clients is risky:
- Any single customer representing >20% of revenue
- Top 3 customers representing >50% of revenue
- No contracts protecting those relationships
5. Owner Dependence – If the business would collapse without the current owner:
- All client relationships are personal
- Specialised knowledge not documented or transferred
- Owner is the primary (or only) salesperson
- No succession plan
6. Inconsistent Financials – Unpredictability equals risk:
- Wild fluctuations in revenue or profit
- Incomplete or poorly maintained records
- Inability to explain variations
- Cash vs. accrual accounting issues
7. Stock Level Issues – Total stock on hand affects both the sale price and the ROI calculation for an investor. Excessive stock can actually reduce the multiple because:
- It increases the total purchase price
- It may indicate slow-moving inventory
- It reduces the buyer’s return on investment percentage
- It might suggest poor inventory management
8. Compliance Issues Legal or regulatory problems:
- Outstanding tax liabilities
- Workplace health and safety violations
- Industry-specific compliance gaps
- Ongoing disputes or litigation
[Concerned about red flags in your business? We can help you strategise to address them.]
6. Business Valuation Examples: Industry-Specific Multiples
Multiples vary dramatically by industry. Here are real-world examples:
Example 1: Pharmacy (High Multiple Industry)
Typical EBITDA Multiple: 7-8x
Why so high?
Pharmacies are one of the most valuable small business assets in Australia, and for good reason:
- Government PBS subsidies: The Pharmaceutical Benefits Scheme provides stable, predictable income. Unlike most businesses where you’re constantly fighting for customers, pharmacies have government-backed revenue.
- Geographic protection: Opening a new pharmacy requires government approval, and there are strict rules about minimum distances between pharmacies. This creates protected territories with limited competition.
- Aging population tailwinds: Australia’s demographics are in the pharmacy sector’s favour. An older population means more prescriptions, more healthcare needs, and growing demand.
- Active rollup market: Large consolidators (pharmacy groups and private equity) are actively acquiring pharmacies, often paying premium prices to build scale.
Sample Valuation:
EBITDA: $600,000
Multiple: 7.5x
Valuation: $4,500,000
This is why pharmacies rarely stay on the market long.
Example 2: Home Cleaning Business (Low Multiple Industry)
Typical PEBITDA Multiple: 1.2x – 1.5x
Why so low?
Cleaning businesses face structural challenges that keep multiples low:
- No contracts: Most cleaning clients are month-to-month. They can cancel with minimal notice, making revenue highly unstable.
- Low barriers to entry: Anyone with basic equipment and some elbow grease can start a cleaning business. Competition is intense, and there’s always someone willing to undercut on price.
- High owner reliance: Often the owner is the one doing the work or managing the schedules. Without them, the business may not function.
- Equipment easily replaced: There’s no specialised equipment or IP that creates value.
Sample Valuation:
PEBITDA: $200,000
Multiple: 1.2x
Valuation: $240,000
However, commercial cleaning businesses with long-term government or corporate contracts can command significantly higher multiples (2.5x PEBITDA) because they’ve addressed the core risk factors.
[Want to know what multiples apply in your specific industry? Get a professional appraisal.
7. Business Valuation Mistakes: Common Errors and Myths
Let’s address the biggest valuation errors we see from business owners and their advisors.
Mistake #1: Using Online Calculators
We see this constantly. An owner types their revenue and some basic info into a free online calculator, gets a number, and thinks, “Great, now I know what my business is worth.”
The problem?
- Generic algorithms: These calculators use one-size-fits-all formulas that don’t account for your specific industry, market conditions, or business characteristics.
- No financial analysis: A proper valuation requires hours (sometimes days) of diving into your financial statements, identifying legitimate add-backs, analysing trends, and normalising earnings.
- No industry data: Calculators can’t access recent comparable sales in your industry. They’re just making educated guesses based on broad assumptions.
- Wrong methods: Many calculators use revenue multiples, which are almost never appropriate for small businesses (except accounting firms and a few rare cases).
When calculators might help: If you want a very rough ballpark to see if selling is even worth exploring, fine. But for anything approaching an accurate valuation, they’re not very helpful.
An accurate appraisal requires:
- Detailed financial analysis using 3+ years of statements
- Industry-specific research
- Access to comparable sales data
- Understanding of current market conditions
- Assessment of intangible factors of the business (team, systems, contracts, etc.)
This takes expertise and time.
Mistake #2: Using the Wrong Earnings Calculation
This is huge.
Accountants, even excellent ones, often apply EBITDA calculations to small businesses that should be valued using PEBITDA. Why? Because they’re not familiar with business sale methodologies – they’re experts in tax planning and compliance, which is a completely different skill set.
The result? The valuation significantly understates the business value for owner-operated businesses.
Conversely, some owners try to use PEBITDA for larger, genuinely under-management businesses and end up with an inflated number that won’t hold up in the market.
Getting this wrong can cost you hundreds of thousands of dollars.
Mistake #3: Using Generic Industry Multiples
“I heard cafes sell for 2x.” “Someone told me managed businesses get 3x.”
Industry averages are a starting point, not a destination. Not all pharmacies sell for 7-8x. Not all cafes sell for 2x.
Why?
Because every business is unique:
- One café might have a 10-year lease in a prime location with no owner reliance → 2.5x multiple
- Another café might have the owner as the chef, lease expiring in 18 months, declining sales → 0.8x multiple
The industry gives you a range, but your specific circumstances determine where you fall within (or outside) that range.
You need comparable sales data from businesses similar to yours, sold recently, in your geographic area. This is what professional brokers (like us) have access to through associations like the AIBB.
Mistake #4: Adding Plant & Equipment Value Separately
This is the mathematical error that often affects vendors planning when they have their accountant do a valuation first before approaching a business broker/valuer.
Someone calculates:
Net Profit: $200k
Multiple: 2x
Business Value: $400k
THEN they add: Equipment value $600k
Total: $600k
This is a mistake.
Here’s why: The multiple is already based on the ROI (return on investment) that includes all assets needed to generate those earnings. When you calculate profit × multiple, you’re determining what a buyer will pay for a business that generates that level of profit using its existing assets.
If you add the asset value on top, you’ve now completely destroyed the ROI calculation. The buyer isn’t paying for the profit AND the assets separately – they’re paying a multiple of profit BECAUSE the business has the assets to generate it.
The correct approach: The multiple already factors in the assets. They’re part of the package.
Exception 1: If the second hand value of the business assets is higher than the value using the multiple method – which is often the case in transport or manufacturing businesses, a different valuation method is often used which includes plant and equipment value, not covered here.
Exception 2: If the business has significant excess assets not required for operations (e.g., an extra property, surplus equipment not in use), these can be valued separately and sold off before sale or at settlement.
Myth #5: “My Accountant Can Value My Business Accurately”
Let’s be clear about something important: Accountants are an essential part of the valuation process.
A good broker will work closely with your accountant to analyse the financials and create the accurate Adjusted Profit (PEBITDA or EBITDA) figure. Accountants are excellent at:
- Understanding your financial structure
- Verifying the accuracy of figures
- Identifying legitimate expenses and add-backs
- Ensuring everything will stand up to due diligence
- Tax planning and structuring
Where accountants typically aren’t equipped is in:
- Understanding current market conditions for business sales
- Access to comparable sales data in your industry
- Knowing what buyers are actually paying right now
- Understanding what buyers find most valuable about a business
- Industry-specific factors affecting multiples
It’s not a criticism – it’s specialisation.
Just like you wouldn’t ask your GP to perform heart surgery, you need the right specialist for the job. Your accountant handles the numbers. A business broker handles the market reality.
Best practice: Broker and accountant working together. This is how you get the most accurate valuation and the smoothest sale process.
8. Accurate Business Valuations Require Comparable Sales Data
You cannot accurately value a business in a vacuum.
Imagine trying to sell your house without knowing what other houses in your area have recently sold for. You might think your home is worth $800,000 because that’s what you need to buy your next place, but if similar homes are selling for $650,000, the market won’t care about your needs.
Business valuations work the same way.
You need:
- Recent sales in your industry (within the last few years)
- Businesses of similar size and structure
- Sales in your geographic area (or similar markets)
- Understanding of current market conditions
- Understanding of the deal structures and stock levels
Where this data comes from:
Professional business brokers who are members of organisations like the Australian Institute of Business Brokers (AIBB) have access to:
- Comprehensive databases of business sales
- Industry-specific benchmarks and trends
- Current market intelligence
- Professional standards and ethical requirements
This isn’t public information. Individual business sales are confidential, so you can’t just Google “what did cafes in Brisbane sell for in 2025.”
This is why professional valuation matters—we’re working with real data, not guesswork.
[Ready for a valuation based on real market data? Register here.]
9. Why Choose New Chapter Business Sales
When it comes to valuing your business, experience and market knowledge make all the difference.
At New Chapter Business Sales, we bring:
Real Market Intelligence
We don’t just read reports – we see what’s actually happening in the market right now. We’re negotiating deals, talking to buyers, seeing what’s selling (and what’s not), and understanding the current environment in real-time.
Buyer Knowledge
We know what buyers find valuable – not just theory on paper, but practical, actionable insights from hundreds of buyer conversations a year. We understand their concerns, their financing constraints, their risk tolerance, and what makes them pull the trigger.
AIBB Membership
As members of the Australian Institute of Business Brokers, we have access to:
- Comprehensive comparable sales database
- Industry-specific benchmarks
- Continuing professional development
- Professional standards and ethics requirements
Multiple Valuation Methods
We don’t just pick one formula and run with it. We analyse your business from multiple angles:
- PEBITDA and EBITDA calculations
- Different business valuation methods
- Different multiple scenarios
- Industry comparables
- Asset-based considerations where relevant
This comprehensive approach ensures we maximise your outcome.
Collaborative Approach
We work with your accountant, not instead of them. By combining our market expertise with your accountant’s financial knowledge, we create the most accurate valuation possible.
Australian SME Focus
We specialise in small to medium Australian businesses. We’re not using US formulas or big corporate methodologies that don’t apply to your business.
Complimentary Professional Appraisal
We offer a complimentary professional business valuation service because we want you to have accurate information before making one of the biggest decisions of your life.
Conclusion
Valuing a business correctly is complex, high-stakes, and requires expertise.
The cost of getting it wrong:
- Undervalue: Leave hundreds of thousands on the table
- Overvalue: Waste months or years, watch your business decline, lose even more value
- Either way: Stress, frustration, and regret
The benefit of getting it right:
- Maximum value for years of hard work
- Faster sale with less stress
- Smooth transition to the next chapter of your life
- Confidence in your decision
This isn’t something to DIY or leave to someone who doesn’t specialise in business sales. Your business represents years of effort, sacrifice, and dedication. It deserves a professional valuation based on real market data, industry expertise, and proven methodology.
Ready to Find Out What Your Business is Really Worth?
Register for your complimentary professional business valuation with New Chapter Business Sales today.
[Get your free business valuation: [LINK]]
Our team will:
- Analyse your financials in detail
- Calculate PEBITDA/EBITDA with proper adjustments
- Research comparable sales in your industry
- Assess the factors affecting your multiple
- Provide a comprehensive written valuation report
- Discuss strategies to maximise your sale price
There’s no obligation, no pressure – just accurate information to help you make informed decisions about your future.
Your business is worth more than a number from an online calculator. Let’s find out what buyers will actually pay.
New Chapter Business Sales
Australian Institute of Business Brokers (AIBB) Members
Specialising in Australian Small to Medium Business Valuations and Sales


