When buyers look at a profitable SME and offer less than the owner expected, owner dependency is often the reason. Here’s what they’re pricing in, and how to change it before you sell.
Two businesses in the same sector with near-identical revenue can attract valuations that are worlds apart. The multiple is not assigned by industry. It is earned through structure, and structure can be changed.
Every buyer opens with three years of accounts. What those EOFY numbers show about add-backs, working capital, and owner dependence sets your multiple before any negotiation starts.
Most owners think valuation is all about revenue, profit, and growth. Those matter, of course. But there’s another factor that quietly shifts how investors, banks, and buyers see your business: confidence. When someone is deciding whether to lend you money, buy a stake in your business, or acquire it outright, they’re really asking three questions:…
