Numbers Every Business Owner Should Know Before Selling

Thinking of selling your business in the next 6 to 24 months? Before you list, advertise or even speak to a broker—there are three essential numbers you need to know. They will define your exit strategy, shape your asking price, and influence how buyers value your business. Knowing these numbers gives you power. Don’t guess—exit with clarity.

1. EBITDA: The Earning Power That Drives Valuation

EBITDA stands for Earnings Before Interest, Taxes, Depreciation and Amortisation. It’s the single most used benchmark in valuing a business because it reflects profitability without the noise of financial structuring or asset depreciation.

Why it matters:

  • Buyers use EBITDA as the baseline for valuation calculations (typically multiplied by an industry-specific multiple)

  • It’s a cleaner measure of financial health than net profit

  • A rising EBITDA builds buyer confidence and leverage in negotiations

Tip: Start reviewing your P&L monthly with your broker or accountant. Look for ways to boost earnings before you list.

2. Your Role in the Business: Are You the Business?

This one is often overlooked. Many founders wear multiple hats—sales, admin, client delivery, marketing. But the more reliant the business is on the owner, the riskier it appears to buyers.

Why it matters:

  • A business that functions independently of the owner is more transferable and valuable

  • Buyers want to step in with minimal disruption

  • If you’re still doing too much, it signals poor systems or lack of team delegation

Tip: Begin documenting systems, automating workflows, and delegating key responsibilities now to improve business salability later.

3. Current Market Multiple in Your Industry

Valuation multiples vary by sector, geography, business size, and profitability. For example:

  • Cafés may sell at 1.5–2.5× EBITDA
  • Professional services firms may attract 3–5× EBITDA
  • Tech businesses can fetch much more with recurring revenue models

Why it matters:

  • Knowing your industry benchmark prevents you from under or overpricing
  • It informs realistic negotiations with buyers
  • It reveals how your business stacks up in the current marketplace

Tip: Ask your broker for recent sales data and market comps in your niche. A good broker will guide you through this.

Why These Numbers Shape Your Exit Outcome

Too many business owners list without preparing. They estimate value emotionally or based on what a friend sold for. The result? Stalled listings, low offers, and poor buyer engagement.

At The Brokerage Connection, we believe information = leverage. When you understand your business through a buyer’s lens, you:

  • Command stronger offers
  • Avoid lengthy negotiations
  • Reduce time on market
  • Maximise your sale price

Ready to Know Your Numbers?

We help business owners across Australia prepare for smarter exits. Whether you’re 6 months or 2 years away from selling, a Business Health Check is the smartest place to start.

Book your free business appraisal today
thebrokerageconnection.com.au

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