Selling guide
How buyers value Australian service businesses — and what moves your number
Service businesses in Australia are typically valued on a multiple of Seller's Discretionary Earnings (SDE) or EBITDA. For businesses under $3M in revenue, that multiple typically sits between 1.5x and 3.5x — but the range is wide, and what puts you at the top or bottom of it matters enormously.
What drives a higher multiple:
- Owner independence — the business runs without you present
- Recurring revenue — clients on contracts or retained arrangements
- Clean financials — documented, consistent, and easy to audit
- Documented systems — SOPs your team actually follows
- Diversified client base — no single client more than 20% of revenue
- Strong Google reputation — 4.5+ stars with consistent reviews
What discounts your multiple:
- Revenue concentrated in one or two clients
- Owner is the primary client relationship
- No documented processes — the business lives in the owner's head
- Irregular or cash-based revenue reporting
- Staff turnover that would concern a buyer
Vantix Capital's approach to valuation:
We approach valuation with the aim of being fair to both parties. A transaction that works for the seller produces a better outcome for the business long term. We do not low-ball founders and we do not waste their time.
Note: Vantix Capital is not a licensed financial advisor. This content is general information only and does not constitute financial advice.