And when the thought does cross their mind, the same questions come up: Is now the right time? What’s my business actually worth? How do I even start?
According to Zoran Sarabaca, founder and Managing Director of Xcllusive Business Sales, this is more common than people think.
“The majority of business owners I speak to have never had a proper conversation about their exit,” says Sarabaca, who has been advising business owners on sales and valuations since founding Xcllusive in 2004.
“They’ve built something valuable, but they don’t know what that value actually looks like on paper. That’s the first gap we close.”
Understanding What Your Business Is Worth
Business valuation is not guesswork. It is a structured process based on financial performance, adjusted profits, and market conditions. But many owners either overestimate their value based on emotional attachment or underestimate it because they’ve never had an independent assessment.
The starting point is understanding your adjusted net profit: what the business actually earns once you strip out one-off expenses, personal costs, and non-recurring items. From there, a multiplier is applied based on the size, profitability, and risk profile of the business.
“Smaller businesses where the owner is heavily involved tend to sell at lower multiples because the buyer is essentially purchasing a job,” Sarabaca explains. “As businesses grow and become less dependent on the owner, the multiples increase. That’s where real value sits.”
For most Australian small to mid-sized businesses, sale prices typically fall between 1.5 and 3.5 times adjusted earnings.
Larger, professionally managed businesses can command higher multiples, but these are less common and come with their own set of buyer expectations.
The Mistakes That Cost Owners Money
One of the most common mistakes Sarabaca sees is owners pricing their business based on what they feel it should be worth rather than what the market will pay.
“Overpricing is the single biggest reason businesses don’t sell,” he says. “It scares off serious buyers early, and the longer a business sits on the market, the harder it becomes to generate genuine interest.”
Other common pitfalls include poor financial records, trying to sell without professional advice, and not preparing the business for sale in advance. A business that is well-documented, operationally sound, and not entirely dependent on the owner will always attract stronger buyer interest.
Preparing Before You List
Sarabaca recommends that owners start preparing at least 12 months before they plan to sell. This preparation period allows time to clean up financials, reduce owner dependency, lock in key staff and contracts, and address any operational weaknesses that could reduce the sale price.
“The best time to prepare your business for sale is when you’re not desperate to sell,” he says. “Buyers can sense urgency, and it rarely works in the seller’s favour.”
A registered business valuer, licensed broker, and active Fellow of the Australian Institute of Business Brokers, Sarabaca has spent over two decades helping owners across Australia navigate the sales process.
He is also the author of The 7-Step Guide to Selling Your Business and editor of Coast to Coast Business Sales, Australia’s longest-running business for sale magazine.
Learn More at WEXPO
Business owners considering a sale or simply wanting to understand their options are invited to attend the upcoming WEXPO event at the Novotel Parramatta on Monday, May 4, 2026.
Xcllusive Business Sales will be presenting as part of the Buy & Sell Your Business segment from 12pm to 2:30pm, covering practical insights on business valuation, preparing for sale, and what today’s buyer market looks like.
Whether you’re actively planning an exit or just starting to think about it, it’s a chance to get expert advice in person, with no obligation.
For more information, GO HERE or contact Xcllusive Business Sales directly.
Xcllusive Business Sales is one of Australia’s leading business broking firms, with a national team of specialists across every state and internationally in Hawaii. For a confidential, obligation-free business appraisal, visit www.xcllusive.com.au or call (02) 9817 3331.
