Small businesses sold through a broker
A small business is often sold through a business broker. These lines come from sales Lloyds Business Brokers published with a price and the owner's earnings. The multiples are our arithmetic on those listings.
Each multiple is the price over the owner's net return, as the broker reports it. That return is after a manager's wage, so it is not company EBITDA. These figures do not compare with the deal multiples on this site.
Small businesses sold through this broker changed hands at 1.4 to 4.0 times the owner's net return. The multiple rises with the price.
- Under A$500k1.4 times the owner's net return, middle half 1.2 to 1.7, 50+ sales
- A$500k to A$1m2.1 times the owner's net return, middle half 1.6 to 2.6, 30+ sales
- A$1m to A$2m2.9 times the owner's net return, middle half 2.2 to 3.6, 20+ sales
- A$2m to A$5m3.2 times the owner's net return, middle half 2.8 to 3.7, 30+ sales
- Over A$5m4.0 times the owner's net return, middle half 3.3 to 5.0, 20+ sales
Source: sale prices and owners' net returns published by Lloyds Business Brokers. Multiples and medians by onestepright.
Each cell gives the median, in times the owner's net return. Under it are the middle half and the number of sales.
| Price band (A$) | Median (times the owner's net return) |
|---|---|
| Under A$500k | 1.4 times the owner's net return, middle half 1.2 to 1.7, 50+ sales |
| A$500k to A$1m | 2.1 times the owner's net return, middle half 1.6 to 2.6, 30+ sales |
| A$1m to A$2m | 2.9 times the owner's net return, middle half 2.2 to 3.6, 20+ sales |
| A$2m to A$5m | 3.2 times the owner's net return, middle half 2.8 to 3.7, 30+ sales |
| Over A$5m | 4.0 times the owner's net return, middle half 3.3 to 5.0, 20+ sales |
Most of these sales carry no date. Sales from other brokers will be added as we find them.
For the ATO's cost ranges for small businesses, as a share of turnover, see small business cost ratios.