The Australian small-business market in 2025 is showing resilience, but it’s more volatile than in previous years. Sales activity has been patchy month-to-month, and while many sectors are growing, overall sales growth has slowed compared with pre-pandemic averages. That means opportunities for buyers who move with clarity — and for sellers who present a tech-enabled, well-documented business that demonstrates consistent earnings.
What’s driving the market right now
Macroeconomic headwinds but hope for easing: Small businesses are still feeling cost pressures (wages, utilities, compliance). Most owners are watching interest-rate signals closely — any reduction in rates will likely lift buyer confidence and finance availability. Until then, buyers should prepare for tighter lending conditions and sellers should emphasise strong cashflow and low owner reliance.
Digital & operational strength wins: Tech-enabled businesses (online sales, good CRM/booking/point-of-sale systems, strong digital marketing) are commanding more interest and better multiples. Buyers reward predictable, measurable revenue channels.
Active investor interest in resilient sectors: Larger strategic and private-equity deals continue in areas with scale potential (e.g., childcare, niche healthcare, specialist services), highlighting demand where there’s room to roll up or scale. Presenting a clear growth pathway attracts both trade buyers and financial buyers.
What buyers should prioritise
Validated earnings and normalised adjustments — insist on clear, reconciled P&Ls and a documented list of add-backs (owner salary adjustments, one-off costs). This reduces risk and speeds up due diligence.
Funding plan ahead of offers — with lending still cautious, pre-arrange finance conversations and consider vendor finance or earn-outs to bridge valuation gaps.
Assess digital maturity & growth levers — a business with dependable online channels, repeat customers, or B2B contracts can often be scaled faster than a purely foot-traffic dependent operation.
What sellers should do to maximise value
Clean financials + narrative: tidy up historical accounts, prepare a one-page “business story” showing growth levers, customer concentration, and systems that allow the business to run without the owner. Buyers pay a premium for low owner-dependency.
Showcase technology & processes: document your tech stack, marketing ROIs, and SOPs. Tech adoption is a differentiator that converts enquiries into offers.
Price with evidence: use industry multiples and comparable sales, but be prepared to explain premiums (e.g., high margin product lines, recurring revenue, strategic location). Reliable valuation benchmarks are available for many SME sectors and should be used to justify your asking price.
Valuation & timing: what to expect
Valuations for small Australian businesses still follow the fundamentals: maintainable EBITDA, growth prospects, and risk profile. Multiples have tightened in some sectors but remain attractive for businesses with strong margins or scale potential. Sellers who invest in systems, reduce owner reliance, and demonstrate digital channels typically achieve higher multiples.
Practical next steps (for both buyers & sellers)
Buyer: get finance pre-approval, decide your maximum risked price with contingencies, and prioritise businesses with scalable elements (recurring revenue, systems, low owner-dependency).
Seller: compile clean financials (3+ years where possible), a list of assets included, SOPs, and a succinct IM (information memorandum) that highlights growth levers and measurable KPIs. Consider staged disclosures to qualified buyers only.
Both: work with a specialist business broker to price correctly, manage confidentiality, and structure deals that balance risk and reward.
Growth is what buyers pay for
Today’s market rewards businesses that can show predictable earnings and a clear path to scale. Whether you’re selling to free up capital or buying to accelerate growth, focus on demonstrable performance, systems that run without the owner, and realistic, evidence-based valuations. If you optimise for those things, you’ll position the business to attract the right buyers at the best price.