Start with maintainable earnings
Separate recurring operating earnings from one-off income, owner-specific expenses, unusual costs and discretionary add-backs.
Valuation Guide
How to think about business valuation before you buy or sell.
Valuation is not a single formula. It is a structured view of maintainable earnings, risk, market demand and the confidence a buyer can place in the information provided.
Compare risk, not just revenue
A buyer will look at customer concentration, lease terms, staff dependency, supplier risk, documentation quality and transferability.
Use multiples carefully
Earnings multiples vary by industry, scale, growth, margins, working capital needs and how much confidence a buyer has in the records.
Support the story with documents
Financial statements, tax records, lease details, contracts, rosters and asset lists help buyers test valuation assumptions.
Important note
This guide is general information only. It is not valuation, accounting, tax, legal, finance or investment advice. Buyers and sellers should obtain advice from appropriately qualified professionals before relying on a valuation.