The Productivity Paradox
The Profit Paradox When the numbers look extraordinary, a good valuer asks why…. because sometimes the answer is hard to stomach. The numbers were remarkable. Revenue was strong, Gross profit seemed under control and fixed costs had fallen; business profitability had reached levels never previously achieved. The outgoing general manager, who also held a shareholding, […]
The Wrong Number
Why buyers ignore your best year and focus on your trend Most business owners rely on the wrong number. They focus on the best year. Buyers do not. They look at the trend and more importantly, they ask a different question: What changed, and can it be repeated? The problem with a single result A […]
The Trend Is Your Friend
The Trend Is Your Friend Why patterns in your numbers matter more than the numbers themselves Most business owners look at a single year and ask,“What is my business worth?” Buyers do not. They look at the trend. And more importantly, they ask what the trend is telling them. What the trend actually reveals A […]
Profit Does Not Equal Value — And Loss Does Not Equal Nil
When a business owner asks, “What is my business worth?”, the question is rarely neutral. In my experience, around half of those conversations are driven by external pressure — ill-health, burnout, loss of a key client, or a sudden market shift. The decision to exit via selling has already been shaped by urgent external events. […]
Why EBITDA is Not the Whole Story: Deeper Insights for Growing Businesses
I had a conversation last week with a business owner who had just received an informal valuation from his accountant. Simple calculation: EBITDA times industry multiple equals business value. He rang me, rather pleased with himself, expecting I would confirm the figure, and we could move straight to marketing his business. We could not. Having […]
Debunking the Myths: What Really Drives Multiple Premiums in 2025
There is a saying at the big end of town: “Simple answers are for those who never look beneath the surface.” When it comes to business valuation multiples, the market has never been more awash in confident myths. “Just apply the magic number 3 as your multiple and off you go!” they say. Tempting, perhaps, […]
3 Post-Pandemic Changes Affecting Business Valuations
The pandemic fundamentally altered how businesses operate, and consequently, how they should be valued. Yet many business owners remain unaware of how these changes have affected their enterprise worth, positively or negatively. Consider this: when did you last examine how your lease arrangements, supply relationships, or customer inquiry patterns have evolved since 2020? If you […]
The Valuation Gap: Why Professional Advisers Are Frustrated and How We Can Fix It
Business is challenging enough without having to decipher incomprehensible valuation reports or chase valuers who have missed the point entirely. After more than a decade of conducting business valuations, I continue to witness a troubling pattern: the significant information gap between what professional advisers need and what many valuers actually deliver. This disconnect is not […]
Market Price vs. Intrinsic Value: Identifying Opportunity and Risk for Australian Business Owners
As Pablo Fernandez, Professor of Finance at IESE Business School, observed: “Value should not be confused with price, which is the quantum agreed between a seller and a buyer in the sale of a company.” Market price is what someone will pay today. Intrinsic value is what the business is actually worth. The difference between […]
Why a Site Visit is Non-Negotiable in Business Valuation
A business is never just a collection of numbers. To truly understand its value, you need more than spreadsheets; you need to see the business in action. That is why a physical site visit is not just best practice; it is essential for a robust, defensible valuation. What a Site Visit Really Reveals The Power […]