If you are thinking about selling your Sydney business, you are in the most active business sale market in Australia. New South Wales accounts for approximately 35% of all business sales nationally — and Sydney drives the majority of that volume. The depth of the buyer pool, the concentration of private equity activity, and the diversity of industry sectors make Sydney the best market in the country to achieve a strong sale outcome. But preparation, timing, and the right broker make the difference between a good result and a great one.
What is my Sydney business worth?
Business valuation in Sydney is driven by the same fundamentals as anywhere in Australia — earnings, growth trajectory, transferability, and risk — but the Sydney market has its own sector-specific dynamics that affect what buyers will pay.
For most Sydney SME businesses, value is calculated as a multiple of Seller's Discretionary Earnings (SDE) or EBITDA, depending on the size of the business:
- Under $500K profit: typically 2–3× SDE. Owner-operator businesses, lifestyle businesses, trades.
- $500K–$2M EBITDA: typically 3–5× EBITDA. Established SMEs with documented systems and staff.
- $2M+ EBITDA: typically 4–7× EBITDA. Institutional-grade businesses attracting private equity interest.
Sydney industrial and B2B businesses — logistics, manufacturing, warehousing, professional services — are currently trading at the higher end of these ranges due to strong buyer demand and limited quality supply. See the full sector multiples table for current benchmarks by industry.
The Sydney buyer pool in 2025–26
Understanding who is buying businesses in Sydney right now helps you position your business correctly and set realistic expectations:
- Trade buyers — existing operators acquiring competitors or complementary businesses. The most active buyer type across all industrial sectors in Western Sydney, Parramatta, and the inner west.
- Private equity-backed platforms — roll-up strategies in logistics, allied health, childcare, and professional services. Increasingly active in the $2M–$15M EBITDA range.
- Self-managed super fund (SMSF) buyers — particularly for commercial property-attached businesses and professional practices in Sydney's CBD fringe and inner suburbs.
- Owner-operators — individuals buying their first or second business, typically in the $500K–$2M range. Strong demand for businesses with documented systems and a capable team.
- Interstate and international acquirers — businesses looking to establish a Sydney footprint, particularly in logistics, distribution, and professional services.
How to sell your business in Sydney — the process
Selling a Sydney business typically takes four to nine months from engagement to settlement. The process follows a structured sequence:
- Preparation (1–3 months): Financial normalisation, information memorandum preparation, addressing any issues that would concern a buyer in due diligence. This phase is where most of the value is created or destroyed.
- Marketing (4–8 weeks): Confidential approach to qualified buyers. In Sydney, a good broker has direct relationships with the most active trade buyers and PE platforms — the best deals are often done off-market.
- Negotiation and heads of agreement (2–4 weeks): Price, structure, conditions, and transition arrangements are agreed in principle before lawyers are engaged.
- Due diligence (4–8 weeks): The buyer verifies the information provided. Clean financials and organised records compress this phase significantly.
- Settlement (2–4 weeks): Contracts exchanged, lease assigned, funds transferred. See the full sale process guide for a detailed walkthrough.
Lease assignment in Sydney — what sellers need to know
One of the most common causes of delayed or failed settlements in Sydney is the lease assignment process. When a business is sold, the lease on the premises must be assigned to the new owner — and the landlord's consent is required. In NSW, landlords have specific rights under the Retail Leases Act 1994 and the Conveyancing Act 1919.
Key points for Sydney sellers:
- Start the lease assignment process early — at the same time as the heads of agreement is signed, not after
- Sydney landlords — particularly in industrial precincts like Eastern Creek, Wetherill Park, and Moorebank — can be demanding on buyer financial capacity requirements
- Retail leases in NSW have specific disclosure obligations — the seller must provide a disclosure statement to the buyer
- Allow four to eight weeks for the assignment process — it is rarely faster in Sydney's competitive industrial leasing market
CGT concessions for Sydney business owners
Capital Gains Tax applies to most Sydney business sales, but the small business CGT concessions can significantly reduce or eliminate the tax liability:
- 15-year exemption: If you have owned the business for 15+ years and are aged 55+, the capital gain may be entirely exempt
- 50% active asset reduction: Reduces the capital gain by 50% for active business assets
- Retirement exemption: Up to $500,000 of capital gain can be exempt if contributed to superannuation
- Rollover relief: Allows deferral of CGT if the proceeds are reinvested in a replacement asset
These concessions are complex. Your accountant — who you keep throughout the sale process — is the right person to advise on CGT planning specific to your situation.
Choosing a business broker in Sydney
Sydney has dozens of business brokers, but the quality varies enormously. When selecting a broker to sell your Sydney business, look for:
- Sector specialisation: A broker who knows your industry understands what buyers value and how to present your business. A generalist broker will not know the right buyers or the right multiples.
- Buyer network: The best Sydney deals are done off-market. Ask the broker who their active buyers are in your sector.
- Transaction size fit: Some brokers focus on sub-$1M businesses; others on $5M+. Make sure the broker's typical deal size matches yours.
- NSW licence: Business brokers in NSW must hold a real estate licence. Verify the broker's licence before signing any agreement.
Richard Matthews is a licensed business broker specialising in Sydney industrial, logistics, manufacturing, and B2B businesses. Book a confidential conversation to discuss your situation — no obligation, no pressure.
