If you’re an owner-manager thinking about an exit — even if it’s a few years away — the question isn’t “What multiple will I get?” It’s: “How transferable is my business today?” That’s the conversation worth having early.

A valuation doesn’t determine what you will get for your business. Preparation, positioning, and leverage do. Valuation simply tells you where you stand before the negotiation begins.

Most business owners negotiate the sale of their company using the wrong number. They anchor on revenue. Or profit after tax. Or “what a competitor sold for.” Buyers don’t. They anchor on EBITDA.

Business valuation is a critical step for South African business owners considering the sale of a private company. This article explains how businesses in South Africa are valued, the difference between valuation and sale price, and the key drivers local and international buyers assess — including sustainable cash flows, growth prospects, and transaction risk. It outlines why private company valuations differ from listed companies, how owner-managed businesses are adjusted fo