Finding the Right Buyer Can Be Worth More Than Finding a Buyer

by Dione Mauric 21st of July, 2026

Finding the Right Buyer Can Be Worth More Than Finding a Buyer

One of our recent transactions involved the successful sale of an established Queensland home aged care assistance business providing in-home support services to elderly Australians. While every transaction has its own unique challenges, this sale reinforced an important principle that applies across all industries: a business is not worth the same amount to every buyer.

Many business owners believe there is a single market value for their business. In reality, value is influenced by industry conditions, buyer demand, perceived risk and the strategic benefits an acquirer believes they can achieve after settlement. Understanding these factors is often the difference between an average outcome and an exceptional one.

The owners engaged us after deciding it was time to retire. Like many business owners in the care sector, their objectives extended well beyond achieving a strong sale price. They wanted to protect their staff, preserve the reputation they had built over many years and ensure continuity of care for their clients.

Before taking the business to market, we invested considerable time understanding not only the business itself but also the dynamics of the home aged care industry. Businesses operating within government-funded sectors require a different approach to many other industries. Buyers are not simply assessing historical financial performance—they are evaluating regulatory compliance, funding arrangements, workforce capability, referral networks and the business's ability to adapt to future policy and legislative change.

In sectors where government funding plays a significant role, industry knowledge is critical. Advisers who understand the regulatory environment can anticipate buyer concerns, identify potential risks before due diligence begins and position the business to inspire confidence. This preparation often has a direct influence on buyer interest and ultimately the value achieved.

Equally important was identifying the right buyer.

Rather than relying solely on public advertising, we implemented a targeted sales campaign designed to reach strategic aged care providers, healthcare operators, private equity-backed organisations and experienced investors already active within the sector. Every prospective purchaser was required to complete confidentiality agreements and financial qualification before receiving detailed information, ensuring confidentiality was maintained throughout the campaign.

The response was extremely strong, with multiple qualified buyers progressing through due diligence.

One of the most interesting aspects of the transaction was the variation in the value placed on the business by different buyer groups.

Financial buyers generally assessed the business based on maintainable earnings and their required return on investment. Strategic buyers looked beyond the financial statements. They recognised the value of acquiring an experienced workforce, established client relationships, proven compliance systems, recurring revenue and an immediate presence within a growing market. They also identified operational synergies and future growth opportunities that would have taken years to build organically.

As a result, strategic buyers were prepared to pay a higher earnings multiple because they perceived less risk and greater long-term value.

This illustrates one of the most common misconceptions we encounter. Buyers do not purchase a business based solely on its historical profits—they purchase its future earnings potential and the level of risk associated with achieving those earnings. Reducing perceived risk through strong systems, documented processes, compliance, capable management and quality financial reporting can materially influence the multiple a buyer is prepared to pay.

The transaction also reinforced the importance of preparation. The most successful sales are rarely created in the six months before going to market. They are often the result of decisions made years earlier to strengthen management, reduce reliance on the owner, diversify referral sources and build robust operating systems.

Whether the business operates in home aged care, disability services, childcare, healthcare or another regulated industry, understanding the commercial environment is just as important as understanding the financial statements. Industry expertise enables advisers to identify the most suitable buyer, present the business in the strongest possible light and navigate the issues that commonly arise during due diligence.

Ultimately, successful business sales are not simply about finding a buyer. They are about understanding the industry, reducing perceived risk, creating competition among qualified purchasers and identifying the buyer who sees the greatest strategic value in the opportunity. In our experience, that is often where the greatest increase in business value is achieved.

Tags: business broker tips business owners