Business acquisition
Buying a Business in Australia: A Practical Guide for Investors
8 min read
Buying a business in Australia can deliver immediate cash flow, an existing team and a proven customer base, provided the search, valuation and due diligence are done properly. This guide sets out the acquisition process we follow when we buy businesses to own and operate, and when we search on behalf of investors.
Define the acquisition mandate first
Before reviewing a single listing, define the mandate: sector, earnings range, geography, owner involvement and the return you need. A clear mandate turns a scattered search into a shortlist of businesses worth genuine effort.
We typically screen on normalised EBITDA, customer concentration, recurring revenue, lease security and whether the business can run without its current owner.
Off-market search beats public listings
The strongest acquisitions rarely reach a broker's website. Direct approaches to owners nearing retirement, supplier referrals and industry-partner introductions surface businesses with less competitive tension and more reasonable pricing.
Our network across agriculture, logistics, manufacturing, food and apparel supply gives us a direct line to owners who will consider a sale but have not listed.
Valuation: what multiple is fair
Most Australian small and mid-market businesses trade on a multiple of normalised earnings. Service businesses with owner dependence sit at the lower end; businesses with contracted revenue, defensible market position and a capable management team command more.
Normalise the earnings before applying any multiple: add back genuine one-offs, remove personal expenses, and charge a market salary for the owner's role.
Due diligence that actually protects you
Financial, legal, tax, employment and operational diligence should run in parallel under a fixed timetable. Verify revenue against bank statements, confirm supplier terms are transferable, review every employee entitlement, and check licences, leases and any environmental obligations.
Structure risk you cannot eliminate into the deal: earn-outs, escrow retention, warranties and restraint clauses.
Foreign investors and FIRB
Overseas investors may need Foreign Investment Review Board approval depending on the value and sector of the acquisition. Factor approval time into the contract conditions rather than discovering it at settlement.
We work with overseas buyers on structure, local directorship requirements and the practical realities of operating an Australian business from abroad.
The first 100 days
Value is won or lost after settlement. Retain key staff, keep the outgoing owner available under a handover agreement, protect supplier relationships and resist restructuring before you understand why things are done the way they are.
1-World Investments Pty Ltd is a Sydney-based trading and investment company. We source commodities, acquire and operate businesses, invest in real estate, and connect local and overseas investors with vetted opportunities through our industry partner network.
Talk to us about your mandate
Whether you are seeking investment, searching for a business or property, or looking for a trade partner, submit your details and the director will review them personally.