If you’re a business owner considering selling your business in 2026, now is the time to start preparing.
The next 12 to 18 months will be critical in shaping the value, readiness, and attractiveness of your business when buyers return to the market with confidence.

Economic volatility, global politics, technology, and shifting buyer behaviour are all redefining what “value” means in today’s environment. At BSP Strategic, we work with business owners to understand not only what their business is worth — but how to make it worth more before going to market. Achieving maximum value starts with an understanding how your business is positioned in the context of the market.

1. The State of the Market & Private Equity Appetite

After a turbulent few years, private business sales and M&A activity is rebounding. Private-equity firms remain well-funded, with record levels of “dry powder” to invest, but they’re now far more selective.

Buyers are focusing on businesses that can demonstrate:

• Consistent, sustainable earnings;
• Recurring or contracted revenue streams; and
• Strong management and governance frameworks.

Valuations are no longer driven by growth forecasts alone — they’re grounded in evidence. Businesses with robust systems, audited accounts, and clear succession plans continue to attract premium multiples, while those dependent on the owner are often discounted.

If your goal is to exit in 2026, your FY25 results need to tell a clear story of stability and scalability and your FY26 & FY27 narrative should be clear. That means starting now.

2. Global Uncertainty – Trump’s Trade Policies and the Push for Sovereignty

The return of Donald Trump to the White House has already begun to reshape the global economic landscape. His administration’s renewed tariffs on Chinese goods and aggressive “America First” stance are creating fresh uncertainty across international supply chains — and forcing Australian businesses to reassess their exposure.

This environment is driving a renewed focus on sovereignty and domestic capability (including the recent Critical Minerals deal).  Many industries are now actively realigning their supply chains to reduce dependency on offshore inputs, mitigate tariff impacts, and strengthen local partnerships.

For Australian SMEs, this presents both risk and opportunity. Businesses that can demonstrate supply-chain control, domestic production, and Australian ownership are increasingly viewed as strategic assets. Conversely, those reliant on imported components or unstable global suppliers may see valuation pressure until alternative arrangements are secured.

In short, Trump’s trade policies are accelerating a structural shift towards sovereign resilience — a theme now central to how investors, lenders, and government assess long-term business value.

3. Sovereign Capabilities and the Australian Advantage

The Federal Government’s Defence Industry Development Strategy (DIDS) and its Sovereign Defence Industrial Priorities (SDIPs) are reshaping local investment flows. There’s a clear policy shift towards Australian-owned, Australian-controlled companies contributing to national resilience.

This extends well beyond defence. Manufacturing, logistics, infrastructure, and technology businesses that demonstrate sovereign capability — local ownership, Australian supply chains, and skilled domestic workforces — are increasingly attractive to both government and private investors.

If your business can align with these priorities, it will sit in a stronger strategic position when acquirers assess its long-term potential.

4. The Rise of AI and Digital Readiness

Artificial Intelligence is transforming how businesses operate — and how they’re valued. Buyers are already now asking – What business systems have been automated and what else can be done to leverage AI efficiencies?

Those investing early in digital systems, AI-assisted analytics, and process automation are already reaping the benefits. They can demonstrate stronger margins, faster reporting, and clearer data — all factors that command valuation premiums.

Even modest improvements matter. Automating invoicing, adopting optical-character-recognition (OCR) for accounts payable, or implementing CRM analytics can show a buyer your business is built for the future, not stuck in the past.

5. Is Your Business Ready to Sell?

When buyers look under the hood, they’re not just buying assets — they’re buying confidence for the future.
Ask yourself:

• Are your contracts, leases, and supplier agreements current and transferable?
• Is your revenue base sufficiently diversified across customers?
• Would your financials withstand external review and align with AASB standards and tie back to ATO lodgements?
• Can your management team operate effectively without you?

Conducting an Independent Valuation or Exit Ready Assessment 12 months ahead of your intended sale can highlight red flags and allow time to address them before due diligence begins.

6. Are You Personally Ready to Exit?

A sale isn’t only a business event — it’s a personal one. Many owners underestimate the emotional, strategic, and financial complexity of exiting their life’s work.

Key questions to consider:

• What will you do next — retire, reinvest, or remain involved?
• Have you obtained tax advice based on the likely sale structure (Asset vs Share Sale) inclusive of CGT reliefs?
• Are you psychologically ready to hand over decision-making control?

Clarity around these issues will help you negotiate with confidence and align your sale structure with your long-term goals – whether that’s an immediate exit or a staged exit over years.

7. What Factors Are Driving Valuations in Your Industry?

Every sector has unique drivers.

• Freight and logistics are shaped by infrastructure investment and decarbonisation.
• Construction and manufacturing depend on labour availability and supply-chain localisation and National Manufacture Priorities
• Healthcare and childcare benefit from population growth and demographic change.
• Technology and services are evolving rapidly through AI and cybersecurity demands.
• Defence is shaped by an urgent push towards sovereign capability and resilience.
• HVAC, Infrastructure Maintenance and Fire Protection are heavily influenced by % of recurring revenues as well as mega trends such as electrification, digitalisation and automation. These industries are also positioned well for future consolidation of a fragmented marketplace.

Understanding these trends helps position your business narrative. Buyers don’t just value current performance — they value your ability to ride the next wave of industry growth.

8. Who Will Buy Your Business? (Buyers Universe)

Knowing your most likely buyer type helps you tailor your preparation:

• Trade buyers seeking operational synergies or access to new markets.
• Private equity funds seeking scalable, well-managed platforms.
• Management buy-outs (MBOs) and vendor-financed exits retaining key people.
• Foreign investors looking for Australian footholds in defence, logistics, infrastructure and advanced manufacturing.

Each buyer type values different attributes — from EBITDA stability to intellectual property or workforce capability as well as your willingness to remain involved. Understanding this early allows you to prepare accordingly.

9. What You Can Do Over the Next Six Months to Increase your Business Valuation

If you’re aiming to sell in 2026, the next six months are decisive. Focus on:

1. Normalising EBITDA: Understand your adjusted EBITDA position for the last few years and drive EBITDA growth in FY26 through to EOFY.
2. Cleaning up financial reporting: Strengthen the accuracy and transparency of financial reporting (align with the accounting standards that strategic acquirers adopt).
3. Locking in key people: Secure retention agreements for core staff – consider profit sharing arrangements or skin in the game.
4. Diversifying revenue: Reduce dependency on single clients or contracts (more than 15% from one customer is considered dependent).
5. Tightening working capital: Demonstrate control over cashflow (receivables & payables) and inventory.
6. Documenting systems: Buyers pay more for businesses that run on process, not personality.
7. Consider your future involment: What level of involvment will you contribute after sale to assist the buyer and ensure a seamless transition.

It is important to realise that valuations are driven by exposure to risk and opportunity to grow. At a high level your objective should be to mitigate financial, legal and operational risks whilst maximising future growth opportunities. Even small improvements in the risk /growth profile can create substantial valuation uplift when multiplied by EBITDA (i.e improving the transaction multiple quickly adds significant value to your business even without increasing your EBITDA).

Final Thoughts

2026 could mark a turning point for Australian SME sales. Rising buyer confidence, decling interest rates, a favorable Australian dollar, technological disruption, and a renewed sovereign focus all point to a window of opportunity for well-prepared businesses.

The question is — will you be ready?

At BSP Strategic, we help business owners plan their exit, prepare for sale, and maximise value through independent valuations and strategic readiness assessments. Most importantly we put our advice to the test and aim to facilitate a highly competitive business sale campaign that realises maximum value on exit.
If you’re thinking about selling your business in 2026, now is the perfect time to start the conversation.

Contact BSP Strategic today for a confidential discussion about how to prepare your business for a premium outcome.