Buying a business in Australia costs far more than the asking price alone. On top of the purchase price, budget for legal fees (around $3,000 to $15,000), due diligence and accounting (around $2,000 to $10,000), stock at valuation, a lease bond, and a working capital buffer. The average asking price nationally is around $673,000, but there are strong opportunities under $100,000, and total upfront costs typically run a step above whatever price you agree.
The sticker price is only part of the story. Many first-time buyers focus on the advertised figure, then get caught short at settlement by the extra costs of actually taking over a business. This guide breaks down the full cost of buying a business in Australia in 2026, what the additional fees really are, how businesses are priced, and how to work out whether an asking price is fair.
How much does it cost to buy a business in Australia?
The cost of buying a business in Australia depends on its size and industry, but the average asking price is around $673,000 nationally, with plenty of businesses selling under $250,000 and entry-level opportunities under $100,000. On top of the purchase price, expect to add several thousand to tens of thousands of dollars in legal, due diligence, stock and setup costs, plus a working capital buffer.
Think of the price in two parts: the purchase price you negotiate, and the transaction and setup costs layered on top. A useful rule of thumb is to budget the agreed price plus an extra allowance for fees, stock and working capital, so you are not scrambling for cash at settlement. To see the real spread of prices, browse current businesses for sale or filter to businesses under $500k, where most first-time buyers focus.
What is the average price of a business in Australia?
The average asking price for a business in Australia in 2026 is roughly $673,000, while the average sale price is lower, at around $595,000, reflecting the usual gap between asking and selling. Prices vary widely by location and industry: Sydney averages around $550,000, and small owner-operated businesses often sell for well under $250,000. Price ultimately tracks profit, not turnover.
Averages hide a huge range. A solo cleaning or mowing run might sell for $50,000, a suburban cafe for $200,000 to $400,000, and an established, systemised business for well over $1 million. Location matters too: capital-city and prime sites cost more, while regional and suburban businesses often offer better value. Compare a few markets, such as businesses for sale in Sydney and Melbourne, to get a feel for pricing in your area.
What additional costs come with buying a business?
Beyond the purchase price, the main additional costs of buying a business in Australia are legal fees, due diligence and accounting, stock at valuation, a lease bond or bank guarantee, insurance and setup, and working capital. In most states there is little or no stamp duty on business assets, though duty can apply if land is included. These extras commonly add several thousand to tens of thousands of dollars.
Here is what to budget for on top of the agreed price:
A note on stamp duty: most Australian states and territories have abolished stamp duty on business assets such as goodwill and plant, so on a typical asset sale you often pay little or none. However, duty can still apply if the sale includes land or premises, and the rules vary by state, so always confirm your position with your accountant or solicitor.
How are businesses priced?
Most small businesses in Australia are priced as a multiple of their adjusted annual profit, known as Seller's Discretionary Earnings (SDE), usually around 1.5 to 3 times. Larger businesses may be priced on an EBITDA multiple, and asset-heavy businesses factor in the value of their equipment plus goodwill. The multiple rises with strong profit, growth, recurring revenue and low reliance on the owner.
In practice, a business earning $150,000 in adjusted profit with a multiple of 2.5 would be priced around $375,000. The exact multiple depends on how attractive and low-risk the business looks to buyers. For the full detail on how value is calculated, see our guide on how much a business is worth, and use the free valuation tool to run the numbers on any listing.
How do you know if a business is priced fairly?
To judge whether a business is priced fairly, verify its adjusted profit against tax returns and bank statements, check the asking price against the typical 1.5 to 3 times SDE range for its industry, and compare it with recent sales of similar businesses. If the price sits far above what the earnings and comparable sales support, it is overpriced, no matter how appealing the business looks.
Price should always trace back to verified profit and real market comparisons. Be wary of any seller who justifies a high price on potential or turnover rather than proven earnings. Sitting in the business, reviewing the numbers with your accountant, and benchmarking against similar listings on Exity will quickly tell you whether an asking price is realistic. For the complete process, follow our ultimate guide to buying a business in Australia.
How much deposit do you need to buy a business?
If you are borrowing to buy a business, lenders typically expect a deposit of around 20 to 50 percent of the purchase price, along with evidence of the business's cash flow. Because many smaller businesses are affordable enough to self-fund, some buyers need no loan at all. Vendor finance, where the seller accepts payment over time, can also reduce the upfront cash required.
The deposit is only one part of the cash you need at settlement, so factor it in alongside the transaction costs and working capital above. To understand your finance options, read our guide to business loans for buying a business, which covers secured loans, unsecured loans and vendor finance.
How can you reduce the cost of buying a business?
You can reduce the cost of buying a business by negotiating on price, asking for vendor finance, buying a smaller or regional business, or choosing a low-overhead model. Owner-operated service businesses, home-based businesses and asset-light franchises all offer lower entry costs than premises-heavy retail or hospitality, while suburban and regional listings often deliver better value than prime city sites.
Cost is not fixed. Skilled negotiation, a willingness to look beyond the inner city, and choosing a leaner business model can all bring the total outlay down significantly. For affordable options, see our guides to the best businesses to buy under $100k and low-overhead asset-light franchises.
The bottom line
The true cost of buying a business is the purchase price plus a layer of transaction and setup costs: legal, due diligence, stock, a lease bond, insurance and working capital. Average asking prices sit around $673,000 nationally, but there is genuine choice under $100,000, and the smartest buyers budget for the full picture, not just the advertised figure. Verify the numbers, price against real earnings, and keep a cash buffer for the early weeks.
Ready to see what fits your budget? Browse businesses for sale on Exity and filter by price, or estimate any business's value before you make an offer.
Frequently asked questions
How much does it cost to buy a business in Australia? The cost depends on size and industry, but the average asking price is around $673,000 nationally, with many businesses under $250,000 and entry-level options under $100,000. On top of the purchase price, budget several thousand to tens of thousands of dollars for legal fees, due diligence, stock, a lease bond and working capital.
What is the average price of a small business in Australia? The average asking price nationally is roughly $673,000, while the average sale price is around $595,000. Small owner-operated businesses often sell for well under $250,000, and prices vary by location, with Sydney averaging around $550,000. Price tracks a business's profit rather than its turnover.
Do you pay stamp duty when buying a business in Australia? In most Australian states and territories, stamp duty on business assets such as goodwill and plant has been abolished, so on a typical business sale you often pay little or none. However, stamp duty can still apply if the sale includes land or real property, and rules vary by state, so confirm with your accountant or solicitor.
How are businesses priced for sale? Most small businesses are priced at a multiple of their adjusted annual profit (SDE), usually around 1.5 to 3 times, with larger businesses priced on an EBITDA multiple. The multiple rises with strong profit, growth, recurring revenue and low owner-dependence. Asset-heavy businesses also factor in equipment value plus goodwill.
What extra costs should I budget for when buying a business? Budget for legal and contract fees (around $3,000 to $15,000), due diligence and accounting (around $2,000 to $10,000), stock at valuation, a lease bond of one to three months rent, insurance and setup, and a working capital buffer. In most states there is little or no stamp duty on business assets unless land is included.
