Interest Rates Are Up — What This Means for Business Owners Considering a Sale
Following the latest interest rate increase by the Reserve Bank of Australia, many business owners are questioning whether now is still the right time to sell. The answer is yes — provided your business is priced and positioned correctly. Interest rate rises don’t stop business sales. They change how buyers assess risk, value and opportunity.
How buyer behaviour has shifted
In a higher interest rate environment, buyers become more analytical and numbers-driven.
We are seeing increased focus on:
cash flow and sustainability of earnings
true underlying profit and add-backs
clarity around costs, margins and staffing
risk exposure and funding assumptions
Buyers are still attracted to growth, but potential must be realistic, measurable and supported by data. Clear pathways to upside — without excessive risk — remain highly appealing.
Why pricing matters more than ever
Correct pricing is critical in today’s market.
Businesses priced too optimistically tend to:
sit on the market longer
attract fewer qualified buyers
face stronger negotiations later
Well-priced businesses, by contrast, build confidence, generate momentum and often achieve better outcomes. Pricing isn’t about discounting — it’s about aligning performance, opportunity and market expectations.
Buyers are cautious — but still active
Buyers are avoiding uncertainty and unsupported projections. What they are actively seeking are businesses with:
stable earnings
transparent financials
systems and structure beyond the owner
credible growth opportunities
Strong businesses continue to transact, even in tighter conditions.
How Absolute Business Brokers supports sellers
At Absolute Business Brokers, we help business owners navigate changing market conditions with clarity and confidence. We focus on realistic pricing, strategic positioning and deal structures that reduce buyer risk while protecting value. Interest rate rises refine the market — they don’t remove opportunity. With the right advice and preparation, business owners can still sell successfully and on their terms.