Is stock included in the sale price?

Normally not. Stock is valued and paid for separately at settlement, usually by an independent stocktaker, with aged or unsellable items discounted or excluded. Agreeing the basis up front prevents the most common late argument.

What if my shop is in a shopping centre?

Centre landlords run a formal approval process for assignments and generally require financial information and guarantees from the buyer. It takes longer than a private landlord and is worth starting early, because it sits entirely outside your control.

What is make-good and does it affect my sale?

It is the obligation to restore the premises at the end of the lease, often to base condition. It can be a substantial cost, and buyers will factor it into what they pay. Knowing the figure before you market the business puts you in a better position than discovering it in negotiation.

Do my brand agencies transfer with the business?

Not automatically. Agency and distribution rights are often granted to you personally as the operator and commonly need the supplier to approve a new owner. Where those brands drive your revenue, confirm the position before going to market.

Selling a Retail Business in Australia

Retail businesses sell for 1× to 2× EBITDA, most often between $80,000 and $400,000, and take around 60 to 120 days. The multiples are the lowest of any sector we cover, and the lease is the single largest factor in whether a sale happens at all.

If you own a retail shop, this page covers what yours is likely worth, how your lease and stock affect the number, and what buyers examine before they make an offer.

Typical multiple: 1× - 2×
Typical sale price: $80k–$400k
Time to sell: 60–120 days
Buyer demand: Moderate

What retail businesses sell for

The headline range is 1× - 2× EBITDA, but where you land inside it depends heavily on the size of the business. Larger businesses attract higher multiples, because buyers see less risk and more management depth.

Annual EBITDA	Typical multiple
Under $100k	0.8× – 1.8×
$100k – $250k	1.2× – 2.4×
$250k – $500k	1.6× – 3×
$500k – $1M	2.2× – 4×
$1M – $2.5M	3× – 5×
$2.5M – $5M	3.8× – 6.5×
$5M – $10M	5× – 8×
$10M+	6× – 10×

The reason retail sits at the bottom of the multiple range is that buyers are pricing in structural pressure from online competition. Retailers who have built a genuine online channel, or who hold a niche that is difficult to replicate, are valued differently to those depending purely on passing trade.

How long it takes to sell

Sixty to one hundred and twenty days, and as with hospitality the constraint is usually the landlord rather than the buyer. Lease assignment requires consent, and shopping centre landlords in particular run their own approval process with their own timeframes. Starting that conversation before you go to market is worth more than any other preparation step.

The five things buyers pay for

Lease length & location quality

Buyers want three to five years of secure tenure, either remaining term or options to renew. A short lease with no option is the most common reason a profitable shop does not sell, because the buyer cannot recover their investment inside the term they are certain of. Location quality is assessed alongside it: neighbouring tenants, centre performance and what is opening or closing nearby.

Stock value at completion

Stock is normally paid for on top of the sale price and counted at settlement, which means the basis for valuing it needs to be agreed early. Aged, damaged or unsellable stock is discounted or excluded, and disagreement about what qualifies is the most common late dispute in retail transactions.

Gross margin percentage

Gross margin says more about the business than turnover does. Buyers examine your margin against the category norm, how much of your revenue comes from marked down goods, and whether margin has been sacrificed to hold volume. A shop discounting its way to its revenue figure is worth less than a smaller one holding full margin.

E-commerce presence

An established online channel widens the buyer pool and lifts the multiple, because it demonstrates the business is not wholly dependent on foot traffic. Buyers look at what share of revenue it represents, whether it is genuinely profitable after fulfilment costs, and whether it is your own store or a marketplace presence.

Branded vs. generic product range

Exclusive brand agencies and distribution rights can be the most valuable thing you hold, or the most fragile. Where you carry brands under an agency arrangement, those rights are often personal to you as the operator and may require the supplier to approve a new owner. That should be confirmed before the business is marketed.

Lease, stock and supply agreements

Most retail sales are an assignment of the existing lease, which requires the landlord to consent. Retail leases are governed by state legislation that imposes disclosure obligations and, in some states, minimum terms, so the process has formal steps rather than being a private arrangement. Shopping centre landlords typically require financial information about the buyer and run a longer approval process than a private landlord.

Make-good obligations sit inside most retail leases and are frequently overlooked until late in a sale. Where the lease requires the premises to be restored at the end of the term, that liability affects what a buyer is prepared to pay, so it is better to quantify it early than to have it raised as a price reduction during negotiation.

Stock at valuation is paid separately from the business price and counted at settlement, usually by an independent stocktaker. Supply and agency agreements need separate attention, because distribution rights commonly require supplier consent to continue under new ownership and are not simply part of the business you are selling.

What buyers will ask for

Lease term, options and make-good. Years of secure tenure, whether the landlord will consent to an assignment, and what restoration obligation sits at the end of the term.
Stock ageing and turn. How quickly stock moves, what has been sitting unsold, and the basis on which it will be valued at settlement.
Gross margin and discounting. Margin against the category norm and how much revenue depends on marked down goods.
Supplier and agency agreements. Which brands you carry, on what terms, and whether those rights survive a change of ownership.
Online revenue share. What proportion of sales comes from online, and whether it is profitable once fulfilment is accounted for.

Common questions

Is stock included in the sale price?: Normally not. Stock is valued and paid for separately at settlement, usually by an independent stocktaker, with aged or unsellable items discounted or excluded. Agreeing the basis up front prevents the most common late argument.
What if my shop is in a shopping centre?: Centre landlords run a formal approval process for assignments and generally require financial information and guarantees from the buyer. It takes longer than a private landlord and is worth starting early, because it sits entirely outside your control.
What is make-good and does it affect my sale?: It is the obligation to restore the premises at the end of the lease, often to base condition. It can be a substantial cost, and buyers will factor it into what they pay. Knowing the figure before you market the business puts you in a better position than discovering it in negotiation.
Do my brand agencies transfer with the business?: Not automatically. Agency and distribution rights are often granted to you personally as the operator and commonly need the supplier to approve a new owner. Where those brands drive your revenue, confirm the position before going to market.

Find out what your business is worthFree valuation tool. Five questions, indicative range.Talk to a broker confidentiallyA 30-minute strategy call. No obligation.

Other industry guides

See all industries and multiples

Before you sell

Is My Business Ready to Sell?The ten things buyers check before they make an offer, and what a strong answer looks like.
How Long Does It Take to Sell a Business?Time to sell by industry, the preparation timeline before listing, and what causes delays.
How to Sell a Business ConfidentiallyWhat actually leaks, how a confidential sale is controlled, and when to tell your team.

Last updated September 2026