What is your business worth?
Business valuation for South African owners — built to the standard a buyer's advisors will test, by principals who negotiate the deals that follow.
How business valuation works
A credible valuation rests on one of three methods, chosen to fit the business:
- Earnings-based — a multiple applied to normalised EBITDA or profit. The most common approach for profitable trading businesses. The multiple reflects sector, growth, risk and quality of earnings.
- Discounted cash flow (DCF) — the present value of the business's projected future cash flows. Right for businesses whose value lies in future growth rather than current earnings.
- Asset-based — net asset value, used for asset-heavy or property-holding businesses, or as a floor.
A rule-of-thumb "multiply revenue by X" is not a valuation — it ignores everything that actually determines worth, and no serious buyer accepts it.
What drives your number up or down
Two businesses with identical revenue can be worth very different amounts. The variables that move the number: earnings quality (recurring, contracted income beats once-off project work), customer concentration (dependence on one or two clients is a discount), management depth (a business that runs without the owner is worth more than one that doesn't), clean financials, growth trajectory, and — critically — strategic value to a specific buyer. That last one is why a valuation is a range: a strategic buyer who needs your market position pays a premium a financial buyer won't.
Valuation and the sale price
A valuation establishes defensible worth. The sale price is what a buyer actually pays — and a well-run competitive process can push it above the valuation by putting the right strategic buyers in contention. The valuation is the evidence base you negotiate from; the process is what realises the premium. If you are heading toward a sale, the two connect directly. Selling your business →
Why a principal-led valuation
The valuation that matters is the one that survives a buyer's due diligence and holds up in negotiation. Caban's valuations are built by people who negotiate deals, not just model spreadsheets — principals who know which assumptions a buyer's advisors will attack and how to defend the number. Since 2012 the firm has executed more than 200 transactions across valuations, raises, M&A and advisory, with deep African market knowledge.
When you need one
A formal valuation is essential before a sale, a shareholder buyout, raising capital, a management buyout, or a succession plan — any moment where the number has to be right and defensible. Start a valuation conversation below.
Questions, answered
How do I value a business in South Africa?
Through a proper valuation methodology, not a rule-of-thumb revenue multiple. The main approaches are earnings-based (a multiple of normalised EBITDA or profit), discounted cash flow (the present value of future cash flows), and asset-based. The right method depends on the business — and the number is a defensible range, not a single figure.
What is my business worth?
It depends on far more than revenue: earnings quality, recurring versus once-off income, customer concentration, management depth beyond the owner, growth trajectory, and strategic value to a specific buyer. The same business can be worth 4x earnings to a financial buyer and 7x to a strategic one who needs its market position.
How much does a business valuation cost in South Africa?
A formal valuation typically ranges from around R15,000 for a straightforward business to R80,000+ for a complex or transaction-grade valuation requiring detailed modelling and defensibility. The purpose — internal planning versus a valuation that must withstand a buyer's scrutiny — drives the cost.
What is the difference between a valuation and a sale price?
A valuation establishes a defensible worth; the sale price is what a specific buyer actually pays, which a competitive process can push above the valuation. A valuation is the starting evidence base — running a proper process to find the buyer who pays a strategic premium is what realises the higher number.
Why do I need a professional business valuation?
Because overpricing scares buyers away and underpricing costs you millions, and no serious buyer commits without verified numbers. A professional, defensible valuation — built by people who negotiate deals — gives you the evidence to hold your price in negotiation and the credibility a buyer's advisors will test.