However, competition is increasing, and understanding current valuation trends, financing shifts, and hidden opportunities will be important if you want to secure the best deals in the second half of 2025.
At LINK Business, we’ve put together the key insights every buyer needs to know to navigate this EOFY period and beyond.
Falling Interest Rates: A New Era for Financing and Valuations
After years of high borrowing costs, the Reserve Bank of Australia’s easing of interest rates in 2025 is creating renewed confidence in the SME market. Access to cheaper finance is helping serious buyers expand their horizons and, in some cases, move faster on larger acquisitions they may not have previously considered.
This shift is starting to push business valuations upwards. Lower lending costs improve affordability, which increases buyer demand — and history shows that rising demand often leads to higher sale prices.
Right now, valuations are still relatively stable, but momentum is building. Buyers looking to take advantage of current conditions would be wise to act during this EOFY window or early in the new financial year, before competition drives prices higher.
Tip: If you are planning to buy, securing finance pre-approval before 30 June could strengthen your position considerably. Sellers appreciate certainty, and a buyer with ready finance always stands out.
Understanding the Upcoming Regulatory Changes in Australia
Looking ahead to 2026, Australia is set to introduce a series of regulatory changes that will influence how business transactions are conducted. These reforms are expected to focus on areas such as data protection, enhanced due diligence requirements, and greater transparency around ownership structures.
The intention behind these changes is to further strengthen market standards and ensure that both buyers and sellers operate within a more robust and secure framework. While the full details are still being finalised, it is anticipated that these measures will add new layers of compliance to the transaction process.
For those active in the market, being informed about these developments is essential. Whether you are planning to buy this year or next, understanding how the landscape is evolving will help you to better prepare for the requirements of future transactions.
Hidden Opportunities: Buying Before and After EOFY
Timing your purchase around the end of the financial year can unlock several hidden advantages that aren’t always immediately obvious.
Before EOFY:
Leading up to 30 June, many business owners are motivated to finalise transactions, often aiming to settle within the current financial year for tax planning reasons. This can create opportunities for buyers to negotiate favourable terms, including settlement flexibility, inventory adjustments, or transitional support arrangements. Additionally, financial records are typically finalised at EOFY, giving buyers access to up-to-date, fully reconciled figures, making due diligence clearer and faster.
After EOFY:
In the new financial year, businesses often present with refreshed accounts, clean balance sheets, and, in many cases, a full 12 months of trading history that reflects post-pandemic market conditions. Sellers may also be more willing to discuss creative deal structures, such as earn-outs or deferred payments, particularly if they are planning exits in response to upcoming regulatory changes.
There is also often a wave of new listings early in the financial year, expanding the pool of options for buyers looking to make a strategic acquisition.
Tip: Whether you are looking to buy before 30 June or shortly after, staying active in the market now ensures you are ready to take advantage of these timing-driven opportunities as they arise.
Common Buyer Mistakes and How to Avoid Them
Even in a market full of opportunity, some common mistakes are costing buyers dearly:
- Waiting Too Long: In a rising market, hesitation often results in missed opportunities. Good businesses are selling faster, particularly as EOFY activity increases.
- Overlooking Adjusted Earnings: Failing to properly understand add-backs and normalisations can mean overpaying or walking away from solid businesses.
- Misjudging Working Capital Requirements: Lower interest rates help acquisitions, but businesses still need day-to-day operating cash. Factor this into your planning.
- Not Building Broker Relationships: Many quality businesses are sold before they are widely marketed. Brokers prioritise buyers who are engaged and responsive.
Be methodical, but act decisively when you find the right opportunity. Having your finance, legal, and due diligence partners lined up now, before EOFY, will give you a serious edge.
Ready to Buy Before EOFY or Straight After? Talk to LINK.
At LINK, we work closely with serious buyers to identify outstanding opportunities. Our brokers have real-world industry knowledge, local insights, and access to Australia’s most extensive network of businesses for sale.
If you want to secure the right business in 2025, now is the time to act.
Get in touch today for a confidential conversation, and let’s make 2025 your year for growth.
