A strategic guide to maximising buyer appeal and business valuation
When preparing a business for sale in Australia, many owners focus on cleaning up financials, systematising operations, and reducing owner dependency. However, a less obvious but equally powerful lever is your market positioning and pricing strategy. How your business is perceived in the marketplace, and how it prices its products or services, can directly influence both the quality of buyers you attract and the final sale price you achieve.
This article outlines how to assess, refine, and leverage your market positioning and pricing to support a successful sale.
Buyers are not just acquiring your current revenue and assets. They are also investing in your brand, market perception, and pricing power. A business that has carved out a clear position in the market and charges accordingly is seen as more resilient, scalable, and defensible. In contrast, businesses that compete solely on price or lack differentiation often face downward pressure on valuation and attract more price-sensitive buyers.
Before making changes, you need a clear view of how your business is currently positioned. Ask the following:
You can gather insights through customer surveys, online reviews, competitor research, or discussions with industry contacts.
Not all buyers are looking for the same type of business. Strategic buyers may pay more for a brand that owns a niche, dominates a location, or commands loyalty in a high-margin category. Private buyers may look for something with consistent cash flow and clear growth potential. Your goal is to align your positioning with the type of buyer who will value it most.
For example, if your business is positioned as a local specialist with unmatched service, highlight this in your sale documents, and consider how your pricing supports that claim.
Your pricing strategy is a direct signal of your positioning. Low prices can suggest cost-efficiency or commoditisation. Premium prices can signal quality, exclusivity, or brand strength. Review your pricing structure and ask:
Businesses that can justify their pricing through results, service levels, or customer satisfaction are often seen as more valuable.
If your business is not positioned where you want it to be, consider making adjustments before going to market. This might include:
Even small changes in how you present your offering can significantly shift buyer perception and sale outcomes.
When it comes time to negotiate, your positioning and pricing strategy can help justify your valuation. For example, if you charge 20 percent more than your competitors and maintain high retention, this demonstrates pricing power and brand loyalty. Similarly, if your niche market has high barriers to entry or you dominate a geographic region, that defensibility adds value.
Be ready to explain your positioning and how it supports profitability, growth, and customer stickiness in your Information Memorandum or buyer meetings.
Some common mistakes when preparing for sale include:
A clear, focused positioning strategy helps eliminate confusion and makes your business easier to evaluate.
Business Type: Gourmet Ready-Meals Brand Location: Inner Melbourne, VICTORIA
Background
The business had strong local distribution, a growing online presence, and an excellent reputation — but it had priced itself as a mid-market competitor. Revenue was growing, but margins were tight, and competitors were entering the space with premium branding and pricing.
Action Taken
Over a 12-month lead-in:
The brand was repositioned as a premium, health-focused offering
Pricing was increased by 18% across key product lines, with no loss in volume
The website and packaging were updated to reflect the new positioning
A Net Promoter Score survey was introduced to showcase high customer satisfaction
A formal brand strategy and marketing plan were included in the sale documents
Result
The repositioning helped attract multiple buyers from the health food and FMCG sectors. The business sold at a higher valuation multiple (4.2x EBITDA) than other similar-sized food producers, with the buyer citing "premium brand perception and upward pricing flexibility" as key reasons for their acquisition.
Market positioning and pricing are not just marketing concepts, they are key drivers of buyer perception and business valuation. By defining a clear value proposition, aligning your pricing with that value, and communicating it consistently across your brand, you can command more interest and achieve a stronger outcome at sale.
Before listing your business, speak with a business broker or advisor to assess how your current market positioning aligns with buyer expectations and what improvements can be made to maximise value.
