CASE STUDY
Sale of a Long-Standing Fire Protection Services Business in WA.
Transaction Managed by Morgan Business Sales
Overview
Business: Fire Protection Services Provider
Industry: Construction Services
Location: Perth, WA
Size: Revenue: $4.6M
EBITDA: $1.38M
Staff: 13
Years in Business: 15
Lead Broker: Glenn Prunster
Morgan Business Sales was engaged by the owner of a long-standing fire protection services provider in Perth to manage the sale of the business as the owner sought a retirement exit.
Objective
Wanting to retire, our client sought a full exit after a long career in the industry. With no family succession plan in place, selling the business was the most suitable option to secure his future.
The vendor chose Morgan Business Sales following discussions with several brokers, ultimately selecting the firm due to its proven systems, processes, and expertise in managing complex mid-market transactions. The objective was to secure a buyer who could continue the business’s legacy and ensure a smooth transition for staff and clients.
Summary
Despite challenges around project-led revenue and key man risk, Morgan Business Sales executed a strategic sale process, positioning the business for a targeted buyer pool and achieving a final sale price of approximately $4.4M. The deal was completed in six months, a strong result given the business’s unique structure and market conditions. This business sale case study demonstrates Morgan Business Sales’ expertise in navigating complex mid-market transactions and delivering successful outcomes for business owners.
Challenges
Before engaging Morgan Business Sales, the business faced the following challenges:
1
Revenue was largely project-led, with only a small portion recurring, creating uncertainty for buyers.
2
The owner held all major client relationships, presenting significant key man risk.
3
No general manager was in place, requiring the buyer to appoint leadership.
4
The transaction was initially structured as an asset sale; however, a price gap of approximately $300k remained. By restructuring the deal as a share sale, the buyer avoided around $250k in WA stamp duty, enabling the parties to bridge the pricing gap. A transaction liability insurance policy was put in place to protect both parties against potential liabilities associated with a share sale.
These factors demanded a highly strategic sale process, with robust due diligence, tailored marketing, and careful negotiation to overcome deal-breakers.
Strategy & Approach
Our team implemented a multi-faceted, professional approach to ensure a smooth, high-value transaction:
Valuation & Advisory
Conducted a detailed appraisal focusing on project strength and potential for recurring revenue. Adjusted financials to highlight true future maintainable earnings, supporting a premium valuation.
Confidential Marketing
Created a comprehensive Confidential Information Memorandum (CIM) emphasising the business’s project portfolio, government accreditation, and reputation. Distributed to a curated list of pre-qualified buyers only.
Buyer Targeting & Outreach
Combined Morgan Business Sales’ proprietary national buyer database with comprehensive subscription-based external databases to identify and engage buyers with relevant industry experience and financial capacity. Prioritised strategic and complementary buyers, including horizontal acquirers seeking to expand in Western Australia. The business was additionally promoted on major business-for-sale platforms to maximise market visibility.
Negotiation & Deal Management
Facilitated a competitive expressions-of-interest process and guided all parties through due diligence and negotiations. Resolved a significant price stalemate by restructuring the deal as a share sale, delivering material stamp duty savings and securing transaction liability insurance, enabling a smooth and successful completion.
Tools & Processes
- Standardised valuation framework: Used consistent appraisal models to assess future maintainable earnings and highlight project versus recurring revenue.
- CIM-PRO platform: Utilised CIM-PRO to generate a professional web-based CIM, manage buyer workflows, and virtual data room for streamlined due diligence and document control.
- Digital Marketing Suite: Deployed email marketing, marketing automations, social media, and online advertising across business‑for‑sale platforms and targeted channels to reach qualified buyers efficiently.
- Centralised CRM & buyer scoring: Tracked enquiries, profiled buyers, and prioritised high-fit strategic and adjacent-industry acquirers.
- Structured due diligence process: Applied templated checklists and task tracking to keep both parties aligned, minimise delays, and ensure no key risk areas were overlooked.
Final Result
Final Sale Price: ~$4.4M
Buyer Type: Adjacent industry buyer (large electrical contractor)
Timeline: 6 months from start to completion, with 85 days on market
Value Creation: Sale price reflected the business’s project strength and reputation, not just EBITDA multiples. The buyer was able to integrate the offering into their existing client base, creating synergies and growth opportunities.
Morgan Business Sales’ targeted approach secured a successful exit despite the business’s project-led revenue and key man risk.
Key Insights
Industry Trends & Buyer Demand
Adjacent industry buyers, particularly electrical contractors and facilities management groups, show strong interest in fire protection services for horizontal integration and service expansion. Project-led businesses face limited buyer pools compared to recurring revenue models, with 80-90% of traditional buyers excluded due to key man risk and revenue fragility.
Valuation Multiples & Market Behaviour:
Valuation multiples for project-led construction services typically range from 2.5–3.7x EBITDA asset equivalent, significantly lower than recurring revenue businesses that can achieve 4–5x multiples. Strategic deal structuring (asset vs share sale) and transaction liability insurance can bridge valuation gaps and overcome buyer risk concerns.
Strategic Takeaways for Business Owners
Build recurring revenue streams early – project-only models lose significant value at sale. Engage experienced brokers who understand post-sale tax mechanics and can navigate asset vs share sale complexities. Long-term owners without succession plans should prioritise businesses with institutionalised client relationships over owner-dependent revenue.
Market Takeaway
Demand stays strong for facilities management services among strategic buyers building bigger service packages, with recurring revenue businesses achieving 4–5x EBITDA multiples. Adjacent-industry buyers target Western Australia’s infrastructure projects, but project-only businesses sell at lower multiples (2.5–3.7x EBITDA) when they rely heavily on the owner’s personal relationships and lack a strong management team.
About Morgan Business Sales
Morgan Business Sales is Australia’s leading mid-market business sales firm, specialising in M&A transactions across a wide range of industries including civil, construction, manufacturing, healthcare, technology, education, transport, and more.
With over 100 years’ of combined experience across thousands of successful transactions, our team helps business owners achieve maximum value when exiting or expanding through acquisition.
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Request a confidential call with one of our expert brokers today and explore what a successful exit could look like for your business.
