Brisbane Business Broker Brendan Morgan has sold a number of Powder Coating businesses. We recently caught up with him to discuss the ins and outs of selling one of these operations. He had some great takeaways for owners contemplating selling their business such as:

Important Consideration – Location Security

Parties interested in acquiring power coating business pay keen interest to how secure the premise that the business operates from is. They’re looking for either a long lease or a freehold so that they can have a disruption free first few years of trading as they recuperate their investment. It’s important that sellers secure their facility before going to market.

Sale Price Maximisation – Plant & Equipment

Especially for larger operations, the value of plant & equipment can make up a significant portion of the business sales price. For this reason, potential acquirers run a fine tooth comb over plant. Owners can maximise their sales price by showcasing a thorough maintenance and care program to interested parties.

Important Consideration – Environmental Standards

Before parting with their money, prospective investors will check that equipment like dip tanks are meeting the required local council environmental standards. Before going to market, it is important that sellers ensure they are compliant and have these records easily accessible for perusal.

Buyer Demand

In all of Brendan’s recent powder coating listings, he has experienced bidding wars. This is an industry with particularly strong buyer demand. Brendan puts this down to a few things.

Firstly, the profitability. Powder coating businesses typically have an attractive margin. Secondly, the simplicity. Powder coating operations don’t require deep technical knowledge which broadens the buyer pool. And thirdly, the vendor contribution. Running a powder coating operation is commonly quite attractive compared to other business types. It can often be Monday to Friday and indoor only. It’s not comparatively difficult to find staff and the owner’s role is typically overseeing only. All ticks for discerning buyers.

Do you have a powder coating business that you are thinking of taking to market? Click here to book a complementary consultation with a market expert.