$650K EBITDA NATURAL STONE SUPPLY BUSINESS SOLD AT 3.8X MULTIPLE TO PRIVATE INVESTOR / OPERATOR

VBA was engaged to advise on the strategic sale of a long-established natural stone supply business servicing the premium residential and commercial construction market. Operating within a specialised segment of the building materials industry, the business had established a strong reputation among architects, interior designers, builders and high-end residential clients through its curated product range, established supplier relationships and long-standing industry presence.

The shareholders sought a confidential and structured exit process that would maximise transaction value while ensuring operational continuity, staff stability and the preservation of key customer and supplier relationships. Given the scale of inventory holdings, the complexity of the operating structure and the premium positioning of the business within the market, the transaction required a highly targeted buyer engagement strategy and careful management throughout the sale process.

VBA developed and executed a strategic campaign targeting private investors, strategic acquirers and experienced operators already active within construction supply, importation and building products sectors. The campaign generated substantial market engagement, attracting more than 58 buyer enquiries nationally. Following qualification and screening procedures, approximately 40 buyers progressed to executed Confidentiality Agreements, with 18 qualified parties receiving the Information Memorandum and entering detailed discussions with management.

The level of buyer activity reflected the quality of the underlying business fundamentals, including its strong market reputation, premium client base, repeat referral network, established operational systems and long-standing supplier relationships. Significant interest was also generated by the business’ scalability, growth potential and defensible positioning within the premium stone and surface supply market.

Following a competitive negotiation and due diligence process, the business was successfully sold to a private investor/operator for $2,000,000 plus stock at value, with stock settling at approximately $540,000. Based on maintainable EBITDA of approximately $650,000, the transaction represented an EBITDA multiple of approximately 3.8x and an indicative pre-finance return on investment of approximately 26% per annum.

The transaction involved several sophisticated commercial and legal negotiation points that required careful coordination between all parties and advisors. Key contract terms included the negotiation of vendor warranties and indemnities, detailed treatment of accounting methodologies and AASB definitions relied upon during due diligence, post-completion performance incentives and a structured two-year consultancy and transition arrangement designed to support continuity and preserve goodwill following completion. Additional provisions included restraint of trade obligations, lease assignment requirements and detailed stock valuation mechanisms associated with the inventory-intensive nature of the business.

The transaction highlights the continued demand for established businesses operating within specialised construction supply sectors, particularly those demonstrating strong market positioning, operational maturity and opportunities for strategic growth under new ownership. It also reflects the importance of disciplined transaction management, buyer qualification and carefully structured negotiations in achieving successful outcomes in mid-market business sales.