CASE STUDY | CONFIDENTIAL INDUSTRIAL PAINTING BUSINESS SOLD TO ASX-LISTED STRATEGIC ACQUIRER

$1.042M Maintainable Business Earnings | 3.44x Effective Multiple

VBA was engaged to advise on the strategic sale of a confidential industrial painting and protective coatings business servicing major industrial and mining-related customers. Operating within a specialised segment of the industrial services market, the business had established a strong reputation for technical capability, reliable project delivery and long-standing customer relationships in an environment where safety, execution and continuity of service are critical.

The vendor’s objective was to achieve a commercially sound exit while preserving confidentiality, maintaining operational continuity and ensuring the opportunity was presented to the right type of buyer. Given the nature of the business and the quality of the underlying earnings, the transaction required careful positioning around maintainable business earnings, strategic relevance, buyer fit and transaction structure.

VBA managed a targeted sale campaign directed toward strategic and financially capable acquirers already active in industrial services, coatings, engineering and related contracting sectors. The process generated 67 buyer enquiries, with 22 qualified parties receiving the Information Memorandum. A number of other interested parties were deliberately not progressed where strategic fit, transaction capability or overall suitability were not considered strong enough.

The level of buyer engagement reflected the strength of the underlying business fundamentals, including its established market position, embedded customer relationships, experienced operational capability and clear relevance to larger industry participants seeking strategic expansion.

The transaction involved several material commercial issues requiring careful coordination, including deferred consideration mechanics, working capital treatment and broader value alignment between the parties. VBA’s role extended beyond generating buyer interest. The process required disciplined transaction management, careful handling of negotiation points and ongoing coordination between the vendor, buyer and advisors to protect value and maintain momentum through to completion.

The business was ultimately sold to an ASX-listed strategic acquirer. Based on maintainable business earnings of approximately $1,042,000, the transaction represented an effective multiple of 3.44x.

This result highlights the continued demand for established industrial service businesses with strong operating substance, credible earnings and strategic relevance to larger trade buyers. It also reflects the importance of disciplined buyer qualification, process management and careful negotiation in achieving successful outcomes in mid-market business sales.