Independent valuationsfor industrial Australia.
Industrial businesses are different. Their valuations should be too.
Independent business valuations for Australian manufacturing, engineering, logistics, mining services and industrial companies.
- Australia-wide
- Fixed-fee
- Confidential
- Independent
- Plant
- Machinery
- Inventory
- Contracts
- Cash flow
- Real value
What is an industrial business valuation?
An industrial business valuation is an independent opinion of what a manufacturing, engineering, logistics or other industrial company is worth, and why. We test the earnings against the plant, working capital, customers, contracts and people that produce them, choose the method that fits, and set out every step of the reasoning in a written report.
A factory isn't just an EBITDA multiple.
Industrial businesses often hold value the profit and loss statement does not show, and carry risks it does not show either. We look at eight components of enterprise value. None of them is added mechanically. They interact, and most of the judgement in an industrial valuation sits in how they interact.
Plant and equipment matters, but owning $3 million of machinery does not automatically add $3 million to enterprise value.
- Specialised plant and one dominant customer: if the customer leaves, the plant has few other profitable uses.
- Diversified customers on long-term contracts: revenue that is likely to stay with a new owner.
- Each arc joins two components whose value depends on the other. Enterprise value is the judgement across all of them, not their sum.
A manufacturer with highly specialised equipment and one dominant customer has a completely different risk profile from a diversified manufacturer with long-term contracts, even when last year's profit was the same. That is why specialist judgement matters.
What goes into an industrial business valuation?
Eight areas, weighted to the industry. Customer concentration dominates in contract manufacturing, fleet age in transport, certifications in defence supply.
Financial performance
What the business earns once the owner's way of running it is set aside.
- Historical revenue
- EBITDA and EBIT
- Gross and operating margins
- Owner adjustments and normalisation
- Working capital requirements
- Capital expenditure
A manufacturing company can look profitable while requiring substantial ongoing capital expenditure. That affects what a buyer is actually willing to pay.
Customers
Who pays, how reliably, and whether they stay with a new owner.
- Customer concentration
- Recurring revenue
- Contract duration
- Churn
- Pricing power
- Geographic concentration
The same big customer is a different risk on rolling purchase orders than on a supply agreement with three years to run, and a buyer prices the difference.
Operations
How the plant runs today, and what it would take to grow.
- Capacity utilisation
- Production efficiency
- Site dependency
- Labour requirements
- Operational bottlenecks
Spare capacity is worth something only if there is demand to fill it, and the bottleneck machine matters more than the plant average.
Plant and equipment
Whether the machines can keep producing the earnings, and what replacing them will cost.
- Equipment base
- Age and condition
- Replacement requirements
- Finance obligations
- Maintenance requirements
- Ownership versus leasing
Two machine shops with the same EBITDA are not worth the same if one is running ten-year-old machines due for replacement and the other has just re-equipped.
Workforce
The people the earnings depend on, starting with the owner.
- Key employees
- Technical capability
- Owner dependency
- Specialised labour
- Management depth
When the owner is also the chief estimator, a buyer prices that in until the knowledge is written down or held by someone else.
Competitive position
Why customers come back, and why competitors struggle to follow.
- Barriers to entry
- Specialist capabilities
- Customer switching costs
- Certifications
- Geographic advantages
A certification a competitor needs a year to obtain protects margin in a way a price cut never can.
Intellectual property
What the company owns that others cannot simply copy, and who really holds it.
- Patents
- Designs
- Proprietary manufacturing processes
- Software
- Engineering knowledge
- Brands and trade secrets
In private industrial companies a key design often sits with the founder personally, and tooling sometimes belongs to the customer. Value follows ownership, so we confirm it.
Industry risk
What could change the outlook however well the business is run.
- Cyclicality
- Commodity exposure
- Regulatory exposure
- Supplier concentration
- Economic conditions
Three good years of profit can hide a business tied to one resources cycle or one retailer's range review.
How we value industrial businesses
The method depends on the company. Valuation is not EBITDA multiplied by a number from a table. We choose the approach that fits the business and the purpose, test it with at least one cross-check, and explain the choice in the report.
- Capitalisation of maintainable earnings
- Where maintainable earnings can be reasonably established. The usual starting point for an established industrial business.
- Discounted cash flow
- Where future cash flows can be reliably forecast and will differ materially from history, such as a new long-term contract or a plant expansion.
- Market approach
- Transactions and market evidence, where reliable comparable information exists. Most often a cross-check.
- Asset-based approach
- Relevant in some asset-intensive businesses, holding entities and businesses being wound down.
- Hybrid analysis
- Industrial companies often need several techniques considered together, without counting the same value twice.
Industrial businesses we value
From a single-site fabrication shop to a multi-site manufacturing group. Each guide explains what moves value in that industry and what we will ask for.
- ManufacturingContract and own-product manufacturers of every size.
- EngineeringConsultancies, contract engineering and precision workshops.
- FabricationStructural steel, plate, sheet metal and general fabrication.
- Machinery and EquipmentMachinery dealers, equipment hire and repair businesses.
- Food ManufacturingFood and beverage manufacturers, co-packers and grocery suppliers.
- PackagingCarton, film, rigid plastics, labels and printed packaging.
- Mining ServicesMaintenance, shutdown, hire and specialist mine site services.
- Transport and LogisticsRoad freight, linehaul, distribution and refrigerated fleets.
- Wholesale and DistributionImporters, wholesalers and industrial distributors.
- Industrial ServicesMaintenance, inspection, lifting and plant services.
- WarehousingThird-party logistics, contract warehousing and fulfilment.
- Defence and Specialist ManufacturingDefence suppliers and specialist manufacturers.
Not sure your business fits a category? Tell us what it does and we will scope it. Describe your business
Why industrial businesses need valuations
The purpose shapes the scope, the valuation date and who can rely on the report, so we confirm it before we start.
- Business saleSelling an industrial business, or getting ready to.
- AcquisitionIndependent analysis before you buy.
- Shareholder exitThe value of a departing shareholder's interest.
- Family lawProperty settlements, prepared through our dedicated family law practice, Family Law Valuations.
- Tax and restructuringMarket value for tax, restructures and ownership changes.
- Succession planningKnowing the value before a transition or retirement.
- Deceased estatesIndependent valuations for executors and estate administration.
- Employee equityEquity participation and incentive structures.
- DisputesShareholder, partnership and commercial disputes.
- FinanceSupporting transactions and commercial decisions.
Fixed fees, priced on annual turnover
Transparent enough to plan around, without boxing a complex matter into the wrong fee. Every engagement is scoped on a call first.
We confirm the fee in writing before we start. No hourly billing.
Smaller industrial business
Annual turnover under $2 million
From$1,495+ GST
Report in 2 business days
Established industrial business
Annual turnover $2 million to $10 million
From$2,495+ GST
Report in 3 business days
Complex industrial business
Annual turnover over $10 million, or a complex structure
From$3,495+ GST
Delivery agreed before we start
Independent expert and complex matters
Disputes, litigation support, complex groups and highly specialised matters
Quoted individually
Delivery agreed before we start
Delivery time starts once payment and all required information have been received.
Each additional valuation date $495 + GST. Each additional entity $795 + GST.
From enquiry to report
A short, predictable process. Nothing starts until the scope and fee are agreed in writing.
Enquiry
Tell us the industry, the purpose, approximate turnover and your timing, online or by phone. No documents yet.
Call and fixed quote
A valuer calls to understand the business and the purpose, then confirms a fixed fee.
Engagement and payment
An engagement letter sets out the scope, valuation date, fee and the information needed. Work starts once it is accepted and paid.
Documents
You upload documents through the private link on your matter. Never by email.
Valuation and review
We analyse the business, raise questions through your matter, and send a draft for you to check the facts.
Representation letter
You sign a letter confirming the information supplied is complete and accurate.
Report
The final report is issued through the client portal.
A smaller industrial business valuation takes 2 business days and an established one 3 business days. Complex and expert matters are agreed before we start. Delivery time starts once payment and all required information have been received.
Your information stays confidential.
Documents, financial information and discussions relating to your valuation are handled confidentially.
- Documents come only through the private upload link on your matter, never by email and never through this website.
- We can sign a confidentiality undertaking before you share sensitive documents.
- If a co-owner, manager or staff member should not know a valuation is under way, tell us on the first call and we will deal only with you.
A specialist valuation partner for your industrial clients.
For accountants, lawyers and financial advisers whose clients make, move, maintain or supply things. You keep the client relationship; we provide the independent valuation.
Questions owners ask first
How much does an industrial business valuation cost?
Fees are fixed and priced on annual turnover. Smaller industrial business, turnover under $2 million: From $1,495 + GST. Established business, turnover $2 million to $10 million: From $2,495 + GST. Complex business, turnover over $10 million or a complex structure: From $3,495 + GST. Independent expert and dispute work is quoted individually. We confirm the fee in writing before we start. No hourly billing.
How long does a valuation take?
A smaller industrial business valuation takes 2 business days and an established one 3 business days. For complex and expert matters the timing is agreed before we start. Delivery time starts once payment and all required information have been received. Tell us your deadline and we will tell you on the call whether we can meet it.
Do you need to visit the factory?
Usually not. Most valuations are completed from documents and conversations. If the operation or equipment needs to be seen, we say so when scoping and agree any visit and its cost first.
Does plant and equipment increase business value?
Not dollar for dollar. When a business is valued on its earnings, the plant that produces those earnings is already inside that value. Plant matters through the capital spending it will need, the finance owing on it, and as a floor where earnings are weak. A formal plant and machinery valuation is a separate discipline done by a plant and machinery valuer; where one exists we can use it as an input. More in how plant and equipment affects business value.
Can you value an industrial business anywhere in Australia?
Yes. Valuations are completed Australia-wide, from documents and conversations, so where the business operates does not change the fee. Our locations pages cover the main industrial regions.
Can you value a business for a family law matter?
Yes. Family law matters are prepared through our dedicated family law practice, Family Law Valuations: a Settlement Valuation is $2,495 + GST and an Expert Report is $4,495 + GST. Our family law page explains how an industrial business is valued in a property settlement.
Know what your business is worth, and why.
Tell us what the business does, why you need the valuation and roughly what it turns over. A valuer will call to confirm the scope and the fee before anything starts.
- Australia-wide
- Fixed-fee
- Confidential
- Independent
Or call 0433 475 518 Mon to Fri, 9am to 5:30pm AEST