Insights for owners and advisers of industrial businesses
How valuers look at plant, working capital, customers, contracts and earnings in manufacturing, engineering, logistics and mining services businesses.
Manufacturing
- How to value a manufacturing businessA manufacturing valuation is a sequence of tests, not a multiple. This guide follows the order a valuer works in, from defining what is being valued to the bridge from enterprise value to the value of the shares.
- How working capital affects a manufacturing business valuationStock, work in progress, debtors and creditors: how a valuer sets normal working capital for a manufacturer, and how a working capital target and completion accounts turn the valuation into the price actually paid.
Engineering
Logistics
Mining Services
Business Sales
Valuation Methods
- Manufacturing business valuation multiples in AustraliaOwners often ask what multiple a manufacturing business sells for. The multiple is an output of risk and growth, not an industry constant. This article explains what moves it, why headline figures travel badly, and how buyers and valuers test the number.
- How plant and equipment affects business valueMachinery is often the largest asset on an industrial balance sheet, yet it rarely adds its own value to the business. This article explains where plant sits in a valuation, when its realisable value takes over, and how surplus items and finance are treated.
- EBITDA vs EBIT when valuing an industrial businessThe gap between EBITDA and EBIT is where an industrial business keeps its machines. Why it matters to value, how AASB 16 lifts reported EBITDA, and how valuers set a maintainable capex allowance.
Short answers to common valuation questions
Need one question answered rather than a full guide? Each answer gives the short version first and links to the guide behind it.
- How much is my manufacturing business worth?A manufacturing business is usually worth the earnings it can sustain, after a realistic allowance for replacing its plant, capitalised at a rate...
- How much is a 3PL business worth?There is no standard price or multiple for a 3PL. It is worth its maintainable earnings after rent and wages, capitalised at a rate set by how secure...
- How is a trucking or transport company valued?A trucking company is valued on the earnings left after properly funding its fleet, not on EBITDA or the resale value of its trucks. The biggest...
- How much does a business valuation cost for a manufacturer or logistics company?The fee is fixed by annual turnover, not charged by the hour. Turnover under $2 million: From $1,495 + GST. Turnover $2 million to $10 million: From...
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