What it costs to buy a manufacturing business in Australia

Manufacturing businesses on 14 live Australian listings ask from $180,000 for a powder coating shop to $3.1m for a commercial kitchen manufacturer. Brokers price them at about 1.5 to 5 times adjusted earnings, with plant included and stock paid on top. Profit, customer spread and the lease drive the price, not turnover.

A manufacturing business is priced on the profit left after the owner is paid, with the plant usually included in that price. That is why a powder coating shop with a 9.8 metre oven can be listed at $180,000 while an aluminium windows and doors manufacturer asks $2.48m. Earnings, the spread of customers, owner dependence, plant condition and whether the factory is leased or freehold move the price. This guide sets out what 14 live listings across five states ask, how brokers value a manufacturer, the costs on top, the premises and customer risks, and how it is funded.

What manufacturing businesses sell for

For the machines themselves, our CNC machine cost guide covers new and used prices. A manufacturer adds plant, stock and a factory lease to the price. Bsale puts the average asking price across its engineering manufacturer listings at $1,519,514. The table surveys 14 live listings on Bsale and LINK Business on 22 October 2026, and the middle asking price is $825,000 (our arithmetic). Figures are the vendor's, indicative market data and not Ventas offers. SAV means stock at valuation, paid on top of the price.

Three things stand out. Price follows profit, not turnover. Adelaide fencing asks $625,000 plus stock on $3.42m of sales, while the Melbourne precision engineer asks $950,000 plus stock on $1.06m. Plant is often the floor. Campbelltown is a plant-only sale with goodwill excluded, and Benchmark Business Sales says small job shops often price close to the value of their plant. And vendors publish turnover more often than profit, holding detail back until a confidentiality agreement is signed. Bsale flags some summaries as AI generated, so every figure is the vendor's and unverified. Treat the table as a list of questions to ask, not a price list.

How manufacturers are valued

Sellers quote turnover because it is the bigger number. Brokers price off adjusted earnings. For an owner-run business that is PEBITDA, which adds back one working owner's wage. For a business with a management team it means EBITDA after a market salary for every role. The first rows are one broker's published guidance, and the last row checks them against the listings.

Where price and turnover are both shown, asking prices run from about 0.18 times turnover (Adelaide fencing and the Brisbane region fabricator) to about 0.89 times (Melbourne precision engineering), a spread of almost five to one, against 1.8x to 3.1x on earnings. Earnings margins in the same listings run from about 6 per cent (Adelaide) to about 36 per cent (Sydney water jet). Labels differ too (EBITA, EBITDA, PEBITDA, adjusted net profit, seller's discretionary earnings), so ask each vendor to reconcile its figure to lodged BAS and bank statements.

Plant, goodwill and stock

The contract splits the price between goodwill, plant and stock, and the split drives duty and finance. Two listings show it.

• Perth patio fabricator: the $700,000 covers about $47,000 of stock, about $85,000 of vehicles, plant and equipment, and an implied $568,000 of goodwill, which is the listing's own split.
• Adelaide fencing: $625,000 for goodwill, plant and equipment together, with stock at valuation estimated at $35,000 on top.

Benchmark says to list plant at market value, not replacement cost, and that market value sets the floor under the price. Equipment overdue for replacement comes straight off the price, so ask for an equipment register with ages, service records and finance owing. Expect your lender to value the machines at what used plant would fetch, which can sit well below the vendor's figure.

What you pay on top of the price

The asking price is rarely the cheque. These costs sit on top, and a lender will ask you to show them.

Transfer duty depends on the state, and fixed plant is where manufacturers get caught. New South Wales does not charge duty on goodwill, stock, materials held for manufacture or goods under manufacture, but fixed plant and equipment is generally dutiable as a fixture, and a commercial lease is dutiable. Movable plant is dutiable only if the contract also includes other dutiable property such as land. Queensland charges duty on goodwill, trading stock and plant: about $13,300 on a $425,000 dutiable value ($1,050 plus $3.50 per $100 over $75,000, our arithmetic). Western Australia charges it on goodwill and on plant sold with other dutiable property. Victoria charges nothing on fixtures worth $2 million or less when you buy a business without the land. A freehold factory brings duty on the land. Get the split written into the contract and confirm with your accountant before you sign.

GST. A going concern sale can be GST-free if the buyer is registered for GST, both sides agree in writing and the seller supplies everything needed to keep operating (ATO). Otherwise 10 per cent GST applies: Campbelltown's $700,000 plus GST would add $70,000 (our arithmetic). Check which basis each listing uses.

Premises, customers and owner dependence

A factory lease decides what the business is worth and what a lender will fund. The listings show how much it varies.

Benchmark says buyers look for a secure lease or a factory they can lease or buy. Selling the business alone, with a new lease to the buyer, keeps the price within reach of more buyers. Where the factory is sold too, it is valued on earnings and property together, usually with a formal valuation. Ask for the committed term, not just the options, because lenders typically weigh it against the loan term.

Customers. Benchmark says one dominant customer cuts the multiple, and buyers want customers across several industries, written supply terms and an order book that carries the business through handover. The Melbourne precision engineer shows its spread: 73 active clients, about 10 giving regular repeat work. Aviaan Accounting adds that major contracts should be read for change-of-control clauses, because a key client can leave when ownership changes.

Owner dependence. The Melbourne metal finishing business is a working owner and two staff, and the owner offers to stay and train. The Gold Coast listing is run by its team, with the owner overseeing work weekly.

Financing a manufacturing business purchase

Lenders split a manufacturing purchase in two. Plant with a resale market, such as CNC machines, press brakes and forklifts, is funded against the equipment. Goodwill has nothing to repossess, so lenders look to property, cash and the cash flow of the business. Specialised or niche equipment that is hard to value or resell typically costs more to finance (Savvy), and some lenders decline customer-concentrated or owner-run businesses. Ventas is a finance broker, not a lender, so we do not quote rates here. They change with the lender, the security and the file.

Illustrative only, subject to lender assessment. A realistic purchase at a $1,200,000 asking price:

And how it is typically funded across lender types:

Debt here is about 41 per cent of the cash needed. Plant is the easiest layer to fund, but lenders value it on what used machinery would resell for, and anything fixed to the building resells poorly. A property-backed loan secured on your home or another property can fund the equity gap, or most of the purchase, because the lender relies on the property instead of the plant. The cost is that your property is at risk if the business fails. Vendor finance is sometimes offered, as the Mascot listing says. Once you own the plant outright, a sale and leaseback can release cash from it while the machines keep working. Check the tax treatment with your accountant.

What makes a manufacturing deal fundable:

• Trading history. Two to three years of accounts that reconcile to lodged BAS and bank statements.
• Customers and orders. A spread of customers, written supply terms and a confirmed order book.
• Plant. An equipment register with ages, service records and finance owing.
• Premises. A committed lease at least as long as the loan, or a factory you can lease or buy.
• You and the handover. Industry experience, and a vendor who stays to hand over the floor and the customers.

To get a number from Ventas, send the asking price and the vendor's split between goodwill, plant and stock, the plant list, two to three years of financials and BAS, the customer split, the lease term, and the security you can offer. Start at business acquisition finance, see manufacturing equipment finance, or read the CNC machine cost guide for plant prices. Finance is subject to lender assessment and approval.

This is general information only and not financial, credit, or tax advice. Figures are indicative market data from the sources listed, not Ventas offers, and move with the market. Consider your own circumstances and speak to a professional. All finance is subject to lender assessment and approval.

This article is general information only and not financial, credit, or tax advice. Ventas Asset Lending is a finance broker, not a lender. Approvals are subject to lender assessment. Consider your own circumstances and speak to a qualified professional, including your accountant for any tax questions.