Do my customer contracts automatically transfer to a buyer?

Not necessarily. It depends on the assignment and change of control clauses in each agreement, and some require customer consent. This is worth reviewing before you go to market, because it materially affects both price and structure.

Is the factory included in the sale?

Often not. Where the owner holds the property personally or in a separate entity, the business and the premises are usually treated as two transactions with a lease put in place between them. Some buyers want both, others prefer to lease.

Why does manufacturing take so much longer to sell?

The due diligence is simply broader. Plant valuation, contract review, workforce entitlements and environmental assessment all take real time, and several of them cannot run in parallel.

What happens to employee entitlements at settlement?

Accrued leave and long service leave are normally accounted for through a price adjustment, with the buyer recognising the transferred entitlements. In a long-established manufacturer these figures can be significant, so they should be quantified early.

Selling a Manufacturing Business in Australia

Manufacturing businesses sell for 2× to 4× EBITDA, most often between $500,000 and $5 million. They take 120 to 240 days, among the longest of any sector, because due diligence covers plant, contracts, workforce and the site itself rather than the accounts alone.

If you own a manufacturing business, this page covers what yours is likely worth, why these sales take longer than most, and what buyers examine before they commit.

Typical multiple: 2× - 4×
Typical sale price: $500k–$5m
Time to sell: 120–240 days
Buyer demand: Moderate

What manufacturing businesses sell for

The headline range is 2× - 4× EBITDA, but where you land inside it depends heavily on the size of the business. Larger businesses attract higher multiples, because buyers see less risk and more management depth.

Annual EBITDA	Typical multiple
Under $100k	0.8× – 1.8×
$100k – $250k	1.2× – 2.4×
$250k – $500k	1.6× – 3×
$500k – $1M	2.2× – 4×
$1M – $2.5M	3× – 5×
$2.5M – $5M	3.8× – 6.5×
$5M – $10M	5× – 8×
$10M+	6× – 10×

Manufacturing is where the gap between an asset-heavy business and a profitable one shows up most clearly. A factory full of equipment is not the same as a business, and buyers price on earnings. What the plant does is set a floor under the value, not lift the multiple.

How long it takes to sell

One hundred and twenty to two hundred and forty days reflects the breadth of due diligence rather than any shortage of buyers. An acquirer is examining supply contracts, an independent plant valuation, workforce entitlements, safety history and often an environmental report on the site. Each of those can surface something that needs resolving, and several run sequentially rather than in parallel.

The five things buyers pay for

Long-term supply contracts

Long-term supply agreements are the strongest single lever, because they convert a manufacturer from a job shop into a business with visible forward revenue. Buyers read the terms closely, particularly the notice periods, pricing mechanisms and whether the agreement survives a change of ownership.

Plant & equipment condition

Buyers commission an independent valuation rather than accepting your book value. What they assess is remaining useful life, maintenance history and whether the plant can meet current volumes without immediate capital expenditure. Well-maintained older equipment with complete service records often prices better than newer equipment with none.

Proprietary products or IP

Proprietary products, patents, registered designs and tooling are what separate a manufacturer from a contract producer, and they support the top of the multiple range. One thing that surprises sellers regularly: where customers supplied the tooling or moulds, those often belong to the customer rather than to you, and that becomes clear during due diligence.

Skilled and retained workforce

Skilled trades are scarce and expensive to replace. A buyer is assessing whether the workforce stays, what your enterprise agreement or award obligations are, and what accrued entitlements sit on the balance sheet. Long service leave provisions in a long-established business can be substantial and are adjusted for at settlement.

Export market potential

Export capability broadens the buyer pool considerably, particularly to overseas acquirers seeking an Australian manufacturing base. Buyers look at certifications, freight arrangements and how concentrated the overseas revenue is across customers and countries.

Contracts, plant and site obligations

Customer contracts are the first thing an acquirer examines, because many contain change of control provisions. A supply agreement that allows the customer to terminate or renegotiate when the business changes hands is worth far less than one that transfers cleanly, and it can reshape the entire deal. Reviewing your own agreements before going to market is worth doing early.

Plant and equipment need a current asset register showing age, condition, service history and any finance owing. Chattel mortgages and equipment leases are common in this sector and have to be discharged or assumed at settlement. Where tooling belongs to a customer, that should be identified up front rather than discovered.

Site and environmental obligations carry more weight in manufacturing than anywhere else. Long-occupied industrial sites can involve contamination questions, and buyers frequently require an environmental assessment before proceeding. Any licences relating to emissions, discharge or waste need to be current and transferable. This is the issue most likely to delay or reprice a manufacturing deal.

What buyers will ask for

Supply contracts and change of control terms. Length, pricing mechanism, notice periods, and whether each agreement survives a change of ownership.
Asset register and maintenance records. Age, condition and service history of major plant, plus any finance still owing against it.
Environmental and site condition. Contamination history, current licences, and whether an environmental assessment has been carried out.
Workforce, agreements and entitlements. Skilled staff retention, award or enterprise agreement obligations, and accrued long service leave.
Inventory and work in progress. How raw materials and finished goods are valued at settlement, and what obsolete stock is carried.

Common questions

Do my customer contracts automatically transfer to a buyer?: Not necessarily. It depends on the assignment and change of control clauses in each agreement, and some require customer consent. This is worth reviewing before you go to market, because it materially affects both price and structure.
Is the factory included in the sale?: Often not. Where the owner holds the property personally or in a separate entity, the business and the premises are usually treated as two transactions with a lease put in place between them. Some buyers want both, others prefer to lease.
Why does manufacturing take so much longer to sell?: The due diligence is simply broader. Plant valuation, contract review, workforce entitlements and environmental assessment all take real time, and several of them cannot run in parallel.
What happens to employee entitlements at settlement?: Accrued leave and long service leave are normally accounted for through a price adjustment, with the buyer recognising the transferred entitlements. In a long-established manufacturer these figures can be significant, so they should be quantified early.

Find out what your business is worthFree valuation tool. Five questions, indicative range.Talk to a broker confidentiallyA 30-minute strategy call. No obligation.

Other industry guides

See all industries and multiples

Before you sell

Is My Business Ready to Sell?The ten things buyers check before they make an offer, and what a strong answer looks like.
How Long Does It Take to Sell a Business?Time to sell by industry, the preparation timeline before listing, and what causes delays.
How to Sell a Business ConfidentiallyWhat actually leaks, how a confidential sale is controlled, and when to tell your team.

Last updated September 2026