Painting Business Valuations
Independent valuations for painting businesses across Australia.
Green Standard values residential repaint, new construction, commercial, strata and specialist coatings businesses. Painting is a labour business with a light asset base, so two painters with the same profit are separated by who holds the customer relationships and whether the crews, rather than the owner, produce the work.
A business with a repeating base of strata schemes, property managers and commercial clients, crew leaders who run jobs and a pricing system that holds margin is a different asset from a new-build subcontractor that paints for two builders at a fixed price per house, or an owner who quotes every job, sells it and works on site. There is little equipment to fall back on, so most of the value, where there is any, rests on earnings and relationships that a buyer can verify.
We examine the work mix, the labour model, the customers, the licences and the defect history, then form a view on the earnings a new owner could reasonably expect to keep.
How much is a painting business worth?
A painting business is worth what its maintainable earnings support after a market wage for the owner’s selling and supervision, adjusted for how much of that profit would continue under a new owner. Because there is little plant behind the earnings, the value rests on repeat customers, crew leaders who run jobs and the spread of builders and strata managers supplying the work.
Painting businesses we value
What affects the value of a painting business?
These are the questions we work through when we value a painting business. Because painting is labour-heavy with little plant, the value usually turns on how repeatable the work is and how much of it the owner personally controls.
Work mix and revenue quality
Residential repaint, new construction and commercial work
Homeowner repaints are won one at a time and rise and fall with the housing market and local reputation. New construction work is high volume at tight prices, and commercial and strata work is won by tender or quote and runs in cycles. We split revenue between these streams over several years, because each carries different margin, payment terms and risk.
Strata and commercial repaint cycles
Schemes and building owners repaint on planned cycles set by maintenance plans and capital works funds, which makes demand more predictable than residential work, although each major job is still won in competition. We look at how many schemes the business has painted, how the work was won and how much is likely to come back.
Maintenance painting contracts
Standing arrangements with property managers, housing providers, schools and councils can supply a base of smaller jobs through the year. We read the terms and rate schedules, how long each arrangement has been held and whether the customer can end it on a sale.
Pricing and margin by job type
Painting is quoted from measurement, with preparation the main variable. We compare quoted and actual labour hours and margin by job type, and look at how extra preparation, additional coats and access costs are priced and recovered as variations.
People and licensing
Employed painters, subcontractors and the labour model
Painting businesses run on employed painters, subcontract painters or a mix. We look at the proportion of each, how they are paid, tenure and insurance held. How each arrangement should be classified is a question for the business’s accountant or lawyer, and we weigh the cost if it were reclassified.
Crew leaders and supervision
Quality and productivity depend on crew leaders who run jobs without the owner on site. We check how many there are, how long they have stayed, and whether any could leave and take customers or crews with them.
Licensing thresholds by state
Whether a painter needs a contractor licence, and above what contract value, differs between states. We ask which licences and registrations the business holds, who holds them, and whether the work done falls inside what they permit.
Owner role in selling and quoting
In many painting businesses the owner measures, quotes, wins the work and visits site to check quality. We deduct a market cost for those roles and look at who else could estimate, sell and keep customers satisfied.
Customers and relationships
Builder concentration
New construction painting is typically won from a few builders, priced per house or per stage. We look at how many builders supply the work, how long they have been customers, price pressure at each renewal, payment times and exposure to a builder’s failure.
Strata manager concentration
A strata management company can direct many schemes to a painter and can redirect them just as easily. We look at how much revenue flows through each manager, whether the relationship rests on the owner personally, and what happens if the manager changes its preferred suppliers.
Repeat customers and reputation
Past customers, reviews, referral sources and a database that is followed up all bring work in. We look at which of these belong to the business and would pass to a new owner.
Defects, warranty and rework
Peeling, blistering, colour mismatch and poor preparation claims can arrive months after a job is paid. We look at the workmanship warranty offered, claims history, how disputes were settled and whether any ongoing exposure is reflected in the accounts.
Assets and operations
Low asset base
Most painting businesses own vans, ladders, airless sprayers and hand tools, and little else. Because plant is not the source of the profit, we do not expect asset value to support the price, and the valuation rests on earnings and on evidence that they are transferable.
Specialist coatings and access equipment
Epoxy flooring, protective coatings, anti-graffiti systems and high-rise work need specific products, training and equipment such as scaffolding, elevated work platforms or swing stages. We look at whether the equipment is owned or hired, whether the training is held and whether margins on specialist work justify the investment.
Scheduling, work in progress and cash flow
Painters are paid weekly, but progress claims on commercial and strata jobs are often paid later. We look at work in progress, debtor ageing, retentions and how well jobs are scheduled across crews so that labour is not idle between them.
How a buyer reads a painting business
Buyers of painting businesses include larger painting contractors expanding into a new area, strata and facilities maintenance groups bringing painting in-house, builders adding a finishing trade, and experienced painters or crew leaders buying their way into ownership. Their question is whether the work and the crews will stay once the owner has stepped back.
Because painting needs little equipment, buyers pay for earnings and relationships, and they look hard at both. A business with repeat strata and commercial customers, crew leaders who run jobs and a documented pricing method attracts wider interest than one that relies on an owner who sells every job and a builder who may use another painter next year.
Where the earnings are real but the transferability is limited, the value is lower and a buyer may ask for conditions such as a handover period. Our valuation sets out which part of the earnings we consider transferable and why.
Adjustments we often make in painting businesses
Reported profit is restated to what the business earns on a commercial footing before any method is applied. Every adjustment is listed in the report.
Owner wages
Replacing drawings, or a salary set for tax reasons, with a market cost for the quoting, selling and supervision the owner actually does, and for any hours on the tools.
Family members on payroll
Wages paid above or below market rate, or for roles that a buyer would not need.
Subcontractor and labour hire rates
Subcontract painters paid at rates that would not hold, or whom a buyer would have to employ.
One-off large jobs
A single large commercial, strata or developer job, or a builder or strata manager relationship that has ended.
Related-party premises and vehicles
A workshop or storage unit owned by the owner’s family trust or super fund and rented at other than market rent, and private use of business vehicles.
Defect and rework costs
A one-off rectification program or dispute, separated from the normal cost of doing the work.
Temporary subsidies and incentives
Government apprentice wage subsidies or other support that will not recur.
Information we typically review
You upload documents through the secure client portal after the engagement is confirmed. We send a list specific to your business; nothing needs to be gathered before the intake.
The financial pack
- Profit and loss statements, usually the last three years and the current year to date
- Balance sheets for the same periods
- Tax returns where relevant
- Payroll summary and employee information
- Vehicle, plant and equipment schedules
- Major customer information
- Recurring contracts and service agreements
- Revenue breakdown by service line
- Owner remuneration and drawings
- Unusual or non-recurring income and expenses
For a painting business, also
- Revenue split by stream: residential repaint, new construction, commercial, strata, maintenance contracts and specialist coatings
- Top ten customers, builders and strata managers by revenue for the last three years
- Maintenance contracts, preferred supplier panel agreements and schedules of rates
- Strata scheme list with the dates and values of past major works
- Licences and registrations by state, with the holder of each
- Employee and subcontractor lists with role, pay basis, tenure and insurance certificates
- Crew leader roster and the jobs each ran over the last year
- Quote register showing quoted against actual labour hours and margin on completed jobs
- Warranty claims and defect register, and any dispute correspondence
- Specialist coating accreditations and access equipment schedule, including finance owing
- Work in progress, retentions and debtor ageing
What a painting business valuation costs
Fixed fees, confirmed in writing before work begins. The standard fee applies to most established painting businesses.
Independent Business Valuation
$1,995+ GST
For established trade and field-service businesses requiring an independent valuation.
- Review of financial information
- Normalisation of earnings
- Valuation methodology selected for the business and purpose
- Industry and business risk assessment
- Consideration of plant, vehicles and equipment
- Owner dependency assessment
- Goodwill analysis
- Valuation range and conclusion
- Professionally prepared valuation report
- Draft provided before finalisation
Accountant and Adviser Partner
$1,495+ GST
For accountants and professional advisers who refer valuation matters regularly.
- Streamlined client onboarding
- Adviser kept informed with client authority
- Independent report addressed to the client
- Secure document portal for the client
- Repeat-client workflow
- Partner pricing on every referred matter
Complex Valuations
From$2,995+ GST
For matters with more moving parts. Quoted as a fixed fee in writing before work begins.
- Multiple entities or divisions
- Significant plant and equipment
- Unusual ownership structures
- Partnership and shareholder disputes
- Complex normalisations
- Significant customer concentration
- Historical valuation dates
Fees are fixed and confirmed in writing before work begins.
Painting valuations: common questions
How much is a painting business worth?
A painting business is generally worth what its maintainable earnings support after a market wage is paid for the owner’s own work, adjusted for how much of that profit would continue under a new owner. With little plant behind the earnings, the value depends heavily on repeat customers, crew leaders and the spread of work. Our guide on how trade businesses are valued explains the method.
My business owns very little. Is there anything to value?
Yes, but the value sits in the earnings and relationships rather than in assets. Vans, ladders and sprayers have some value, but the question is whether the profit they help produce would continue under a new owner. If it depends on you selling and supervising every job, that limits what a buyer can reasonably pay, and the report will say so.
Most of our work comes through a few strata managers. Is that a problem?
It is a risk, not a barrier. A strata manager can move many schemes at once, so the report looks at how long each relationship has run, how the work was won, how many schemes sit behind each manager and what the business earns without its largest source. Our guide on customer concentration and business value explains why it matters.
Do subcontract painters affect the valuation?
Yes. A team of subcontractors gives flexibility, but a buyer will ask whether the arrangements are stable, whether the painters would stay and whether any of them would need to be employed. How each arrangement should be classified is a question for your accountant or lawyer. We assess how much of the work depends on them and what it would cost if that changed.
Related industries and guides
Valuing a painting business? Start with a short intake.
An Independent Business Valuation is $1,995 + GST, with a draft before the report is finalised. Typical turnaround is 3 to 7 business days once all required information has been received.