M&A built for the operators of Australian manufacturing.
Australian manufacturing is in the middle of a structural shift — onshoring momentum, generational ownership transitions, foreign capital pursuing local capability, and the slow split between businesses investing in automation and those that aren't. Novastrone advises manufacturing owners and acquirers through these decisions — recognising the operational depth, the people, and the years of investment behind every business we work with.
Sectors we serve within manufacturing.
Across contract, precision, food, packaging, medical and aerospace — manufacturing is not one market, and the buyer pool changes with every sub-sector.
- Contract manufacturing
- Precision & CNC machining
- Metal fabrication
- Plastics & injection moulding
- Food & beverage manufacturing
- Packaging
- Medical devices
- Industrial equipment
- Aerospace components
- Electronics manufacturing
- Specialty materials
- Specialty chemicals
What's driving M&A right now.
Onshoring momentum, generational transition, and foreign capital pursuing Australian capability — three currents pulling in the same direction.
- Onshoring and supply chain resilience is creating premium pricing for Australian manufacturing capability.
- Industry 4.0 and automation are creating clear winners (acquired at premium) and clear laggards.
- Generational ownership transitions across the SME manufacturing base are driving sustained deal flow.
- Strategic acquirers are vertically integrating to lock in supply.
- Foreign buyers (US, EU, Japan, Korea) are acquiring Australian capability for ANZ market access.
- Energy transition and green manufacturing are creating new buyer interest in adjacent capabilities.
What buyers actually pay for.
Plant value sits on the balance sheet. The real premium is in contracts, certifications, workforce, and end-market diversification — the things that take years to build and can't be bought through a CapEx line.
- Recurring or contracted customer relationships
- Asset utilisation and capacity headroom
- Quality certifications — ISO 9001, AS/NZS, AS9100, TGA, GMP, HACCP
- Skilled workforce, retention, apprenticeship pipelines
- Diversified end-markets — concentration is a discount
- Real estate strategy (owned, leased, sale-leaseback potential)
Technically differentiated or certified capability commands the premium end of the multiple range.” The capability premium
Common structures, and the traps that come with them.
Property, working capital, plant condition — the manufacturing-specific levers that quietly shape the headline number.
- Property frequently a separate transaction — sale-and-leaseback structures are common where owners hold real estate personally.
- Working capital normalisation is a major negotiation point — inventory, work-in-progress, raw materials.
- Earn-outs are less common than services sectors but still used for 12 months post-close.
- Vendor finance is common where the buyer needs to fund near-term capex.
- Founder retention is typically 12–24 months for technical handover and customer continuity.
- Customer concentration with a single OEM or major customer.
- Aged plant requiring near-term capex that isn't reflected in stated EBITDA.
- Environmental or contamination liabilities on owned property.
- Inventory obsolescence sitting on the balance sheet.
- Workforce and IR exposure — enterprise agreements, casual workforce reclassification risk.
Start a confidential conversation.
Whether you're an owner planning succession, or a strategic acquirer building capability — a confidential first call is the right place to begin.
Request a confidential consultation