The manufacturing industry in Australia is a $386 billion industry that has been an integral part of the Australian economy for a number of decades but has also changed significantly in that time.
The Manufacturing industry in Australia has previously been one of the largest industries, accounting for 25% of GDP in 1960 compared to its current level of 10%.
Competition in the manufacturing industry has increased rapidly through increasing globalisation and the growth of emerging economies. Numerous countries are focusing on niche areas where they have competitive advantages, such as highly innovative technology, geographic advantages or low costs of labour.
One major external factor that has led to a reduction in manufacturing in Australia has come from the uptake of similar processes under differing political jurisdictions. A number of countries such as China and India have a more relaxed political framework than Australia. These countries may foster a competitive advantage through high spending and advancement in technology, ensuring processes are more efficient or lower costs of labour resulting in lower manufacturing expenses making it difficult for competing firms in Australia to be competitive, particularly in relation to price.
There are a number of factors that have a direct impact on the valuation of manufacturing businesses, such as:
- Having innovative manufacturing processes or products;
- Having a history of continued innovation and adaption;
- A diversified product offering;
- Scalability, and;
- Strong intellectual property protection.
Expert Guide: Sale and Valuation of Manufacturing Businesses
Based on our significant experience in working with manufacturing businesses, Quinn M&A has developed an Expert Guide on the Sale and Valuation of Manufacturing Businesses. This guide is an invaluable resource, allowing manufacturing businesses to understand the current state of their industry, how manufacturing businesses are valued and what factors need to be considered when selling a manufacturing business.
Our Experience and Expertise
At Quinn M&A, we have significant experience in advising on sales, mergers, acquisitions, and valuations within the manufacturing industry. Our advisors understand the industry, are acutely aware of the value drivers for the manufacturing industry and have a track record of negotiating premium sale outcomes for shareholders of manufacturing companies.
Shareholders of manufacturing companies can trust Quinn M&A to provide expert advice in a range of areas, including:
- Business, company and shareholding valuations for manufacturing businesses;
- Advice to assist with the acquisition of manufacturing businesses;
- Due diligence advice for manufacturing acquisitions or sales;
- Full brokerage service for the manufacturing businesses;
- Specialist taxation advice, and;
- Legal advice.
Clients and advisors who require assistance with undertaking the sale, merger, acquisition or valuation of manufacturing companies are encouraged to call us on 1300 784 667 to schedule a complimentary consultation with one of our Directors.