Specialized Industrial Painting and Coatings Contractor
This article lays out the acquisition strategy for an industrial painting and coatings contractor that specializes in corrosion control, protective coatings, tank linings, structural steel painting, floor epoxy systems, and confined space work. The company serves clients in manufacturing, energy, wastewater treatment, transportation infrastructure, and the defense sector. Services are performed in compliance with OSHA, NACE, and SSPC standards, and the company is certified for lead abatement, confined space entry, and government contracting.
The business generates $6.12 million in annual revenue and $1.29 million in adjusted EBITDA. Roughly 60% of revenue stems from ongoing contracts and multi-year maintenance agreements, with the remaining 40% coming from one-off projects that include sandblasting, bridge coatings, floor systems, and structural paint work. Many projects are awarded via annual procurement cycles and bid platforms, with substantial business from public utilities, municipal governments, and energy operators.
Due to its strong gross margins, regulatory certifications, and repeat customer base in critical infrastructure and manufacturing, the business is ideal for SBA 7(a) acquisition. A buyer can scale by acquiring undercapitalized regional competitors, securing additional government contracts, and expanding into recurring floor coatings, tank maintenance, and anti-slip systems for high-traffic plants.
Proposed SBA 7(a) Deal Structure
Given its stable contracts, public-sector client base, and capital-light service model, the business supports the following SBA financing:
Purchase Price: $5.16 million (4.0x EBITDA)
SBA Loan: $3.87 million (75%)
Buyer Equity Injection: $516,000 (10%)
Seller Financing (Subordinated): $774,000 (15%) amortized over 6 years, with a 12-month interest-only period
Protective structure:
25% clawback on seller note if facility maintenance and government contract renewal drops below 85% within 180 days
$75K performance bonus to seller if buyer secures $1 million in new projects within first 12 months
Seller remains as coatings compliance consultant and key client liaison for 9 months post-close
Client Segments and Revenue Composition
Client breakdown:
Municipal water/wastewater departments: 27%
Energy and utility companies: 21%
Industrial manufacturing plants: 19%
Bridges and infrastructure contractors: 13%
Department of Defense (bases, warehouses, equipment): 12%
Chemical/refinery facilities: 8%
Revenue segmentation:
Structural steel coatings (bridges, tanks, mezzanines): $2.4M
Floor coatings (epoxy, anti-slip, high-durability): $1.32M
Tank linings and corrosion-resistant systems: $940K
Lead abatement and confined space remediation: $790K
Concrete sealing, pressure washing, prep services: $670K
Contracts are typically awarded via bid processes or multi-year maintenance agreements with annual renewals. Bids include prevailing wage calculations, safety plan submittals, and pre-qualification by engineering firms or procurement boards.
The top 50 clients account for 72% of revenue, with no single client over 9.3%.
Field Technicians and Certifications
Personnel:
5 NACE Level I/II inspectors and SSPC-trained foremen
12 full-time field applicators trained in industrial and confined space coatings
2 project estimators and compliance officers
1 general superintendent and 1 controller
Temporary union labor used for large-scale projects
All crews are OSHA 30-certified, trained in confined space, lead abatement, PPE protocol, fall protection, and respiratory safety. The company maintains its own air monitoring equipment and documentation process for government compliance.
Post-close labor strategy:
Recruit 3 additional union-trained applicators to expand job capacity
Launch apprenticeship program for epoxy flooring and tank linings
Implement mobile safety auditing software for site foremen
Facility, Equipment, and Assets
Facility:
8,500 sq ft industrial warehouse
Coatings storage and temperature-controlled chemical bay
Equipment and rigging storage
Office space with safety records vault and submittal library
Lease: $6,500/month with 3 years remaining + 5-year renewal option
Fleet and gear:
7 job site trucks (3 with lift gates)
Sandblasters, shot blasters, pressure washers, ventilation fans
Lead abatement systems, HEPA vacs, compressors, safety lines
FMV: ~$620,000 (vehicles, tools, coatings inventory)
CapEx needs:
Replace 2 trucks with ¾-ton rigs: $68K
Upgrade floor coating equipment (grinders, mixers): $26K
Build online SDS and submittal library for bid automation: $9K
Sales Infrastructure and Growth Strategy
Sales and bid channels:
RFP responses through municipal portals and general contractors
Direct outreach to facility managers at large industrial campuses
Referrals from engineers, GC firms, and architectural specifiers
Military contractor network via SAM.gov and DoD supplier lists
Marketing budget: ~$42,000/year
Growth levers:
Acquire 1–2 smaller firms with lead abatement licenses but no marketing infrastructure
Expand floor coatings into food and beverage, warehouse, and pharma plants
Develop bridge inspection and coatings compliance program with PE partner
Create recurring “coatings health check” subscription for facility owners
Offer product-neutral specs and bid consulting to engineering firms
Financial Summary
Revenue: $6.12M
COGS (labor, coatings, rental equipment, PPE): $2.76M
Gross Profit: $3.36M
SG&A: $2.07M
Adjusted EBITDA: $1.29M (21.1%)
Service margins:
Floor coatings: 60–65%
Structural painting: 50–55%
Tank lining: 55–60%
Lead abatement: 65%+
Power washing/prep: 40–50%
Billing cycles are tied to project milestones, net-30 standard. Government projects often pay via procurement platforms or retainage accounts.
Compliance, Risk, and Safety
OSHA 30 certifications across all foremen
NACE, SSPC, and lead abatement licenses active and audited annually
Fully insured: $2M GL, $1M umbrella, $1M auto, $1M workers comp
Job hazard analyses and air monitoring logs maintained digitally
No open OSHA claims, fines, or environmental violations. Air testing logs and respirator fit tests updated quarterly.
Working Capital and Transition Plan
Payroll float and vendor deposits: $145K–$160K
Truck and equipment upgrades: $94K
Bid and submittal digitization: $12K
Seller transition services: $32K
Onboarding 3 new applicators: $26K
Ideal Buyer Profiles
SBA-qualified buyer with industrial, construction, or coatings background
General contractor expanding into compliance-driven specialty trades
PE-backed infrastructure services platform seeking high-margin add-on
Government contractor seeking expansion into environmental coatings
Post-Close Execution Plan
Announce ownership transition to top 40 clients and procurement officers
Launch initiative to win epoxy and slip-resistant floor work in manufacturing
Hire 3 new field applicators and begin union onboarding process
Pursue GSA schedule listing and military coatings certifications
Acquire $1M+ revenue lead-abatement firm to consolidate bidding region
Conclusion
This industrial coatings contractor is a compliance-driven, bid-cycle aligned, and infrastructure-tied business with durable cash flow, proven technical execution, and entrenched relationships with governments and utilities. A buyer using SBA 7(a) financing acquires not just revenue and skilled crews, but a foothold in regulatory work tied to long-term asset protection. The company’s certifications, safety record, and market footprint provide a launchpad for regional expansion, specialization, and recurring income from facilities that cannot afford non-compliance.
