Powder Coating Shop
The invisible backbone of every metal thing you've ever owned
Powder coating is an industrial finishing process that electrostatically applies dry powder paint to metal surfaces, then bakes it in an oven for a durable, chip-resistant finish. Auto parts, bike frames, patio furniture, fence posts, industrial components — anything metal gets powder coated. Small shops serve auto restorers, fabricators, contractors, and manufacturers, generating $200K–$600K in revenue with margins most service businesses would envy.
Avg Revenue
$400K
Profit Margin
42%
Acquisition Multiple
1.5x - 2.5x
Startup Cost
$40K - $120K
Difficulty
3/5
How It Works
Metal parts are prepped (sandblasted or chemically stripped), then grounded and electrostatically sprayed with dry powder. Parts go into an industrial curing oven at 350–400°F for 15–25 minutes to create a hard, even finish. Revenue comes from per-job pricing — typically $2–$8 per square foot or flat rates per part. B2B clients (shops, manufacturers, contractors) drive volume; retail walk-ins add margin.
Revenue Range
Real Acquisitions in This Category
SBA 7(a) change-of-ownership loans · NAICS 332812 · Metal Coating, Engraving (except Jewelry and Silverware), and Allied S
Deal Size Distribution
Deal Flow Over Time
Financing Profile
Recent Comparable Deals
| Closed | State | Loan | Implied deal | Jobs | Franchise |
|---|---|---|---|---|---|
| Nov 2025 | ID | $2.3M | $2.7M | 15 | — |
| Feb 2025 | MA | $102K | $119K | 2 | — |
| Nov 2024 | IL | $248K | $292K | 3 | — |
| Dec 2023 | MN | $100K | $118K | 9 | — |
| Dec 2023 | MN | $551K | $648K | 9 | — |
| Nov 2023 | ID | $838K | $986K | 2 | — |
| May 2023 | OK | $152K | $179K | 2 | — |
| Jan 2023 | UT | $349K | $411K | 8 | — |
| Sep 2022 | IL | $20K | $24K | 2 | — |
| Jun 2022 | CA | $1.3M | $1.5M | 64 | — |
Source: SBA 7(a) FOIA dataset, filtered to acquisitions (loans where business age is "Change of Ownership"). Implied deal size assumes an 85% loan-to-purchase ratio, a common SBA change-of-ownership structure. Charge-off rate shown only when 10+ loans have resolved (paid in full or charged off). Interest rates reflect last 24 months only. Actual deal values vary with equity injections, seller financing, and working capital terms.
Pros
- +High margins — COGS is mostly labor, electricity, and powder (20–30% of revenue)
- +Sticky B2B relationships — fabricators and shops become repeat clients
- +Low direct competition in most mid-sized cities
- +Scalable: add ovens and booths without proportional labor increases
Cons
- -Requires industrial space with ventilation and 3-phase electrical
- -Equipment (oven, booth, gun) costs $40K–$80K upfront
- -Seasonality: slower in winter as construction and auto projects slow
Best For
Owners with trades or industrial background; investors willing to hire an operator
Operating Costs
Main costs: rent for industrial space ($1,500–$4,000/mo), electricity ($800–$2,500/mo for oven operation), powder and materials (15–20% of revenue), and 1–3 employees. Profit swings heavily on utilization rate.
SBA Financing Estimator
Adjust the deal — see if it cash flows after debt service
Estimates only. Excludes owner compensation, capex, working capital draws, and taxes. Margin assumes average occupancy and volume. Actual SBA terms vary by lender and borrower profile.
Where to Buy
Search powder coating shops listed for sale across the US
Manufacturing and finishing business listings including powder coat shops
Acquisition Score
Scores margin (30), entry multiple (25), SBA market depth (20), category risk (15), and deal momentum (10). Higher = better acquisition candidate.
Quick Facts
- Category
- physical
- Difficulty
- 3/5
- Buy price
- $600K–$1.0M
Buyer's Toolkit
Essential tools to get started
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SBA loans and business acquisition financing — get funded fast
ROBS financing — use retirement funds to buy a business tax-free
Bookkeeping for small business owners — hands-off financials
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