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BIZBITE

Powder Coating Shop

The invisible backbone of every metal thing you've ever owned

Bottom line

Strong cash-flow candidate with manageable operations.

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.

Acquisition score
Margin · multiple · SBA data
71Strong
Avg revenue
$400K/yr
$200K–$700K range
Profit margin
42%
~$168K SDE
Multiple
1.5–2.5×
of SDE
Est. buy price
$252K–$420K
startup: $40K–$120K

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.

BizBite verdict

Worth underwriting

Powder Coating Shop has enough high-level data for a first look, but BizBite has not assigned a category-specific operating model yet. Treat the score as preliminary.

71Strong
medium data confidence · 52/100medium financing fit

Why it may work

  • +Attractive 42% estimated margin profile
  • +SBA dataset shows 4 recent comparable loans

Be careful

  • !Source link status has not been verified yet
  • !No last-checked date yet
  • !No category operating model yet

SBA 7(a) data

Real acquisitions in this category

Change-of-ownership loans · NAICS 332812 · Metal Coating, Engraving (except Jewelry and Silverware), and Allied Services to Manufacturers

Deals tracked
19
4 in last 24 mo
Median loan
$551K
$248K–$1.0M p25–p75
Implied deal size
$648K
median · ~85% LTV
Charge-off rate
not enough resolved loans

Deal size distribution

<$150K
3
$150K–500K
5
$500K–1M
5
$1M–2M
4
>$2M
2

Deal flow over time

12-month momentum
0.0%
deal volume vs prior 12 mo
Median loan Δ
+1248.8%
2 recent · 2 prior

Financing profile

Median rate
8.60%
25% fixed · last 24 mo
Median term
120 mo
standard 10-yr
Collateralized
0%
of loans secured
Median jobs
9
supported per deal
Top lenders in this space
Live Oak Banking Company5
Falcon National Bank2
West Shore Bank1
Capital Community Bank1
Mountain Pacific Bank1
Where deals happen
WI3
WA3
ID2
CA2
IL2
MN2
MI1
UT1
MA1
OK1

Recent comparable deals

ClosedStateLoanImplied deal
Mar 2026WA$2.4M$2.8M
Nov 2025ID$2.3M$2.7M
Feb 2025MA$102K$119K
Nov 2024IL$248K$292K
Dec 2023MN$100K$118K
Dec 2023MN$551K$648K
Nov 2023ID$838K$986K
May 2023OK$152K$179K
Jan 2023UT$349K$411K
Sep 2022IL$20K$24K
Volume rank #267/544Deal-size rank #358/544Momentum rank #144p90 loan: $1.3MData as of Mar 2026

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.

Deal Calculator

Priced off $168K SDE — can this deal service its own debt?

3.75×
DSCR · Lender-comfortable
Purchase multiple — 2.0× SDE ($335K)
Category range: 1.5×–2.5× SDE
Down payment — 10% ($34K)
SBA minimum equity injection is 10% for change-of-ownership
Interest rate — 8.50%
SBA median for this category: 8.6%
Loan term — 10 years
SBA median for this category: 120 months
Purchase price
$335K
2.0× of $168K SDE
Cash to close
$44K
$34K down + ~3% closing
Debt service
$4K/mo
$45K/yr on $302K loan
Cash-on-cash
283%
cash back in ~5 mo
Debt service coverage · what the lender sees
3.75×+$10K/mo after debt
Most SBA lenders want ≥1.25× coverage; 1.5×+ is a strong file.

SDE = revenue × margin estimate for this niche; it includes owner compensation, so budget your salary out of cash flow. Excludes working-capital injection, capex reserves, and taxes. Actual SBA terms vary by lender and borrower.

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.

Where to Buy

BizBuySell

Search powder coating shops listed for sale across the US

BizQuest

Manufacturing and finishing business listings including powder coat shops

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