Looking for industrial coatings industry expert

May 11, 2026

by a searcher from University of Virginia-Darden - Darden School of Business in Leesburg, VA, USA

Hi all- I'm under LOI with an industrial coatings business that has multiple service lines such as blast and paint, tank lining, lead abatement, industrial flooring, etc. I'd love to connect with anyone that has experience in the industry to learn more about licensing and certification requirements in the acquisition context as well as key areas to watch out for in DD.

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Reply by a lender
from University of Southern California in Los Angeles, California, USA

Hi ^redacted‌ Congrats on getting to LOI. Industrial coatings is a solid vertical and we have funded deals in similar construction/specialty services spaces. A few things worth knowing from the financing and DD side that trip people up in this industry: Lead abatement specifically requires EPA RRP certification and often state-level licensing. The business itself needs to hold those licenses, and if the current owner is the qualifying individual on the license, you need a plan for how that transfers or who on the team steps into that role. SBA lenders will ask about this during underwriting, if the license is tied to the seller personally and the seller is leaving, that is a risk flag. Different lenders have different requirements regarding who can hold the license. As you know if the seller cannot hold the license without providing a 24-month pg on the loan. You will have to rely on existing employee or a new employee for the license. Tank lining and blast/paint work often falls under SSPC or NACE certification requirements depending on the client base (DOT, military, municipal contracts). If a large portion of revenue comes from government or institutional clients, lenders will want to see continuity. Also worth checking: environmental liability. If the business has done lead abatement or worked with coatings containing hazardous materials, lenders may require a Phase I environmental assessment. Insurance coverage (pollution liability specifically) is another DD item that gets missed. On the financial side, make sure you understand seasonality, many industrial coatings businesses are weather-dependent and have uneven cash flow. SBA lenders need DSCR of 1.25x in each individual year, not averaged, so if one year dips you need to know why. We would love to work with you to find the best SBA lender for this deal. We are a free service to the borrower, since we get paid by the lender post-close. Please use this meeting link to schedule a meeting with my team: https://cal.com/team/sba/searchfunder

Reply by a professional
from Northwestern University in Chicago, IL, USA

Hi @redacted‌, Happy to offer some insights and chat more. Feel free to shoot me an email at redacted

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