Apex Precision Engineering Pty Ltd™
Advanced Manufacturing / Precision Engineering
Client: Mr David Chen, Managing Director
Apex Precision Engineering is an established advanced manufacturing business supplying precision-machined components to the aerospace, defence, and medical device sectors. With annual revenue of $12.5M and an EBITDA margin of 22.4%, the business operates from a purpose-built facility in Brisbane, employing 48 staff including 12 trade-qualified engineers.
The IPAPS™ assessment identified significant hidden value in the business's proprietary tooling designs, documented quality systems (AS9100D certified), and long-term customer contracts with prime defence contractors. The Business Value Roadmap™ identifies actionable initiatives projected to increase enterprise value by $3.2M to $4.8M over 24 months.
The business is assessed as Sale Ready with minor remediation required in documentation and successor identification. The Certificate of Valuation™ is issued under certificate number TIP-CBV-2026-0001 and is valid for 12 months from the assessment date.
Based on the IPAPS™ Benchmark Enterprise Value Methodology™ (v1.2), comprehensive financial analysis, intellectual property assessment, and strategic asset evaluation, it is my professional opinion that the IPAPS™ Adjusted Enterprise Value of Apex Precision Engineering Pty Ltd™ as at 7 July 2026 is:
| Parameter | Value | Basis |
|---|---|---|
| Revenue (FY2026) | $12.5M | Audited financial statements |
| EBITDA | $2.8M | 22.4% margin — accountant-prepared |
| Maintainable Earnings™ | $2.6M | Normalised for owner adjustments |
| Industry Multiple (Mid) | 5.5× | Advanced manufacturing — IPAPS™ v1.2 table |
| Base Enterprise Value | $14,300,000 | ME × Mid Multiple |
| IPAPS™ Value Adjustment Factor™ | 1.12 | IP strength + commercialisation + transferability |
| IPAPS™ Risk Discount Factor™ | 0.95 | Founder dependency + customer concentration |
| IPAPS™ Adjusted EV (Mid) | $16,800,000 | Base EV × VAF × RDF |
| Valuation Confidence | HIGH | 5+ years audited data, accountant records, full IP register |
I, Dr Maurice Roussety, certify that this valuation has been prepared in accordance with the IPAPS™ Benchmark Enterprise Value Methodology™ and reflects my professional assessment based on the information provided and independent analysis conducted. This valuation is suitable for the purposes of business sale, succession planning, capital raising, and formal transaction discussions.
Dr Maurice Roussety (Dr M)
PhD (IP & Franchise Goodwill Valuation, Griffith University) | ThinkIP™ | 7 July 2026
| Component | Value | Notes |
|---|---|---|
| Base EV (ME × Multiple) | $14,300,000 | $2.6M × 5.5× (manufacturing mid-band) |
| Strategic IP Premium | +$2,800,000 | Proprietary tooling designs + AS9100D quality system |
| Contract Value Premium | +$1,500,000 | Long-term defence contracts (5-year avg tenure) |
| Hidden Asset Uplift | +$900,000 | Undocumented process IP + supplier relationships |
| Founder Dependency Discount | −$1,800,000 | Mr Chen is central to customer relationships |
| Customer Concentration Discount | −$900,000 | Top 3 customers = 52% revenue |
| IPAPS™ Final Enterprise Value | $16,800,000 | Most likely scenario — weighted |
The IPAPS™ Master Score™ of 78/100 is a weighted composite of six business assessment indices. Each index has been evaluated through questionnaire responses, document review, and Dr M's professional judgement.
Proprietary tooling designs, AS9100D quality system, documented engineering processes. Two patent applications in progress. Strong IP profile for manufacturing.
Revenue is contract-based with 5-year average tenure. However, top 3 customers represent 52% of revenue. Recurring contract revenue is strong but concentration is a risk.
Mr Chen is the primary relationship holder for key defence customers. Management team exists but customer relationships are not fully transferred. Moderate dependency risk.
Operations are well-documented with AS9100D systems. The business can operate without the founder's daily presence. However, customer relationship transfer requires structured transition.
5+ years of audited financials. Consistent profitability. Strong cash flow. Low debt. Accountant-prepared records. Healthy financial position.
Proprietary tooling could be licensed to other manufacturers. Process IP could support training/certification products. Commercialisation infrastructure is partially developed.
What Is IPAPS™?
IPAPS™ stands for Intellectual Property Assets Pricing System™. It is a proprietary business assessment and valuation methodology developed by Dr Maurice Roussety to assess business value in the intangible economy.
Unlike traditional approaches that focus primarily on financial performance, IPAPS™ also evaluates intellectual property strength, revenue quality and predictability, founder and customer dependency, transferability to a new owner, commercialisation readiness, capital efficiency, supply chain advantage and value leakage.
| Feature | EBITDA Multiple | Standard DCF | Online Calculator | IPAPS™ |
|---|---|---|---|---|
| Financial earnings analysis | ✓ | ✓ | Partial | ✓ |
| IP strength assessment | N/A | N/A | N/A | ✓ |
| Capital efficiency analysis | N/A | N/A | N/A | ✓ |
| Transferability assessment | N/A | N/A | N/A | ✓ |
| Value leakage identification | N/A | N/A | N/A | ✓ |
| Revenue quality scoring | N/A | Partial | N/A | ✓ |
| Supply Chain IP™ analysis | N/A | N/A | N/A | ✓ |
| Business improvement roadmap | N/A | N/A | N/A | ✓ |
IPAPS™ does not replace traditional valuation approaches. It complements them by identifying business value drivers that are often overlooked in conventional SME assessments.
Dr Maurice Roussety (Dr M)
Dr Maurice Roussety is a business strategist, valuation specialist, author and educator with more than four decades of experience advising businesses, investors and professional advisers. He holds qualifications in Accounting, Economics, Business Administration, Leadership and a Doctor of Philosophy specialising in Intellectual Property and Franchise Goodwill Valuation from Griffith University.
Dr M has participated in more than 500 business valuation, strategic advisory and intellectual property engagements and developed IPAPS™ to help business owners identify hidden value, reduce value leakage and better understand the role of intellectual property in modern enterprise value.
This report contains an indicative business value and intellectual property assessment prepared using the IPAPS™ Snapshot™ methodology (v1.2). It is not a formal valuation, certified valuation, independent valuation, audit, legal opinion or investment advice.
The indicative enterprise value range is based on information provided by the business owner or their representative and has not been independently verified. Actual market value may differ materially from the indicative range presented in this report.
This report should not be relied upon for the purpose of any commercial transaction, legal proceeding, financial reporting, tax or regulatory purpose without obtaining a formal, independent professional valuation from a qualified valuer.
© ThinkIP™. IPAPS™ is a proprietary methodology. All rights reserved. IPAPS™ Snapshot™ Methodology v1.2 LOCKED.