Verbrec Limited (ASX:VBC) provides engineering, asset management, operations and maintenance, and training to the energy, mining, infrastructure and defence industries in Australia, New Zealand, PNG and the Pacific Islands. The company operates two divisions in Engineering (~90% of FY25 revenue) and Competency Training (~10% of FY25 revenue). The company has announced that it has signed an agreement to sell Competency Training to RelyOn Australia Pty Ltd for a headline purchase price of $11.5m, payable full in cash on completion, but subject to adjustments for working capital and net cash/debt at completion. The transaction is subject to several conditions precedent, including approval by the Foreign Investment Review Board (FIRB). For those reasons and an unknown timeframe, we do not include the transaction in our formal forecasts but outline the potential impact if it completes as expected. Competency Training contributed $1.9m EBITDA in FY25 as a division. If we assume the transaction completes on 31 December 2025, FY26 forecast group EBITDA is ~$9.0m. The $11.5m of consideration received, plus current net cash of $2.3m, plus forecast FY26 free cash flow of $7.0m, should increase the net cash balance at 30 June 2026 to ~$20.8m, equating to an enterprise value (EV) of $9.9m. This puts the business on a FY26 EV/EBITDA multiple of 1.1x. We forecast that to further strengthen to 0.5x in FY27. The sector average FY26 EV/EBITDA multiple across 11 peers (from LSEG consensus estimates) is 7.6x. This equates to an 85% discount for VBC.