Selling a Metal Fabrication Business: The Stodtmeister Iron Sale

Metal fabrication and ornamental iron shops are valued on their equipment, their skilled labor, and their contracts. A real example from M&A Business Advisors is Stodtmeister Iron, an ornamental and architectural metal fabricator in the Sparks and Sacramento area, where M&A Business Advisors represented both sides and sold to Blacksmith Enterprises. Here is what selling a fab shop involves.

The deal

The buyer here was another business in the metalwork space, a strategic fit that could take on the equipment, crew, and project pipeline.

How fabrication shops are valued

Like most businesses under $5M, these sell on a multiple of earnings, either Seller's Discretionary Earnings (SDE) for smaller owner-operated shops or EBITDA for larger, management-run companies. The exact multiple varies by the specifics below, so treat any range as a starting point, not a quote.

For fab and iron shops the multiple depends heavily on how specialized and contract-backed the work is. A shop with recurring commercial or builder relationships, certifications, and modern equipment values higher than one that bids one-off jobs.

What buyers look for

• Modern, well-maintained equipment, which is real transferable value.
• Recurring commercial, builder, or contractor relationships.
• Skilled, certified fabricators and welders who will stay.
• Low customer concentration and clean books.

Getting ready to sell

Document your backlog and relationships, keep your equipment and certifications current, and reduce how much the business depends on you. Then get a real valuation. I help owners do exactly that.