Precision machine shops with real certifications and sticky customers attract serious buyers, including private equity. A real example from M&A Business Advisors is Unitech Tool & Machine, a precision machine shop in Silicon Valley, where M&A Business Advisors represented both sides and sold to Camwood Capital Group. Here is what selling a machining business looks like.
The deal
Private equity buyers like clean, certified machine shops with repeat industrial customers because they can be a platform for further growth. That is a different buyer profile than a single owner-operator.
How machine 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 precision machining, value tracks certifications (for example aerospace or medical quality standards), the stickiness of customer programs, equipment age, and margin. A shop with long-running customer programs and modern CNC equipment values higher than a pure job shop.
Want a real number on your business?
I do confidential, no-pressure valuations for owners of trades and service businesses. No obligation to sell.
Book a 20-minute callWhat buyers look for
- Quality certifications and approved-vendor status with real customers.
- Recurring or long-run customer programs over one-off jobs.
- Modern, well-maintained CNC equipment.
- Skilled machinists who will stay, and clean books.
Getting ready to sell
Protect your certifications, document your customer programs, and keep your equipment and quality systems current. Then get a real valuation before you talk to buyers. I help owners prepare.
Want a real number on your business?
I do confidential, no-pressure valuations for owners of trades and service businesses. No obligation to sell.
Book a 20-minute call