Sell Your Machine Shop — Expert CNC & Precision Machining M&A Brokers
If you're ready to sell your machine shop, you need a broker who understands the difference between a job shop running manual mills and a precision CNC operation holding AS9100D certification. The Precision Firm specializes exclusively in manufacturing M&A — and machine shops are at the core of what we do. Whether you run a general machining operation, a precision CNC shop with 5-axis capabilities, or a specialty shop serving aerospace, medical, or defense customers, we know how buyers value your equipment, your certifications, and your backlog. We don't guess — we've been on the shop floor.
What Is My Machine Shop Worth?
Valuation for a machine shop depends on far more than just revenue. Here's what drives your multiple:
Equipment age and capability. A shop running modern 5-axis Mazak or DMG Mori machining centers is worth materially more than one running 20-year-old 3-axis mills. Buyers underwrite equipment replacement cost and remaining useful life.
Certifications and compliance. AS9100D, ISO 13485, ISO 9001, NADCAP, ITAR registration — each certification represents months or years of investment that a buyer doesn't have to repeat. Certified shops command a premium.
Customer concentration and contract backlog. Long-term agreements (LTAs) and blanket POs create predictable revenue that buyers love. But if 40%+ of revenue comes from one customer, that's a risk discount.
Workforce and tribal knowledge. Skilled machinists who can hold 0.0001" tolerances on exotic alloys aren't replaceable from a job board. Buyer interest increases when your team is stable and your processes are documented in SOPs, not stored in one person's head.
Owner dependency. If the shop runs without you on the floor, it's worth more. If you're still programming every job and quoting every RFQ, buyers see risk.
General benchmarks:
General job shops ($1M-$5M revenue): 3x-4.5x SDE
Precision CNC shops with certifications: 4.5x-7x EBITDA
AS9100/ISO 13485 certified with defense or medical contracts: 6x-9x EBITDA
Shops with automation/lights-out capability: 15-25% premium above comparable shops
Request a free, confidential machine shop valuation to see where you stand.
Types of Machine Shops We Sell
General CNC Job Shops
High-mix, low-volume operations serving multiple industries. Valued on SDE for smaller shops, EBITDA for larger operations. Buyers look for equipment condition, programming efficiency, and customer diversity.
Prototype and Short-Run Shops
Rapid prototyping, first-article production, and engineering support. Often valued on customer relationships and turnaround capability rather than volume. Attractive to buyers building engineering services platforms.
Precision Aerospace Machine Shops (AS9100D)
Shops producing structural components, engine hardware, and flight-critical parts for aerospace and defense primes. AS9100D certification and ITAR compliance are major value drivers. Buyer pool includes Tier 1/2 suppliers and PE platforms building aerospace supply chain roll-ups.
Swiss-Turn and Micro-Machining Specialists
High-precision, high-volume turning on Citizen/Star Swiss lathes. Specialized in small-diameter components for medical, electronics, and defense. Niche expertise creates strong buyer demand and above-market multiples.
Medical Device Machine Shops (ISO 13485)
Shops machining orthopedic implants, surgical instruments, and micro-components for MedTech OEMs. ISO 13485 and FDA registration are premium assets. The medical device machining market is highly acquisitive.
Defense and ITAR-Registered Shops
Shops with active ITAR registration, CMMC compliance, and classified work capability. Defense machining carries a scarcity premium — the regulatory barriers to entry keep competition low and buyer interest high.
How We Sell Machine Shops
Step 1: Confidential Consultation
A private conversation about your shop, your goals, and your timeline. No canned pitch. No public disclosure.
Step 2: Valuation and Equipment Assessment
We review your financials, assess your equipment fleet (age, capability, capacity utilization), evaluate your certifications and customer base, and produce an SDE or EBITDA valuation with comparable transaction benchmarks.
Step 3: Pre-Market Preparation
Most machine shops benefit from 30-90 days of preparation: documenting SOPs, cleaning up financial records, addressing any deferred maintenance on key equipment, and ensuring certifications are current.
Step 4: Confidential Buyer Outreach
We market your shop to our network of strategic buyers, PE-backed manufacturing platforms, and qualified individual operators — all under strict NDA.
Step 5: Negotiation and Close
From LOI to closing typically runs 60-120 days. We manage equipment appraisals, lease assignments, certification transfers, and customer notification protocols. See our full manufacturing M&A process for more details on our approach.
Frequently Asked Questions — Selling a Machine Shop
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A: Machine shop valuations are based on SDE (for smaller owner-operated shops) or EBITDA (for larger operations with management teams). Multiples range from 3x-4.5x SDE for general job shops to 6x-9x EBITDA for certified precision shops with aerospace or medical contracts. Equipment condition, certifications, and workforce stability are the three biggest value drivers.
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A: Yes — significantly. Modern CNC equipment (especially 5-axis, multi-tasking, and Swiss-turn machines) increases your valuation because buyers factor in equipment replacement cost. Older manual equipment or machines past their useful life can discount the valuation. We conduct a detailed equipment assessment as part of every engagement.
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A: AS9100D (aerospace), ISO 13485 (medical), NADCAP (special processes), and ITAR registration (defense) are the highest-value certifications. ISO 9001 is baseline. Each specialized certification represents a barrier to entry that buyers pay a premium to acquire rather than build from scratch.
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A: Most machine shop sales close in 6-12 months from engagement to funding. Shops with clean financials, documented SOPs, and transferable certifications sell faster. Shops that require significant pre-market preparation may take longer.
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A: In nearly every machine shop acquisition, the buyer retains the existing workforce. Skilled machinists are the hardest asset to replace — buyers structure deals specifically to ensure key employees stay. Retention bonuses and employment agreements for key machinists are standard in manufacturing M&A.
Ready to Sell Your Machine Shop?
Start with a confidential consultation. No obligation. No public disclosure. Just honest guidance from people who've stood on the shop floor.
The Precision Firm specializes exclusively in manufacturing, engineering, and industrial business sales. If you own a machine shop — general CNC, precision aerospace, medical device, defense, or specialty machining — this is where you start.