The Premier Manufacturing & Industrial Broker
for Southern California
From the South Bay to San Diego, we help SoCal manufacturers navigate ITAR transfers, environmental compliance, and complex exits.
Why Southern California is Still the Manufacturing Capital
If you read the headlines, you might believe that manufacturing has left California. The reality on the shop floor is very different.
Southern California remains the undisputed heavyweight champion of high-value, high-precision manufacturing in the United States. While commodity manufacturing has moved to cheaper states, the "mission-critical" work—Aerospace, Defense, and Medical Technology—has stayed right here.
At The Precision Firm, we don't buy into the "California Exodus" narrative. We know that Strategic Buyers and Private Equity groups are aggressively hunting for acquisitions in the LA Basin and San Diego for three specific reasons:
The Supply Chain Density: You cannot replicate the proximity of 3,000+ machine shops, finishers, and heat treaters anywhere else in the world.
The Talent Pool: SoCal produces more engineers (CalTech, USC, UCSD, Cal Poly) than almost any other region.
The End-User Access: When your customer is Northrop Grumman (Redondo Beach) or Edwards Lifesciences (Irvine), being within a 1-hour drive is a competitive moat.
We market your business not just on its cash flow, but on its strategic position within this ecosystem.
We Serve the Full SoCal Industrial Spectrum
Whether you run a clean room or a heavy production floor, we have specialized deal teams for your sector.
"Aerospace Alley" (El Segundo, Torrance, South Bay)
We connect the "Aerospace Alley" supply chain with the world's largest defense primes. From El Segundo to Torrance, we understand the value of mission-critical precision.
Our Focus: We work with Tier 2 and Tier 3 suppliers specializing in 5-axis machining, complex assembly, and exotic alloys.
The Buyer Pool: We connect you with "Defense Aggregators"—private equity-backed platforms that are rolling up smaller machine shops to create massive suppliers with pricing power.
Key Value Driver: AS9100 Certification. If you have it, your multiple instantly increases.
The "MedTech Coast" (Orange County & San Diego)
The "MedTech Coast" is one of the world’s most valuable manufacturing hubs. We help owners capture the premium valuations driven by the reshoring of medical devices.
Our Focus: Contract manufacturers producing orthopedic implants, surgical instruments, and injection-molded disposables.
The Buyer Pool: Strategic buyers looking to "reshore" their medical supply chains away from China and back to trusted ISO 13485 partners in California.
Key Value Driver: FDA Registration & Clean Rooms. We know how to document the value of your Class 7 and Class 8 cleanrooms so you get paid for that CAPEX.
Heavy Industry & Machinery (Inland Empire & Gateway Cities)
California remains a powerhouse for heavy industrial production. We understand that your value isn't just in your P&L—it's in your heavy assets, proprietary tooling, and production capacity.
Our Focus: Industrial equipment manufacturers, packaging producers, and heavy metal fabricators supporting the Port of LA/LB.
The Buyer Pool: Logistics and distribution conglomerates seeking to vertically integrate their supply chains.
Key Value Driver: Industrial Zoning. In a region where industrial land is disappearing, your "M2" or "Heavy Industrial" zoning is an asset as valuable as the business itself.
The "California Hurdles": We Speak SCAQMD and ITAR
The SCAQMD Barrier
The Problem: Obtaining new air/water permits in the LA Basin is nearly impossible today.
The Solution: We frame your existing, valid permits as a "Grandfathered Asset." We tell buyers: "You cannot build this factory from scratch. You have to buy it." This turns a regulatory headache into a scarcity premium.
ITAR & FCL Transfers
The Problem: DoD contracts can be voided if transferred to the wrong buyer.
The Solution: We utilize a pre-vetted "Novation Agreement" process. We ensure every bidder is a U.S. Person/Entity and prepare the Department of State paperwork before the Letter of Intent is even signed.
PAGA & Labor Compliance
The Problem: Buyers fear California's "Private Attorneys General Act" lawsuits regarding breaks and overtime.
The Solution: We conduct a pre-sale Labor Audit. We identify payroll vulnerabilities and fix them before due diligence begins, presenting buyers with a "Clean Bill of Health" that stops price retrading..
Valuation: The ”SoCal Premium”
Does it cost more to do business here? Yes. But businesses here also sell for more.
In 2024/2025 data, Southern California manufacturing businesses traded at a premium compared to the national average. Why?
High Barrier to Entry: Competitors can't just open up shop next door due to zoning and environmental laws.
Sticky Revenue: Once you are "specced in" to an Aerospace or Medical print, it is incredibly expensive for the customer to switch suppliers.
Capital Density: There is more private capital (Private Equity & Family Offices) within a 50-mile radius of Newport Beach than almost anywhere else on earth.
Curious what your business would trade for? We don't use "Rules of Thumb." We use recent comps from deals we've closed in Chatsworth, Santa Ana, and Vista. Get A Confidential Valuation
Frequently Asks Questions (FAQs)
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A: If you own your industrial building within the City of Los Angeles and sell it for more than $5M, you may be subject to a 4% or 5.5% transfer tax. However, this only applies to real estate, not the business assets. We often structure deals where the business is sold separately, or we use entity sales (selling the LLC that owns the building) to potentially mitigate this tax. Note: Always consult your tax attorney.
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A: Yes, and in Southern California, we highly recommend it. Industrial real estate in SoCal is among the most valuable in the world. We frequently structure deals where you sell the operating company (OpCo) but retain the property (PropCo), signing a long-term lease with the buyer. This turns your exit into a monthly passive income stream.
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A: It is not unsellable, but it is a major risk factor during due diligence. We help you "normalize" your payroll and prepare a disclosure schedule so that buyers understand the true labor cost. Honesty upfront prevents deals from exploding at the 11th hour.
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A: Timing is critical. California's Franchise Tax Board (FTB) is aggressive. To potentially avoid CA state income tax on the sale, you generally need to have established genuine residency in the new state before the transaction closes. We work with your CPA to map out a "Residency Timeline" that aligns with the deal closing.
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A: On average, 7 to 10 months. The timeline is dictated by the complexity of the diligence (Environmental Phase I/II, Equipment Appraisals, and Contract Novation).
Ready to Exit Your SoCal Business?
Don't trust your legacy to a generalist broker who sells laundromats and coffee shops. You need a team that understands the difference between 3-axis and 5-axis, between Tier 1 and Tier 3, and between an Asset Sale and a Stock Sale.
We are former operators. We speak your language.