B2B and Industrial · Seller's Guide

How to Sell a Machine Shop or Tool and Die Maker

Machine shops sell on equipment, customer contracts, and skilled labor. Here is how CNC capacity and accounts set the value.

Get a Free Valuation How It's Valued

Why It's Different

What makes selling a machine shop different

A machine shop's value is anchored by its equipment and capabilities, CNC mills and lathes, multi-axis capacity, tooling, and any certifications (ISO, or AS9100 for aerospace) that qualify it for demanding work. That equipment and capability set the productive ceiling.

Customer contracts and skilled machinists drive the rest. Long-term customer relationships, repeat purchase orders and any supply agreements, and a trained, hard-to-replace workforce make revenue durable. Customer concentration and industry exposure (aerospace, medical, defense) are key diligence points.

How It's Valued

What is a machine shop worth?

Most buyers value a machine shop on a multiple of Seller's Discretionary Earnings (SDE), your profit plus the owner's salary and the personal expenses run through the business.

Machine shops are typically valued on a multiple of SDE or adjusted EBITDA, commonly around 3 to 5 times for well-equipped, certified shops with diversified customers, plus the value of equipment and any real estate. I rebuild earnings with proper add-backs and present your equipment, certifications, and customer base clearly.

A broker's job is to rebuild your SDE with the right add-backs so your true earning power, not just the tax-return bottom line, sets the price. Get a free, confidential valuation →

Confidentiality

Selling without your staff or competitors finding out

Selling a machine shop works best when no one finds out until the right moment. Employees, competitors, customers, and suppliers learning early is the number-one fear owners have, and for good reason, it can cost you staff and revenue mid-sale. I market every business with a blind profile: a teaser that describes the opportunity, the numbers, and the area only in general terms, and never names your business. Every buyer is screened and signs a non-disclosure agreement before they learn which business is for sale. Your team keeps working, your customers keep coming, and your sale stays private until it closes.

What's your machine shop actually worth?

Get a free, confidential valuation, built on your real numbers, with no obligation.

Request My Valuation

Frequently Asked Questions

Selling a machine shop, answered

CNC machines, tooling, and support equipment are valued on type, age, condition, capability, and remaining life, and they are central to a machine shop's worth. A documented equipment schedule and maintenance records support a stronger price.

It can. Heavy reliance on one or two customers is a risk buyers discount for, while a diversified base of repeat customers and any long-term agreements raises value. We present your customer mix and contracts, and address concentration honestly.

Yes. Quality certifications qualify a shop for higher-value, demanding work in aerospace, medical, and defense, and make it more attractive and valuable to buyers. We highlight your certifications and the work they enable.

About Your Broker

Martin Navarro, Business Broker

Martin Navarro is a California business broker, DRE #02372118, and a U.S. Marine Corps veteran. He is bilingual in English and Spanish and a member of the California Association of Business Brokers (CABB), the International Business Brokers Association (IBBA), ACG Los Angeles (Association for Corporate Growth), and the Santa Clarita Valley Chamber of Commerce. Gas stations, car washes, self-storage, and other businesses with real estate are a specialty within his full-service brokerage practice. Martin serves business owners across Los Angeles, the Inland Empire, Ventura, and Orange County, and throughout Southern California.

Get a Free, Confidential Valuation

Tell me about your machine shop. Every inquiry is confidential and there is no obligation.