ANAHEIM & NEARBY ORANGE COUNTY
Sell a Precision Machining Business
Anaheim Business Broker Service connects machine shop sellers with an independent valuation partner.
A machining sale depends on more than a machine list. Buyers examine repeat orders, inspection records, skilled staff and the cost of maintaining production.
Separate your backlog from customer concentration
Show sales and gross margin by customer over several years. Explain whether the backlog represents firm purchase orders or estimates that may never become work.
One large account can make a profitable shop vulnerable. Prepare a factual explanation of its contract, renewal history and relationships without promising future orders.
Describe what is actually being transferred
List machines, tooling, programs and inspection equipment. Identify liens, leases and customer owned tooling so the buyer understands the asset package.
Have counsel review any restrictions on sharing technical files. A confidentiality agreement is a starting point, not permission to disclose everything.
Normalize earnings for the work you perform
Document time spent quoting, programming and managing quality. A replacement manager or specialist may be a real cost in a buyer's model.
Keep maintenance records and expected capital spending beside the financial statements. Equipment condition can change the meaning of an earnings addback.
Bring an organized earnings file
For the machining earnings file, review seller discretionary earnings before discussing an asking price.
For your machining asset package, compare the working capital terms with the proposed asset package.
Put your questions beside your numbers
Use the seller estimate form to describe your machining operation. You can ask about customer continuity and transfer documents before deciding whether to pursue a sale.
For a conversation, call (714) 555-0162.