Precision manufacturing company in New York, sold for $3.5M

A New York precision manufacturing company sold for $3.5M at 4x EBITDA. Precision manufacturers with certified quality systems, capable equipment and repeat customers are in steady demand from strategic buyers, private equity add-ons and individual operators.

Sale price
$3.5M
EBITDA multiple
4x
Location
New York
Industry
Manufacturing

What buyers look for in a precision manufacturer

Customer concentration

Buyers look at how much revenue comes from the top customers. A spread of repeat accounts across industries protects value.

Quality certifications

Certifications such as ISO 9001, AS9100 or ISO 13485 open doors to aerospace, defense and medical device work and signal a documented process.

Equipment and capacity

The age and capability of CNC and inspection equipment, and how much capacity remains, tell a buyer what growth will cost.

Skilled machinists and programmers

A trained team that stays after closing is often the deciding factor for a buyer in a tight labor market.

How we run a sale like this

  1. 1

    Valuation and preparation

    We start with a valuation grounded in closed deals, then recast the financials and build the confidential information memorandum buyers will review.

  2. 2

    Confidential outreach

    The business is presented anonymously to qualified buyers from our network of 8,100+ and on major marketplaces. Buyers sign an NDA before they learn the name.

  3. 3

    Competing offers

    We run several buyers through the process at the same time, so letters of intent arrive close together and price is set by competition.

  4. 4

    Diligence and closing

    We manage diligence requests, keep the deal on schedule and work with the owner's attorney and CPA through closing.

Questions owners ask

How much is a precision manufacturing business worth?

Manufacturing businesses are usually valued on a multiple of EBITDA. The manufacturing deals on our record sold between 3.6x and 4.2x EBITDA, including this $3.5M New York precision manufacturer at 4x.

Who buys machine shops and precision manufacturers?

Larger manufacturers adding capability or capacity, private equity backed manufacturing platforms making add-on acquisitions, and experienced operators buying their first company.

What lowers the value of a manufacturing business?

Heavy reliance on one or two customers, aging equipment that needs replacement soon, an owner who is the only person who can quote or program jobs, and financials that mix personal and business expenses.

How long does it take to sell a manufacturing company?

Most of our transactions close in 6 to 9 months, and most clients receive a letter of intent within 60 days.

What would yours sell for?

See where your business sits before you talk to anyone.

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