This business is a contract machine shop and manufacturer that conducts design, machining, and assembly of integrated product solutions for the semiconductor, consumer products, and biotech industries. They perform precision work with a wide range of materials including aluminum (70%), stainless steel, copper, bronze, brass, G-10, and thermoplastics. They offer general and specialized CNC precision machining, milling, and finishing to produce high technology parts such as heat sinks, thin-walled parts, motors, electrical connectors, and semiconductor components.
The owner has done a fantastic job of efficiently operating the shop and producing high quality parts that meet the close tolerances required by his clientele. Clients who request production of a part typically provide a CAD step file, a SolidWorks drawing, and occasionally a physical prototype. They will determine the method of manufacture, set pricing, produce a sample part, and upon client approval, produces the parts. Upon completion, they outsource the finishing to local partners as required. Once completed, they either deliver the finished product locally or ship nationwide and internationally. Client requests include new part production, new runs of existing parts, or rework of parts produced incorrectly by other shops (only ~10% of business).
Retirement age is here, so it’s time for the owner to enjoy his golden years, and pass the business on to a qualified successor. The owner built the business to the exact size he was comfortable managing, so there is a great deal of opportunity for an ambitious buyer to grow. The owner does zero active marketing; all current jobs come from either referral or existing clientele. Invest in advertising, marketing, and even social media to increase exposure and grow the client base. The owner only runs a single shift, so there is a great deal of additional capacity in the existing shop to meet increased demand. Additional volume means more revenue and a beefier bottom line!
This business is a well-oiled machine shop, looking for a successor to take it to the next level. Mid-sized machine shops with a high-tech client base and outstanding profits rarely come to market. If you’re looking to own your own shop, or grow by acquisition, this may be the opportunity for you. Questions? Inquire with the Agent today!
