Machine Shop Business Valuation
Machine Shop Valuation Calculator & Exit Planning Built for Precision Manufacturing Owners
We built one platform that tracks your machine shop's value monthly, identifies exit gaps early, and ensures your personal finances align with your exit timeline.
1,000+ Businesses have joined YourExitValue.com
Most Machine Shop Owners Have No Idea What Their Business is Actually Worth
Current Machine Shop Valuation Multiples (2026)
Machine shop valuations depend on equipment sophistication, customer concentration, and capabilities. Here's the market:
Every business is different. That's why you need to track your value.
Included in Your Exit Value is a complete Exit Planning Assessment where you track your progress quarterly against your results from the previous quarter.
Know your number and watch it grow
Most business owners guess at their value. You'll know it with precision.
Our platform uses six proven valuation methodologies to give you a complete picture of what your business is worth today—and tracks how that number changes month over month. No more waiting for annual appraisals or paying $15K+ for outdated reports.
See your trends. Spot opportunities. Make informed decisions
What Actually Drives Machine Shop Value
Your machining precision matters, but sophisticated buyers evaluate these factors that determine premium pricing:
Equipment Capability
Modern CNC Machines
CNC capability is fundamental—modern multi-axis machines with current controllers command premium pricing for the shop. Buyers assess machine age, capabilities, and condition carefully. Shops with manual equipment only or aging CNC have limited capability and may require buyer investment to compete effectively.
Outdated equipment = capability gap
Customer Concentration
No Customer > 20% Revenue
What happens if your biggest customer moves work offshore or switches vendors? Concentration risk is real—buyers heavily discount shops where one or two customers dominate revenue. Diversify across industries and customers; no single account should represent more than 20% of your revenue.
Concentrated = dangerous dependency
Machinist Team
Skilled Operators Retained
Skilled machinists are increasingly rare. If you're running all the machines yourself, you have a job, not a scalable business. Having trained operators who set up and run jobs independently demonstrates capacity. Machinist retention matters—these skills take years to develop.
Owner-only machinist = key person risk
Quality Certifications
ISO, AS9100, or Industry Standards
Quality certifications open doors to work that non-certified shops can't access. ISO 9001 is common; AS9100 for aerospace, IATF for automotive. Certifications require systems and discipline but enable higher-value work. Certified shops attract customers who require documented quality.
No certification = limited market access
Industry Focus
Defined Sectors Served
General job shops compete on price. Shops focused on specific industries—aerospace, medical, defense, automotive—develop expertise, relationships, and certifications that generalists can't match. Clear industry focus often enables better pricing and more predictable work.
Generalist = commodity competition
Recurring Work
Repeat Customers, Blanket Orders
One-time job shops have unpredictable revenue. Shops with recurring work—repeat customers, blanket orders, scheduled production runs—have more predictable cash flow. Track your repeat business percentage; it demonstrates customer relationships and forecasting ability.
One-time jobs = unpredictable revenue
How to Value a Machine Shop
The U.S. machine shop industry includes approximately 20,000 shops generating over $45 billion in annual revenue. Machine shops provide precision CNC machining, turning, milling, grinding, and EDM services for aerospace, defense, medical, automotive, and industrial clients.
EBITDA or SDE is used depending on shop size. Machine shops typically sell for 2.0x to 4.0x SDE, or 3.0x to 6.0x EBITDA for larger operations. Shops with aerospace/defense certifications, modern CNC equipment, and diversified customer bases command the highest multiples.
Revenue multiples generally range from 0.30x to 0.60x annual revenue. Shops with AS9100 or ITAR certifications for aerospace and defense work achieve the upper end.
The unique valuation factor for machine shops is the certification portfolio, equipment technology, and customer diversification. Industry certifications — ISO 9001, AS9100 (aerospace), ITAR (defense), ISO 13485 (medical devices) — open access to high-value customer segments that require certified suppliers. CNC equipment age, capability, and utilization rates directly impact productivity and value. Customer concentration is the primary risk: a shop where one customer represents 40%+ of revenue faces significant discount. Shops with proprietary fixturing, programming expertise, and the ability to run lights-out production demonstrate operational sophistication.
Machine shop M&A has been active as manufacturing reshoring increases demand for domestic precision machining. Use our free calculator above to get your instant estimate, then track your value monthly with YourExitValue.
Frequently Asked Questions
What multiple do machine shops sell for?
Most machine shops sell for 2.5x – 4.0x SDE or 4x – 6.5x EBITDA. Shops with modern CNC equipment, quality certifications, and diversified customers command the higher end.
How does equipment affect machine shop value?
Significantly. Modern CNC machines with current controllers are valuable assets. Shops with only manual equipment or aging CNC have limited capability that impacts valuation.
Who buys machine shops?
Larger manufacturing companies seeking capacity, PE-backed precision manufacturing platforms, OEMs bringing machining in-house, and individual buyers with manufacturing experience.
Should I get ISO certification before selling?
If you can achieve it, yes. ISO 9001 or industry-specific certifications (AS9100, IATF) open doors to work that non-certified shops can't access.
How important is customer diversification?
Critical. Buyers heavily discount concentration risk. Diversify so no single customer exceeds 20% of revenue. Multiple industries reduce sector-specific risk.
What's the fastest way to increase my machine shop value?
Three high-impact moves: 1) Diversify customer base to reduce concentration, 2) Pursue quality certification to access better work, 3) Train machinists so you're not running all machines yourself.