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LouisvilleBusiness Brokers Group(502) 555-0138
Business sales

Sell a Machine Shop

A seller resource from Louisville Business Brokers Group

Your machines are part of the value, but a buyer also needs the people, quoting knowledge, and repeat work that keep the shop earning. Prepare those records together.

A machine shop owner and technician wearing safety glasses examine a finished metal component.

Separate the asset list from the business value

List machines, accessories, software, and tooling with their ownership and finance arrangements. Note maintenance needs and equipment that is idle or no longer economical.

An equipment estimate and a business valuation answer different questions. Explain earnings and transferability alongside the assets rather than adding unrelated estimates into one asking price.

Make the order book understandable

Distinguish firm orders from enquiries and verbal forecasts. Show how repeat parts, project jobs, and emergency work contribute to the shop's revenue.

Explain lead times, rework, late deliveries, and customer concentration. A buyer needs to judge the quality of the workload, not simply its headline amount.

Document what lives in the owner's head

Record how jobs are quoted, scheduled, inspected, and handed over. Identify the people who know the programmes, setup requirements, and customer expectations.

Check ownership and permitted use of drawings, programmes, and customer information with advisers. Do not assume every file can be passed to any prospective buyer.

Present defensible earnings

Review material costs, overtime, repairs, and outside processing. Show unusual expenses separately, with supporting records and an explanation.

If the owner works on the floor or manages estimating, include the cost of replacing that work when discussing earnings. An unpaid role does not become free for the buyer.

Decide how the premises fit

Bring the lease or property details into the sale discussion early. Utilities, access, machine relocation, and landlord consent can affect the buyer's practical options.

You can explore the business and property together without assuming they must have the same buyer. The right approach depends on the transaction and your goals.