Nadcap & AS9100D Aerospace CNC Manufacturer - $1.08M Annualized SDE
Business Description
$1M in Recent Equipment Investment, 20+ Yr Experience, Scalable
This established precision CNC machining company represents a strategic acquisition opportunity in the aerospace and defense manufacturing sector. Operating for over 20 years, the organization specializes in manufacturing custom hydraulic fittings, ring-lock fittings, and AS/MS specification fluid fittings for aerospace, defense, and commercial aviation applications.
CERTIFICATIONS AND COMPETITIVE ADVANTAGES
The company maintains AS9100 Rev. D and ISO 9001:2015 certifications and holds Nadcap accreditation for Fluid Distribution Systems. These certifications create significant barriers to entry and provide access to quality-critical aerospace and defense contracts. Manufacturing capabilities include complex, close-tolerance components with reported tolerances of ±0.0005 inch.
FINANCIAL PERFORMANCE
Revenue demonstrates consistent growth trajectory, increasing from $1.45 million in 2023 to $1.62 million in 2025. Preliminary first-half 2026 results indicate $868,000 in revenue with $539,000 in normalized Seller's Discretionary Earnings. Annualized projections based on current performance suggest $1.74 million revenue and $1.08 million SDE.
The business operates under a customer-furnished-material model, whereby clients provide raw materials for production. This structure reduces working capital requirements, minimizes commodity price exposure, and enhances job profitability predictability.
PRODUCTION INFRASTRUCTURE
The facility operates approximately 24 machines with $982,000 in recorded equipment value. Significant capital investments between 2021-2025 resulted in a modern production platform featuring Takisawa CNC lathes, Brother machining centers, Mori Seiki and OKK milling equipment, and Hardinge precision machinery. Quality control capabilities include optical comparators, micrometers, calipers, and specialized inspection equipment.
WORKFORCE AND OPERATIONS
The organization employs seven full-time personnel plus active ownership. The workforce demonstrates exceptional stability, with the shortest-tenured employee maintaining over two years of service. Current operations span Monday through Friday 6:00 AM to 4:30 PM and Saturday 6:00 AM to 12:00 PM, totaling 58.5 weekly production hours.
GROWTH OPPORTUNITIES
Immediate expansion potential exists through implementation of dual-shift operations, which would increase weekly production coverage to 78.5 hours (34% increase). Management reports declining numerous orders due to capacity constraints, indicating substantial unmet demand. Additional opportunities include expanding existing customer programs, adding quality control personnel, implementing production management infrastructure, and pursuing new certified manufacturing programs.
CUSTOMER BASE
The company serves established aerospace component manufacturers, aircraft fastener suppliers, defense contractors, and industrial companies operating under stringent quality specifications. Customer relationships demonstrate remarkable longevity, including a 20-year partnership with the largest client, reflecting the organization's reliability and service excellence.
This acquisition presents an opportunity to acquire a profitable, well-positioned manufacturer with modern equipment, experienced workforce, and immediate scalability potential in the growing aerospace and defense sectors.
Simplified SBA Cash-Flow Analysis with current 2026 annualized SDE:
Purchase Price: $4,800,000
Buyer Down Payment: 10%
Loan Term: 10 years
Interest Rate: 10%
Preliminary Annualized SDE: $1,078,457
Buyer down payment: $480,000
Estimated SBA loan: $4,320,000
Estimated monthly loan payment: $57,089
Estimated annual debt service: $685,069
Annual cash flow after debt service: $393,388
Monthly cash flow after debt service: $32,782
Estimated down-payment recovery period Approximately: 14.6 months
Debt service coverage ratio: 1.57x
Qualified buyers will be required to sign NDA, provide relevant operating or management experience and Proof of Fund.
CERTIFICATIONS AND COMPETITIVE ADVANTAGES
The company maintains AS9100 Rev. D and ISO 9001:2015 certifications and holds Nadcap accreditation for Fluid Distribution Systems. These certifications create significant barriers to entry and provide access to quality-critical aerospace and defense contracts. Manufacturing capabilities include complex, close-tolerance components with reported tolerances of ±0.0005 inch.
FINANCIAL PERFORMANCE
Revenue demonstrates consistent growth trajectory, increasing from $1.45 million in 2023 to $1.62 million in 2025. Preliminary first-half 2026 results indicate $868,000 in revenue with $539,000 in normalized Seller's Discretionary Earnings. Annualized projections based on current performance suggest $1.74 million revenue and $1.08 million SDE.
The business operates under a customer-furnished-material model, whereby clients provide raw materials for production. This structure reduces working capital requirements, minimizes commodity price exposure, and enhances job profitability predictability.
PRODUCTION INFRASTRUCTURE
The facility operates approximately 24 machines with $982,000 in recorded equipment value. Significant capital investments between 2021-2025 resulted in a modern production platform featuring Takisawa CNC lathes, Brother machining centers, Mori Seiki and OKK milling equipment, and Hardinge precision machinery. Quality control capabilities include optical comparators, micrometers, calipers, and specialized inspection equipment.
WORKFORCE AND OPERATIONS
The organization employs seven full-time personnel plus active ownership. The workforce demonstrates exceptional stability, with the shortest-tenured employee maintaining over two years of service. Current operations span Monday through Friday 6:00 AM to 4:30 PM and Saturday 6:00 AM to 12:00 PM, totaling 58.5 weekly production hours.
GROWTH OPPORTUNITIES
Immediate expansion potential exists through implementation of dual-shift operations, which would increase weekly production coverage to 78.5 hours (34% increase). Management reports declining numerous orders due to capacity constraints, indicating substantial unmet demand. Additional opportunities include expanding existing customer programs, adding quality control personnel, implementing production management infrastructure, and pursuing new certified manufacturing programs.
CUSTOMER BASE
The company serves established aerospace component manufacturers, aircraft fastener suppliers, defense contractors, and industrial companies operating under stringent quality specifications. Customer relationships demonstrate remarkable longevity, including a 20-year partnership with the largest client, reflecting the organization's reliability and service excellence.
This acquisition presents an opportunity to acquire a profitable, well-positioned manufacturer with modern equipment, experienced workforce, and immediate scalability potential in the growing aerospace and defense sectors.
Simplified SBA Cash-Flow Analysis with current 2026 annualized SDE:
Purchase Price: $4,800,000
Buyer Down Payment: 10%
Loan Term: 10 years
Interest Rate: 10%
Preliminary Annualized SDE: $1,078,457
Buyer down payment: $480,000
Estimated SBA loan: $4,320,000
Estimated monthly loan payment: $57,089
Estimated annual debt service: $685,069
Annual cash flow after debt service: $393,388
Monthly cash flow after debt service: $32,782
Estimated down-payment recovery period Approximately: 14.6 months
Debt service coverage ratio: 1.57x
Qualified buyers will be required to sign NDA, provide relevant operating or management experience and Proof of Fund.
About the Business
- Years in Operation
- 5
- Employees
- 7 Full-time
- Facilities & Assets
- The company operates from approximately 4,500 square feet across four adjacent industrial suites.
Beginning November 2026, lease terms include:
Base rent: $6,750 per month
CAM: Approximately $360 per month
Initial total occupancy cost: Approximately $7,110 per month
Lease expiration: October 31, 2029
Scheduled annual rent increases: Provided under the current lease amendment
Lease assignment, landlord approval and any available renewal rights will be subject to review and confirmation during due diligence.
CNC lathe machines and CNC mill machines including:
Takisawa CNC lathe TC-10 6″ chuck
Takisawa CNC lathe TC-20 8″ chuck
6 Takisawa TC-200 8″ chuck
4 Takisawa TCN 2100 L6 8″ chuck
2 Takisawa TCC 2100 L3 8″ chuck
1 Takisawa TCC 1100 L2 6″ chuck
Mori Seiki Duraturu 8″ chuck
OKK V1 milling machine with Hardinge Rotary table
Takisawa TA 25 Dual Spindel
Mori Seiki Mill SV 50
Hardinge CHNC Precision
Sharp Manual Lathe
Bridgeport Manual Mill
Reed Thread Roll - Market Outlook / Competition
- The market is fragmented among general machine shops, specialized aerospace suppliers and vertically integrated manufacturers. Competitive barriers include aerospace quality-system discipline, Nadcap scope, customer qualification history, inspection capability, process knowledge, skilled labor and capital equipment. The Company differentiates through its AS9100D / ISO framework, Nadcap Fluid Distribution Systems accreditation, long customer tenure, customer-supplied materials and a substantial production platform. The business should not be marketed as having no competition or guaranteed demand.
- Opportunities for Growth
- The principal expansion opportunity is greater utilization of the existing 24-machine platform. Current scheduled coverage is approximately 58.5 hours per week. Management has identified a two-shift concept that could expand scheduled coverage to approximately 78.5 hours per week, an increase of about 34%, without immediately requiring a comparable investment in additional machinery. Execution requires recruiting and retaining machinists/operators, dedicated QC and inspection coverage, production supervision, maintenance support, verified customer demand and adequate working capital. Other opportunities include accepting profitable work currently constrained by capacity, deepening existing approved-customer programs, improving quoting and job-costing discipline, and diversifying the customer base.
Real Estate
- Owned or Leased
- Leased
- Building Sq. Ft.
- 4,500
- Rent
- $7,110 per month
- Lease Expiration
- 10/31/2029
About the Sale
- Seller Motivation
- Retirement
- Transition Support
- Four weeks of seller transition support at 20 hours per week are included in the purchase price. Because the owner currently handles broad operational and commercial responsibilities, a qualified buyer should negotiate a detailed responsibility-transfer plan covering customer relationships, quoting, scheduling, purchasing, production supervision, quality/inspection, certification continuity and employee handoff. Additional paid consulting may be negotiated separately.
Listing Info
- ID
- 2549590
- Listing Views
Listing ID: 2549590 The information on this listing has been provided by either the seller or a business broker representing the seller. BizQuest has no interest or stake in the sale of this business and has not verified any of the information and assumes no responsibility for its accuracy, veracity, or completeness. See our full Terms of Use. Learn how to avoid scams.
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