Company Overview

PRIME exits® is proud to be the exclusive representative of a well-established precision metal fabrication company serving the aerospace, defense, and industrial equipment sectors from its facility in the Midwest. With over 25 years of operating history, the company has earned a reputation for tight-tolerance CNC machining, weld fabrication, and finishing services that meet the demanding quality standards of AS9100 and ISO 9001-certified supply chains.

The company manufactures precision components, subassemblies, and finished parts for OEMs and Tier 1 suppliers across aerospace, defense, and heavy industrial equipment. Its client base includes long-standing contracts with several publicly traded manufacturers, many of which have been in place for 8+ years. The company is known for its in-house engineering support, rapid prototyping capability, and a vertically integrated production floor that reduces reliance on outside vendors.

A team of certified welders, machinists, and quality engineers supports a stable, cross-trained workforce with low turnover. The company operates modern CNC equipment (5-axis milling, CNC turning, and robotic welding cells) alongside a documented QA/QC system that has passed every customer and regulatory audit for the past five years.

Financial Review

Revenue: $12.8 Million Normalized EBITDA: $2.3 Million (18%)

The business is capital-intensive but well-invested, with recent equipment purchases already reflected in current margins. EBITDA has grown steadily over the trailing three years, driven by increased throughput and a shift toward higher-margin, tighter-tolerance work. Backlog extends 9–12 months out across its top five customers.

Reason for Exit

The founder, now in his late 60s, is looking to retire after building the company from a single machine shop. He is open to a transition period to support customer relationships and knowledge transfer.

Asking Price & Deal Structure

Asking Price: $16.1 Million (7× EBITDA)

Sample Deal Structure:

• 75% cash at closing

• 15% seller note over 3 years

• 10% earn-out tied to retention of top two customer contracts

• Founder available for a 12-month transition/consulting period

Ideal Buyer

Ideal buyers include strategic manufacturers seeking to expand precision machining capacity, private equity groups building an industrial fabrication platform, and larger Tier 1 suppliers looking to bring fabrication capability in-house. The certified quality systems and entrenched OEM relationships make this an attractive platform or bolt-on acquisition.