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ON-MARKET
MACHINE SHOPS & TOOLS

Nadcap & AS9100D Aerospace CNC Manufacturer - $1.08M Annualized SDE

Orange County, CA

$4.8M
Asking Price
$1.7M
Revenue
$1.1M
Cash Flow

Overview

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.

Key Details

Year Established2021
StateCA
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