Your shop may depend on years of practical knowledge that never appears on the balance sheet. Tucson Business Brokers Office helps you frame a valuation inquiry around what a buyer can actually take over.
A machine list does not explain the shop
List the equipment, then connect it to the work it supports. Capacity, maintenance and programming knowledge matter alongside purchase price. Avoid counting leased or financed machines as unencumbered assets.
Separate repeat production work from prototypes and unusual projects. Show margins where your records support them. A large order book is less persuasive if the cost to complete those jobs is unclear.
- Equipment ownership, finance balances and service history.
- Job costing and the labor assumptions behind quotations.
- Customer revenue history and contract assignment questions.
- Who controls programs, drawings, tooling and quality records.
Find the knowledge that leaves when you leave
If only you quote complicated jobs or fix a setup problem, write down the process and identify who can learn it. A buyer may need a transition that is longer than a few introductions.
Keep customer drawings and restricted technical information out of the first inquiry. Access to sensitive materials needs its own agreement and, where relevant, a review of contractual restrictions.
One customer can change the whole discussion
Recurring purchase orders can support a strong business, but reliance on one account creates a different risk from a diversified book. Explain the relationship and the evidence for continuity.
Start with resolve customer concentration before going to market and prepare equipment records for a business valuation.
If you own the shop building, also review business and building value. Request an assessment when you can summarize the shop and its earnings.
