Aerospace & Defense Metal Fabrication Company, 60-Year Connecticut Shop

$4.7M

Revenue

$1.3M

SDE

4.3x

Multiple

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Full Editorial Writeup

This is a 60-year-old custom metal fabrication shop in Middlesex County, Connecticut, serving aerospace and defense customers. The business handles custom manufacturing, fabrication, and installation across a broad materials mix including galvanized steel, black iron, stainless, aluminum, steel plate, and various plastics. Capabilities span shearing, bending, rolling up to half-inch plate, MIG and arc welding, plasma cutting, and PVC welding, and the shop stocks a deep inventory of raw materials so it can turn quotes into finished parts quickly.

The company works to customer specifications and also offers in-house design and engineering, which positions it as more than a commodity cut-and-bend operation. On roughly $4.7M in revenue it throws off $1.3M in cash flow, a 27.6% owner-earnings margin that is strong for a job shop and signals real pricing power or efficiency, likely driven by the higher-spec aerospace and defense work.

At a $5.6M ask (4.31x cash flow) the deal includes $500K of inventory and $500K of FF&E, meaning roughly $1M of the price is hard assets and stocked material. The facility is leased rather than owned, so this is a going-concern operations sale with a durable customer base built over six decades. The seller is retiring, which is a clean and common reason for a business of this vintage.

Why we like it

Earnings quality is genuinely strong for a job shop: $1.3M cash flow on $4.7M revenue is a 27.6% margin, well above the mid-teens typical of commodity fabricators. That premium suggests the aerospace and defense mix commands higher prices and stickier work than general sheet-metal jobs.
Durability comes from 60 years in business and the barriers to entry in defense fabrication, where qualification, certifications, and approved-vendor status take years to earn. A new competitor cannot simply undercut on price and win regulated aerospace and defense contracts overnight.
Defense and aerospace spend is largely non-discretionary and often multi-year, so this revenue holds up better in a downturn than consumer-facing manufacturing. Replacement parts, MRO, and program work continue even when the broader economy softens.
The shop is a real business with real assets: $500K of stocked inventory and $500K of FF&E are included, plus experienced personnel and in-house design and engineering. A buyer inherits capability and material on hand, not just a customer list.

How to improve it

Map customer concentration in the first 30 days and lock in the top accounts with longer-term supply agreements or blanket purchase orders. Converting repeat program work into contracted volume both de-risks the revenue and lifts the exit multiple for the next buyer.
Pursue or verify formal certifications such as AS9100, ITAR registration, and NADCAP where applicable. These credentials expand the set of primes and tier-one suppliers that can legally place orders and directly raise the ceiling on addressable contracts.
Install a shop-floor ERP or MES to track job costing, machine utilization, and quote-to-delivery time. A shop earning 27.6% margins by feel can likely add several points by pricing off real data and cutting rework and idle capacity.
Build a light outbound sales motion targeting defense primes and aerospace tier-ones within driving distance. A 60-year shop with no dedicated sales function almost always leaves demand on the table, and one new program can move the needle materially at this revenue base.
Address the leased facility risk by negotiating a long-term lease with renewal options or evaluating a purchase or relocation. Since the listing is marked relocatable, secure equipment logistics and any customer-facility installation obligations before committing.
Cross-train and formalize the knowledge held by the retiring owner and senior fabricators through documented work instructions and an apprenticeship pipeline. In a specialized shop the value walks out the door on two feet, so retention and succession are core to protecting cash flow.
Add capacity for higher-margin services like precision CNC machining, finishing, or assembly to move up the value chain from cut-and-weld toward finished components. Capturing more of each part's value increases revenue per customer without new customer acquisition.

Diligence notes

Scrutinize customer concentration and contract structure, since aerospace and defense shops often ride on a handful of primes. If one customer is more than 25% of revenue, understand contract length, re-compete risk, and whether relationships transfer with an owner change.
Verify the exact certifications the shop holds (AS9100, ITAR, NADCAP, ISO) and confirm they are current and transferable in a sale. Missing or lapsed certifications would sharply narrow the customer base and undercut the defense premium baked into the valuation.
Normalize the $1.3M cash flow for the retiring owner's actual role, compensation, and any working capital swings from the $500K inventory. Confirm the margin is sustainable and not propped up by owner labor, deferred maintenance, or one-time program spikes.
Review the lease terms carefully given the facility is leased and the listing is marked relocatable. Understand remaining term, renewal options, rent escalation, and the true cost and downtime of relocating specialized heavy equipment if a move is forced.
Assess the age, condition, and remaining life of the FF&E and machinery valued at $500K. Heavy fabrication equipment needs ongoing capex, so confirm what near-term replacement or upgrade spending will be required to maintain output and quality.

Source

Originally listed on BizBuySell. View original listing →