Free Small Business Valustion Services
Get a Free Businness Valuation Consultation now! Free Business Valuation Calculator
Popular Biz Valuation Formulas:
All Categories

Site Directory



  Bookmark and Share

Machine Shop Business Valuation Formula:

This is a very general business valuation formula or method for existing and well established (min 3 years) Machine shop businesses based on a multiple of the owners annual adjusted net income or cash flow.

Machine Shop Valuation Formula: Approximately 2 to 2.5 times the owners annual adjusted net income.

Broker Comments: There are many factors that determine the valuing of a machine  or job shop and I would highly recommend getting a business valuation consultation from a professional appraiser. One of the biggest negative issues I have run into listing and selling machine shops is customer concentration where the seller's business had  just 1 or 2 major accounts that generated 50% or more of all sales. One of the more positive aspects I have noticed is that because there are generally some real hard assets involved in the form of equipment getting bank financing tends to be a little easier for qualified buyers.

Need a business valuation or appraisal report for legal, personal, or selling purposes? Request a free & confidential preliminary consultation about your established machine shop business here.
Note: Always contact and consult with a Business Broker, Business Appraiser, or financial adviser who is familiar with the dynamics of your local market and economy.