Selling a Metal Fabrication Business in Texas

Metal Fabrication

I participated in the sale of a metal fabrication shop. I know the difference between book value and real value on a press brake, the danger of holding obsolete inventory, and the cash demands of long-cycle projects.

What buyers actually scrutinize

Buyers dig into customer concentration, the age and condition of heavy machinery, and the reality of your WIP (work in progress) accounting — whether you're a fab shop, a machine shop, or a CNC job shop.

What kills multiples

Having one customer account for 30% of revenue tends to weigh heavily on a multiple. Outdated equipment that requires immediate CapEx post-close can also draw significant price discounts.

What you should fix now

Diversify your customer base even if it means taking slightly lower margin work. Clean up your inventory — write off the dead steel you've been holding for three years. Standardize your quoting process.

The closing mechanics

The working capital true-up is brutal in fabrication because of inventory valuation and WIP. You must have airtight accounting on what a half-finished job is actually worth at the exact moment of closing.

How much is a metal fabrication business worth?

The method — adjusted EBITDA, add-backs, what moves a multiple — is covered on the valuation page. What's specific to this trade:

Equipment appraisal vs book value
Backlog that survives diligence
Customer concentration

[Placeholder — 400–600 words to be written by the owner, covering the topics above. Any stated range must be attributed to a named source with a date, and must describe the market in general — never the reader's own business.]