How much does a CNC Machine Shop cost to buy?

A typical CNC Machine Shop sells for 2.8x to 4.4x seller's discretionary earnings. With estimated SDE of $264K, expect to pay roughly $739K to $1.2M before adjustments for assets, debt, growth, and local market quality.

How much does it cost to start a CNC Machine Shop?

Startup costs range from $250K to $2.0M depending on location, equipment, and scale.

Physical

CNC Machine Shop

Q: What are the profit margins for a CNC Machine Shop?

The average profit margin for a CNC Machine Shop is around 22%. Main costs are machinist labor, raw materials, tooling, machine maintenance, rent, metrology and QA, software, and utilities. Returns depend on machine utilization, setup efficiency, and avoiding rework.

Precision parts, ugly websites, and customers who care more about tolerances than branding

Bottom line

Worth studying, but do not buy without strong local proof.

CNC machine shops produce precision components, prototypes, tooling, and short-run parts for industrial and commercial customers. BizBuySell's machining and tooling benchmarks show median revenue of $1.09 million, median owner earnings of $269,438, and average earnings multiples of 3.45x, with 2025 buyers often paying at or above asking price. The surprising angle is that a shop with a few sticky OEM relationships and underutilized machines can become a quiet cash generator with real strategic value to larger buyers.

See listings →Compare ↔

Share LinkedInReddit HN

Acquisition score

Fair

Avg Revenue

$1.2M

Profit Margin

22%

Acquisition Multiple

2.8x - 4.4x

Startup Cost

$250K - $2.0M

How It Works

Customers send drawings or CAD files, the shop quotes the job, programs CNC machines, sources raw material, and produces parts to specification. Revenue comes from repeat production runs, prototyping, tooling, and rush jobs. Shop value rises with customer diversification, machine utilization, QA systems, and the ability to keep tribal knowledge in process docs instead of the owner's head.

Revenue Range

Low End

$500K

Typical

$1.2M

High End

$4.0M

Real Acquisitions in This Category

SBA 7(a) change-of-ownership loans · NAICS 332710 · Machine Shops

Deals tracked

170

62 in last 24 mo

Median loan

$1.0M

$350K–$2.3M p25/p75

Implied deal size

$1.2M

median · ~85% LTV

Charge-off rate

—

not enough resolved loans

Deal Size Distribution

<$150K

$150K–500K

$500K–1M

$1M–2M

>$2M

Deal Flow Over Time

12-month momentum

-41.0%

deal volume vs prior 12 mo

Median loan Δ

+40.2%

23 recent · 39 prior

Financing Profile

Median rate

9.25%

19% fixed · last 24 mo

Median term

120 mo

standard 10-yr

Collateralized

of loans secured

Median jobs

supported per deal

Top lenders in this space

Live Oak Banking Company12

The Huntington National Bank8

Byline Bank8

Old National Bank7

Northwest Bank5

Where deals happen

WI22

IL16

MN15

CA14

TX13

FL9

PA8

OH8

NC7

AZ6

Recent Comparable Deals

Closed	State	Loan	Implied deal	Jobs	Franchise
Mar 2026	WI	$3.6M	$4.2M	24	—
Feb 2026	WI	$2.0M	$2.4M	9	—
Feb 2026	TX	$3.5M	$4.1M	16	—
Feb 2026	TX	$325K	$382K	16	—
Jan 2026	MI	$3.8M	$4.5M	22	—
Jan 2026	MI	$400K	$471K	22	—
Jan 2026	WI	$200K	$235K	18	—
Jan 2026	WI	$2.0M	$2.4M	18	—
Dec 2025	TX	$3.9M	$4.6M	28	—
Dec 2025	TX	$400K	$471K	28	—

Volume rank #47/544Deal-size rank #140/544Momentum rank #303p90 loan: $3.5MData as of Mar 2026

Source: SBA 7(a) FOIA dataset, filtered to acquisitions (loans where business age is "Change of Ownership"). Implied deal size assumes an 85% loan-to-purchase ratio, a common SBA change-of-ownership structure. Charge-off rate shown only when 10+ loans have resolved (paid in full or charged off). Interest rates reflect last 24 months only. Actual deal values vary with equity injections, seller financing, and working capital terms.

Pros

+Sticky B2B customers once quality and lead times are proven
+Asset base creates a real moat in local markets
+Can win higher multiples than many Main Street businesses
+Strategic buyers care about capacity, certifications, and customer relationships

Cons

-Heavy capex and maintenance burden
-Skilled machinist recruiting is tough
-Customer concentration and project cyclicality can be dangerous

Best For

Operators or buyers who understand industrial sales, process discipline, and capex planning

Operating Costs

Main costs are machinist labor, raw materials, tooling, machine maintenance, rent, metrology and QA, software, and utilities. Returns depend on machine utilization, setup efficiency, and avoiding rework.

SBA Financing Estimator

Adjust the deal — see if it cash flows after debt service

$-8036/mo

after debt service

Deal price — $2.8M

Range: $2.8M (2.8×) to $6.5M (4.4×+)

Down payment — 15% ($414K)

SBA minimum equity injection is 10% for change-of-ownership

Interest rate — 9.25%

SBA median for this category: 9.3%

Loan term — 10 years (120 mo)

SBA median for this category: 120 months

Down payment

$414K

15% equity injection

Loan amount

$2.3M

85% SBA-financed

Monthly payment

$30K/mo

$1.3M total interest

Monthly profit

$22K/mo

at 22% margin

Monthly cash flow after debt service

$-8036/mo

Margin does not cover debt service at these terms. Lower the deal price, increase the down payment, or extend the loan term.

Estimates only. Excludes owner compensation, capex, working capital draws, and taxes. Margin assumes average occupancy and volume. Actual SBA terms vary by lender and borrower profile.