A Silicon Valley CNC and sheet metal shop sold within six months despite a tight timeline, customer concentration, and a $500K work-in-progress complication.
The owner operated a precision manufacturing operation in Silicon Valley specializing in CNC machining, sheet metal fabrication, and custom assemblies. The business demonstrated strong customer loyalty and above-average profitability. A stable team had been in place for years.
A family health emergency created urgency around the sale timeline. The owner required exit within six months while identifying a buyer who understood the business's true value and would preserve its legacy.
Six months from engagement to close required efficiency without compromising quality across marketing, diligence, and negotiation phases.
Approximately half of revenue originated from one established customer relationship. That demonstrated strength but potentially concerned buyers who prefer more diversified revenue streams.
The company had invested over $500K in materials and outsourced services for undelivered, uninvoiced work. Valuation uncertainty existed regarding when and how that would convert to recognized revenue.
The long-serving accountant was already overextended, threatening deal momentum without additional support capacity.
Strategic identification of buyers experienced in contract manufacturer acquisitions and comfortable managing customer concentration risk — rather than casting a wide net and filtering reactively.
Direct discussion of strengths, challenges, customer history, future revenue, and actual risk placement maintained momentum through transparency rather than managed disclosure.
Honest framing of risk doesn't scare off the right buyer — it builds credibility with aligned partners.
A $400K holdback at closing, paid out in phases as milestones hit — customer orders received, parts shipped — replaced contentious inventory accounting debates and gave both sides a structure they could stand behind.
The advisor network provided vetted support, coordinated with the company's CPA, and facilitated onboarding beyond typical broker responsibilities. Deals don't stall on big issues — they stall on small operational gaps left unaddressed.
The sale closed within the planned six-month window. A family office with contract manufacturer acquisition experience acquired the company — a strong strategic alignment. The seller remained engaged for a 12-month transition period, ensuring continuity for the team and the key customer relationship.
A candid, confidential conversation about where you are and what makes sense next — no pitch, no obligation.