Buy a Machine Shop in Aurora, CO

Aurora's Machine Shop Market: What You're Actually Buying Into

Aurora sits adjacent to Denver's aerospace and defense corridor, which feeds a steady industrial demand that smaller markets simply don't have. Buckley Space Force Base, Raytheon, and a cluster of aerospace primes and subs operate within 20 miles. That creates durable, contract-driven revenue for precision machine shops in the area.

As of Q1 2026, there are roughly 34 machine shop listings active nationally, with Colorado representing a disproportionate share of aerospace-adjacent opportunities relative to market size. Aurora specifically benefits from proximity to both DIA's cargo infrastructure and the Lowry/Stapleton industrial redevelopment corridors.

The median household income in Aurora is $84,320, which supports a skilled machinist labor pool. That matters because workforce retention is one of the top post-acquisition risk factors in this industry.

How Much Does a Machine Shop Cost in Aurora?

The price range is wide: $69,999 on the low end (likely an asset sale with minimal goodwill) up to $8.9M for fully equipped, multi-shift operations with long-term contracts. Most serious acquisition targets sit in the $500K to $2.5M range where SBA financing is cleanly applicable.

The 3.7x average multiple is fair for a capital-intensive business with real equipment value. Unlike service businesses, machine shops carry tangible assets (CNC equipment, lathes, mills) that partially collateralize the deal. That helps with lender comfort.

Here is what a representative deal at the median looks like:

These are rough estimates based on market data. Actual terms depend on individual qualification and lender.

A 2.2x DSCR at this price point is solid. That is well above the 1.5x floor and close to the 2x target Regalis Capital uses as a benchmark across acquisitions.

Can You Get SBA Financing for a Machine Shop in Colorado?

SBA 7(a) is the standard financing vehicle for acquisitions like this. The default structure is 80% SBA loan, 15% seller note on full standby, and 5% buyer cash as the equity injection. The seller note acts as equity in the deal, meaning no payments on it during the SBA loan term. Regalis Capital achieves full standby seller notes on more than 90% of its deals.

For a $995,000 machine shop, that means roughly $50,000 in cash out of pocket for the buyer. The SBA loan runs a 10-year term at approximately 10% to 11% based on current rates (WSJ Prime plus 1.5% to 2.75%). That is the math that produces the $130,000 annual debt service estimate above.

Machine shops with real equipment value tend to perform well with SBA lenders because the collateral story is stronger than a pure service business. Equipment appraisals typically run at 70% to 80% of book value for well-maintained CNC machinery.

What Should You Look For When Buying a Machine Shop?

Customer concentration is the single biggest risk. A shop doing $1M in revenue where one customer represents 40% of billings is a fragile business regardless of how clean the financials look. Target shops where no single customer exceeds 20% of revenue.

Job logs and work orders are your revenue verification tool. Unlike retail or food service, machine shops generate detailed paper trails per job. Request 24 months of job logs and cross-reference them against tax returns. Discrepancies surface fast.

Equipment condition and age matter more here than in almost any other SMB category. A shop running 15-year-old Haas machines without recent maintenance records is buying near-term capex exposure. Get an independent equipment appraisal before signing an LOI.

Backlog is value. A shop with 90 days of contracted work in hand at closing is worth more than one relying on spot orders. Ask for current backlog documentation as part of initial diligence.

Labor: specifically, whether key machinists have employment agreements or are at-will. Skilled CNC operators are hard to replace in a tight labor market. Aurora's proximity to Arapahoe Community College's machining program helps somewhat, but plan for 60 to 90 days to onboard a replacement machinist if a key person walks.

Frequently Asked Questions

How much does it cost to buy a machine shop in Aurora, Colorado?

As of Q1 2026, the national median asking price for a machine shop is $995,000 with median cash flow around $287,000. Aerospace-adjacent shops in Aurora and the broader Denver metro can price at the higher end of that range given contract backlog and proximity to defense contractors. Listings range from under $100,000 for asset sales to over $8M for fully equipped multi-shift operations.

What is a reasonable multiple for a machine shop acquisition?

The national average multiple is 3.7x cash flow, which is fair for a capital-intensive business. Regalis Capital's deal team targets acquisitions in the 3x to 5x range for SBA eligibility. Shops with long-term aerospace or defense contracts, modern equipment, and low customer concentration can justify multiples toward the upper end of that range.

Can I buy a machine shop with SBA financing in Colorado?

Yes. SBA 7(a) loans are well-suited for machine shop acquisitions because the equipment provides meaningful collateral. The standard structure is 80% SBA loan, 15% seller note on full standby, and 5% buyer cash equity injection. On a $995,000 acquisition, that is approximately $50,000 cash out of pocket for a qualified buyer.

What financial records should I request when buying a machine shop?

Request three years of tax returns, two years of monthly job logs and work orders, a current equipment list with maintenance records, accounts receivable aging, and any existing customer contracts. Cross-reference job log revenue against tax return gross receipts to verify consistency. Large discrepancies are a red flag.

How long does it take to close a machine shop acquisition?

From signed LOI to closing typically runs 60 to 120 days for an SBA-financed deal. The main variables are lender processing time, equipment appraisal turnaround, and seller responsiveness on document requests. Deals with clean books and a cooperative seller close closer to 75 days. Complex deals with equipment issues or customer concentration concerns run longer.

Talk to Regalis Capital About Buying a Machine Shop in Aurora

If you are evaluating a machine shop in the Aurora or Denver metro area, Regalis Capital's deal team can help you run the numbers, structure the offer, and manage the SBA financing process from LOI to closing.

We review 120 to 150 deals per week across the country and have specific experience with industrial acquisitions in aerospace-adjacent markets.

Start with a free deal assessment.