Buy a Machine Shop in Jacksonville, FL
The Jacksonville Machine Shop Market
Jacksonville is not a typical Florida market. While most of the state runs on tourism and retail, Jacksonville's economy is built around the Navy, logistics, and light manufacturing.
Naval Station Mayport, NAS Jacksonville, and the sprawling Jacksonville port complex all feed demand for precision machined parts, custom fabrication, and equipment maintenance. That means machine shops here have real, recurring customers, not seasonal ones.
The metro's population is approaching one million, and its industrial corridor along I-10 and the Northside has seen steady growth in distribution and light manufacturing tenants. Those businesses all need machining support at some point.
From what we have seen nationally, machine shops in markets with defense or logistics anchors tend to carry stronger customer concentration in commercial and government contracts, which makes revenue more predictable and lenders more comfortable.
Deal Economics
The national median asking price for a machine shop sits at $995,000, with median cash flow of $286,757. That implies a 3.7x multiple, which is inside the SBA sweet spot of 3x to 5x EBITDA.
The price range runs wide: $69,999 on the low end to $8.9M at the top. The low end typically reflects shops with aging equipment, a single key-person operator, or thin margins. The high end reflects shops with CNC equipment fleets, documented contracts, and real management infrastructure.
A useful target zone for most SBA buyers: $500K to $2M asking price with $150K or more in verifiable cash flow.
According to Regalis Capital's deal team, machine shops in the $500K to $2M range are the most actionable for SBA buyers. At a $995,000 asking price with $286,757 in cash flow, you are looking at a 3.7x multiple. SBA 7(a) financing at that price requires roughly $99,500 in equity injection, structured as $49,750 in buyer cash plus a $49,750 seller note on full standby.
A note on cash flow figures: most machine shop listings report SDE (Seller Discretionary Earnings), which is inflated relative to what a new owner-operator will actually earn. Discount SDE by 15% to 30% before running your DSCR math, especially if the current owner is the primary machinist.
Financing a Jacksonville Machine Shop
SBA 7(a) is the standard financing vehicle for machine shop acquisitions in this price range. Here is how the math looks on a $995,000 deal:
- Asking price: $995,000
- SBA loan (80%): $796,000
- Seller note (15%, full standby at 0%): $149,250
- Buyer cash (5%): $49,750
- Total equity injection (10%): $99,500
- Approximate annual debt service (10-year term, ~10.5% rate): roughly $127,000
- DSCR at $286,757 cash flow: approximately 2.3x
That 2.3x DSCR is comfortably above our 2x target. Even with a 20% haircut on cash flow to account for SDE inflation, you land around 1.8x, which is still above our 1.5x floor.
These are rough estimates based on market data. Actual terms depend on individual qualification and lender.
The seller note on full standby is not a given. It is something we negotiate on most deals, and we achieve it on over 90% of Regalis transactions. Full standby means zero payments on the seller note during the SBA loan term, which protects your DSCR in the early years.
Regalis Capital's acquisition data shows that SBA 7(a) is the most common financing structure for machine shop acquisitions under $5M. The 10% equity injection requirement is typically structured as 5% buyer cash and 5% seller note on full standby at 0% interest. On a $995,000 deal, that is $49,750 in actual cash out of pocket.
What to Look For (and What to Avoid)
Machine shops have real due diligence complexity. A few things to prioritize:
Customer concentration. If one customer represents more than 30% of revenue, that is a risk flag. Defense contractors are better than a single commercial client because they come with long-term purchase orders, but they still need diversification.
Equipment condition and age. CNC mills and lathes depreciate over 7 to 10 years. An aging equipment fleet means near-term capital expenditure that needs to factor into your post-close cash flow. Request maintenance logs and ask for an independent equipment appraisal.
Key-person dependency. If the owner is also the head machinist, the business has a succession problem built into it. Look for shops with at least one foreman or lead operator who plans to stay post-close.
Revenue documentation. Machine shops bill by job. Ask for QuickBooks job reports, customer invoices, and accounts receivable aging. Sales tax returns are your best cross-check against stated revenue.
Permits and certifications. AS9100 (aerospace quality), ITAR compliance, or ISO 9001 certifications dramatically expand a shop's addressable market. These take 12 to 24 months to obtain and are worth paying a premium for.
Frequently Asked Questions
How much does it cost to buy a machine shop in Jacksonville?
National median asking price for a machine shop is $995,000, with deals ranging from roughly $70,000 to $8.9M depending on size, equipment, and customer base. Jacksonville-specific pricing tracks close to national averages given the market's industrial activity. Most SBA-financeable deals in the Jacksonville area fall between $500K and $2.5M.
Can I use SBA financing to buy a machine shop in Florida?
Yes. Machine shops are eligible for SBA 7(a) acquisition financing. The standard structure requires a 10% equity injection, typically split as 5% buyer cash and 5% seller note on full standby at 0% interest. Florida has no state income tax, which slightly improves post-close cash flow relative to higher-tax states.
What is a good cash flow multiple for a machine shop acquisition?
The national average for machine shop acquisitions is approximately 3.7x cash flow. Regalis Capital's deal team targets 3x to 5x EBITDA as the SBA sweet spot. Below 3x is a strong deal. Above 5x requires a more conservative structure, including a larger seller note or partial earnout.
What should I check in a machine shop's financial records?
Prioritize job-level revenue reports, customer invoices, accounts receivable aging, and sales tax returns. Cross-reference these against bank deposits. If the shop files taxes as a pass-through, request at least three years of Schedule C or K-1 data. Equipment maintenance logs are also material given the capital-intensive nature of the business.
How long does it take to close a machine shop acquisition with SBA financing?
Most SBA 7(a) closings take 60 to 90 days from executed letter of intent to close, assuming clean financials and no title complications on equipment. Deals with real estate included can add 30 or more days. Having an experienced deal team in place from the start of the LOI process is the single biggest factor in keeping timelines on track.
Thinking About Buying a Machine Shop in Jacksonville?
Regalis Capital's deal team reviews 120 to 150 deals per week and focuses exclusively on buy-side advisory. If you are evaluating a machine shop acquisition in Jacksonville or anywhere in Florida, we can help you assess the deal, structure the financing, and negotiate a seller note that protects your DSCR.
Start with a free deal assessment at regaliscapital.com.
Frequently Asked Questions
How much does it cost to buy a machine shop in Jacksonville?
National median asking price for a machine shop is $995,000, with deals ranging from roughly $70,000 to $8.9M depending on size, equipment, and customer base. Jacksonville-specific pricing tracks close to national averages given the market's industrial activity. Most SBA-financeable deals in the Jacksonville area fall between $500K and $2.5M.
Can I use SBA financing to buy a machine shop in Florida?
Yes. Machine shops are eligible for SBA 7(a) acquisition financing. The standard structure requires a 10% equity injection, typically split as 5% buyer cash and 5% seller note on full standby at 0% interest. Florida has no state income tax, which slightly improves post-close cash flow relative to higher-tax states.
What is a good cash flow multiple for a machine shop acquisition?
The national average for machine shop acquisitions is approximately 3.7x cash flow. Regalis Capital's deal team targets 3x to 5x EBITDA as the SBA sweet spot. Below 3x is a strong deal. Above 5x requires a more conservative structure, including a larger seller note or partial earnout.
What should I check in a machine shop's financial records?
Prioritize job-level revenue reports, customer invoices, accounts receivable aging, and sales tax returns. Cross-reference these against bank deposits. If the shop files taxes as a pass-through, request at least three years of Schedule C or K-1 data. Equipment maintenance logs are also material given the capital-intensive nature of the business.
How long does it take to close a machine shop acquisition with SBA financing?
Most SBA 7(a) closings take 60 to 90 days from executed letter of intent to close, assuming clean financials and no title complications on equipment. Deals with real estate included can add 30 or more days. Having an experienced deal team in place from the start of the LOI process is the single biggest factor in keeping timelines on track.
Note: Deal economics, pricing, and cash flow figures referenced on this page are estimates based on aggregated listing data and general SBA acquisition math. Actual deal terms vary by business, market conditions, and lender requirements. This content is informational only and does not constitute financial advice.
Evaluating a machine shop acquisition in Jacksonville? Regalis Capital's deal team handles buy-side advisory from deal sourcing through close.
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