Buy a Machine Shop in San Antonio, TX
The San Antonio Machine Shop Market
San Antonio's industrial base is larger than most buyers expect. The city sits at the intersection of active defense contracting, oil and gas supply chain work, and a growing manufacturing sector that feeds into both military and commercial accounts.
Lackland Air Force Base, Joint Base San Antonio, and the Port San Antonio aerospace complex create a durable floor of demand for precision machining. Shops that have established DoD subcontract relationships often carry backlog that is visible 6 to 12 months forward.
That kind of revenue visibility is exactly what SBA lenders want to see.
There are currently 6 active machine shop listings in Texas with asking prices ranging from $69,999 to $6,500,000. The median sits at $1,090,000 with median cash flow of $303,513. At the 3.5x median multiple, these are reasonable entry points for SBA financing.
Deal Economics
A machine shop at the median asking price of $1,090,000 with $303,513 in annual cash flow produces a 3.5x multiple. Here is how the SBA structure looks on that deal.
According to Regalis Capital's deal team, a $1,090,000 machine shop acquisition in San Antonio typically structures as follows: approximately $763,000 in SBA 7(a) financing, a $218,000 seller note on full standby at 0% interest, and $54,500 in buyer equity (5% cash plus 5% seller note acting as equity). At current rates near 10.5%, annual debt service runs roughly $99,000, producing a DSCR just above 3x on $303,513 in cash flow.
That is a clean deal on paper. A 3x DSCR clears our 2x target with room to absorb one lost customer or a slow quarter.
The full standby seller note is non-negotiable for us. It means zero payments on the seller note during the 10-year SBA loan term. Regalis Capital achieves this structure on over 90% of deals. It dramatically reduces the buyer's year-one cash burden.
These are rough estimates based on market data. Actual terms depend on individual qualification and lender.
What SBA Lenders Look for in Machine Shop Deals
Machine shops are not universally lender-friendly. The equipment-heavy balance sheet is actually a positive for SBA underwriting because collateral coverage is often strong. But lenders are scrutinizing several specific things.
Customer concentration is the primary underwriting concern. A shop doing $1M in revenue with 60% from one customer is a riskier bet than a shop with 10 customers at 15% each. If the top customer represents more than 30% of revenue, expect the lender to probe hard.
Revenue documentation matters more in manufacturing than almost any other category. Job costing records, invoices, and QuickBooks or equivalent financials going back 3 years are baseline requirements. Shops that have been running on cash or informal records will struggle to qualify.
Equipment condition and age affect both collateral value and post-close capital requirements. A shop full of 30-year-old manual lathes is a different business than one with CNC machining centers under 10 years old. Buyers should budget for an independent equipment appraisal as part of due diligence.
Owner involvement is a factor. If the seller is the only machinist and holds all the customer relationships, lenders will want either a long transition period or key-person protections built into the deal.
Local Considerations for San Antonio Buyers
San Antonio's labor market for machinists is tighter than the national average. The city has a large vocational training pipeline through St. Philip's College and Alamo Colleges, but experienced CNC operators are in demand and compensation expectations have moved up.
A shop with a trained, tenured workforce is worth paying for. Factor labor retention risk into your LOI terms, including transition incentives tied to close.
Texas has no state income tax, which improves after-tax cash flow for the buyer-operator. The business personal property tax applies to equipment, so get clarity on the assessed value of the shop's machinery before close. In Bexar County, this tax is a real line item.
Based on Regalis Capital's analysis of recent acquisitions, machine shops in Texas average a 3.5x cash flow multiple at asking. Buyers using SBA 7(a) financing need a 10% equity injection, structured as 5% cash and a 5% seller note on full standby. On a $1,090,000 deal, that means roughly $54,500 out of pocket at close.
Defense-adjacent shops should also be checked for ITAR or EAR compliance requirements. If the shop handles controlled technical data or manufactures parts that fall under export control regulations, the buyer needs to assess compliance history and budget for ongoing program management.
Frequently Asked Questions
How much does it cost to buy a machine shop in San Antonio?
Current listings in Texas show a median asking price of $1,090,000 for machine shops, with the range running from under $100,000 to above $6,000,000. Most SBA-financeable deals fall between $500,000 and $3,000,000. Price depends heavily on equipment condition, customer concentration, and whether the shop holds active defense or commercial contracts.
Can I use SBA financing to buy a machine shop in Texas?
Yes. Machine shops are SBA-eligible businesses and tend to underwrite well due to equipment collateral. The SBA 7(a) program covers up to 90% of the acquisition price on a 10-year term. Buyers need a 10% equity injection, typically structured as 5% cash plus a 5% seller note on full standby acting as equity.
What is a good DSCR for a machine shop acquisition?
Regalis Capital targets a 2x DSCR as the baseline and will not pursue deals below 1.5x even with synergies. A $1,090,000 machine shop at current SBA rates producing $303,513 in cash flow clears approximately 3x DSCR, which is a comfortable margin for most lenders.
What financial records should I request when buying a machine shop?
Request 3 years of tax returns, 3 years of profit and loss statements, accounts receivable aging, customer concentration reports, and job costing records. Equipment appraisals and maintenance logs are also essential. Shops with informal bookkeeping or missing records represent a financing risk, not just a due diligence risk.
How long does it take to close a machine shop acquisition using SBA financing?
Most SBA-financed acquisitions close in 60 to 90 days from signed LOI, assuming clean financials and no title or environmental issues. Machine shops with complex equipment inventories or government contracts may take longer due to additional lender due diligence or contract assignment requirements.
Talk to Regalis Capital About Buying a Machine Shop in San Antonio
If you are evaluating a machine shop in San Antonio or broader Texas, our deal team can help you run the numbers, stress-test the customer concentration, and structure an offer that gets through SBA underwriting.
We review 120 to 150 deals per week and have completed over $200M in transactions. Most of our machine shop deals close with a full standby seller note and a DSCR above 2x.
Start with a free deal assessment at Regalis Capital.
Frequently Asked Questions
How much does it cost to buy a machine shop in San Antonio?
Current listings in Texas show a median asking price of $1,090,000 for machine shops, with the range running from under $100,000 to above $6,000,000. Most SBA-financeable deals fall between $500,000 and $3,000,000. Price depends heavily on equipment condition, customer concentration, and whether the shop holds active defense or commercial contracts.
Can I use SBA financing to buy a machine shop in Texas?
Yes. Machine shops are SBA-eligible businesses and tend to underwrite well due to equipment collateral. The SBA 7(a) program covers up to 90% of the acquisition price on a 10-year term. Buyers need a 10% equity injection, typically structured as 5% cash plus a 5% seller note on full standby acting as equity.
What is a good DSCR for a machine shop acquisition?
Regalis Capital targets a 2x DSCR as the baseline and will not pursue deals below 1.5x even with synergies. A $1,090,000 machine shop at current SBA rates producing $303,513 in cash flow clears approximately 3x DSCR, which is a comfortable margin for most lenders.
What financial records should I request when buying a machine shop?
Request 3 years of tax returns, 3 years of profit and loss statements, accounts receivable aging, customer concentration reports, and job costing records. Equipment appraisals and maintenance logs are also essential. Shops with informal bookkeeping or missing records represent a financing risk, not just a due diligence risk.
How long does it take to close a machine shop acquisition using SBA financing?
Most SBA-financed acquisitions close in 60 to 90 days from signed LOI, assuming clean financials and no title or environmental issues. Machine shops with complex equipment inventories or government contracts may take longer due to additional lender due diligence or contract assignment requirements.
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 in San Antonio? Regalis Capital's deal team can run the numbers and structure an offer built for SBA approval.
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