Buy a Machine Shop in Seattle, WA
Seattle's Machine Shop Market
Seattle sits in the middle of one of the most industrially dense corridors on the West Coast. Aerospace, defense, maritime, and semiconductor manufacturing all run through the Pacific Northwest, and all of them depend on precision machining. Boeing's footprint alone generates an enormous downstream demand for contract machine shops doing tight-tolerance work.
That demand translates into pricing power for established shops. A shop with a couple of long-term OEM or Tier 2 aerospace contracts is worth considerably more than its cash flow alone suggests, because those contracts represent a defensible revenue stream.
The Seattle market has 34 active listings at the national level, with asking prices ranging from $69,999 to $8,900,000. Most viable SBA-eligible deals sit in the $500K to $2M range.
Deal Economics for a Seattle Machine Shop
At the median, here is what the math looks like:
- Asking price: $995,000
- Annual cash flow: $286,757
- Implied multiple: 3.5x (slightly below the national average of 3.7x)
- SBA loan (85%): $845,750
- Seller note (10%, full standby): $99,500
- Buyer cash (5%): $49,750
- Approximate annual debt service: $107,000 (10-year term, ~10.5% rate based on current rates)
- DSCR: 2.68x
That is a clean deal. At 2.68x DSCR, there is real cushion for a new owner getting up to speed, equipment maintenance, and unexpected downturns.
According to Regalis Capital's deal team, the median machine shop in Seattle asks $995,000 with $286,757 in annual cash flow. Using an 85% SBA loan and a 10% seller note on full standby, the buyer's cash requirement is roughly $49,750. Debt service coverage at these terms runs approximately 2.68x, well above the 2x target threshold.
The 10% equity injection is not a down payment in the traditional sense. It is structured as 5% buyer cash plus a 5% seller note placed on full standby, meaning no payments on the seller note during the SBA loan term. Regalis achieves full standby at 0% interest on over 90% of deals.
These are rough estimates based on market data. Actual terms depend on individual lender qualification, equipment appraisals, and business-specific risk factors.
What to Look for When Buying a Seattle Machine Shop
Equipment is the first lever. CNC mills and lathes depreciate fast and fail faster if poorly maintained. Get an independent equipment appraisal before you get anywhere near LOI. Shops running late-model Mazak, Haas, or DMG Mori equipment on current maintenance contracts are worth the premium over a shop running 20-year-old iron.
Revenue concentration is the second lever. If one customer represents more than 30% of revenue, the deal needs a longer earnout or a more conservative structure. This is especially true in aerospace, where program cancellations happen. Ask for a full customer list with trailing 3-year revenue by account.
Operator dependency is the third. Many machine shops are run by a founder who is also the best machinist on the floor. If that person walks out on day 61, can the shop still quote and fulfill orders? Key-man risk is real in this industry. Look for shops with a working foreman or shop supervisor who is not the seller.
Machine shop acquisitions in Seattle require particular attention to equipment condition, customer concentration, and operator dependency. Shops with 30% or more of revenue tied to a single aerospace or defense customer carry meaningful contract risk. An independent equipment appraisal and a trailing 3-year customer revenue breakdown are standard due diligence items before any offer.
Local Considerations for Seattle Buyers
Washington has no state income tax, which matters for an owner-operator taking distributions from an S-corp or LLC. That is a real after-tax benefit compared to buying the same business in California or Oregon.
Labor is the pressure point. Seattle's minimum wage is $19.97 per hour as of 2024, and skilled CNC operators command $28 to $45 per hour in this market. If a shop's pro forma is built on labor costs from 2019, the numbers are likely overstated. Rebuild the model from current wage rates before you underwrite.
Permitting and environmental compliance also warrant a check. Machine shops that run cutting fluids and oils need WDOE compliance documentation. A shop with unresolved environmental liabilities is a problem no SBA structure can fully offset.
Based on Regalis Capital's analysis of recent acquisitions, buyers in high-wage West Coast markets should apply a 10% to 15% labor cost adjustment when modeling cash flow on any shop with more than 10 employees. The headline SDE figures from broker listings rarely account for market-rate wages.
Frequently Asked Questions
How much does it cost to buy a machine shop in Seattle?
Machine shops in Seattle have a median asking price of $995,000, with a range from under $100K for distressed asset sales to nearly $9M for larger multi-department operations. Most SBA-eligible acquisitions fall between $500K and $2M, where financing is cleanest and lender appetite is strongest.
What cash flow can I expect from a Seattle machine shop?
Median cash flow across current listings is $286,757. That figure is typically reported as SDE by brokers, which may include the seller's salary and discretionary add-backs. A more conservative underwriting approach discounts SDE by 15% to 30% to reflect market-rate owner compensation and normalize one-time items.
Can I use an SBA loan to buy a machine shop in Seattle?
Yes. Machine shops are SBA 7(a) eligible, and the asset-heavy nature of the business (equipment as collateral) often makes lender approval more straightforward than service businesses. The standard structure is 85% SBA loan, 10% seller note on full standby, and 5% buyer cash, requiring roughly $49,750 out of pocket at the median asking price.
What due diligence matters most for a machine shop acquisition?
The three priorities are equipment condition, customer concentration, and key-man dependency. Get an independent equipment appraisal. Request a trailing 3-year customer revenue breakdown. Assess whether the shop can operate without the seller's direct involvement within 90 days of close.
How long does it take to close on a machine shop in Seattle?
SBA 7(a) acquisitions typically close in 60 to 90 days from signed LOI. Machine shops can run longer if the equipment appraisal reveals issues or if environmental compliance documentation needs to be gathered. Budget 90 days as a working assumption and build that into your timeline with the seller.
Talk to Regalis Capital About Buying a Machine Shop in Seattle
If you are looking at machine shops in Seattle and want a team that has actually structured these deals, Regalis Capital reviews 120 to 150 acquisition opportunities per week. We know what good machine shop economics look like and where most buyers leave value on the table.
Start with a free deal assessment and let us run the numbers on what you are looking at: Talk to our acquisition team
Frequently Asked Questions
How much does it cost to buy a machine shop in Seattle?
Machine shops in Seattle have a median asking price of $995,000, with a range from under $100K for distressed asset sales to nearly $9M for larger multi-department operations. Most SBA-eligible acquisitions fall between $500K and $2M, where financing is cleanest and lender appetite is strongest.
What cash flow can I expect from a Seattle machine shop?
Median cash flow across current listings is $286,757. That figure is typically reported as SDE by brokers, which may include the seller's salary and discretionary add-backs. A more conservative underwriting approach discounts SDE by 15% to 30% to reflect market-rate owner compensation and normalize one-time items.
Can I use an SBA loan to buy a machine shop in Seattle?
Yes. Machine shops are SBA 7(a) eligible, and the asset-heavy nature of the business often makes lender approval more straightforward than service businesses. The standard structure is 85% SBA loan, 10% seller note on full standby, and 5% buyer cash, requiring roughly $49,750 out of pocket at the median asking price.
What due diligence matters most for a machine shop acquisition?
The three priorities are equipment condition, customer concentration, and key-man dependency. Get an independent equipment appraisal. Request a trailing 3-year customer revenue breakdown. Assess whether the shop can operate without the seller's direct involvement within 90 days of close.
How long does it take to close on a machine shop in Seattle?
SBA 7(a) acquisitions typically close in 60 to 90 days from signed LOI. Machine shops can run longer if the equipment appraisal reveals issues or if environmental compliance documentation needs to be gathered. Budget 90 days as a working assumption and build that into your timeline with the seller.
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.
Looking to buy a machine shop in Seattle? Regalis Capital reviews 120 to 150 deals per week. Start with a free deal assessment.
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