Precision Engineering and Machining Business For Sale Hampshire Area

Sovereign Business Transfer is pleased to exclusively offer for sale a well-established and highly profitable precision engineering and machining business located in Hampshire. This business provides solutions for small and medium batch runs, one-off requirements, and full production runs.

The company’s long-standing clientele includes manufacturers in various industries such as defence, automotive, motorsport, specialist yacht and shipbuilding, pharmaceuticals, oil, gas, petrochemicals, and renewables. These clients benefit from a wide range of component manufacturing services.

The business is vendor-approved for the aerospace industry and holds certification for quality assurance to the latest BS EN ISO9001:2015 standard. This certification, issued by the International Organisation for Standardisation (ISO), provides a robust framework for quality management systems (QMS). It emphasises customer satisfaction, continuous improvement, and risk management, ensuring that the company can consistently deliver high-quality products and services.

Operating from a well-equipped, purpose-built 600 square meter facility, with the potential for expansion into additional units, the company is supported by a strong second-tier management team capable of running the business independently of the Director, who will remain with the company post-completion. The shareholders are selling the business as they are nearing retirement and seeking an even better work-life balance. They are committed to ensuring a smooth transition for the new owners.

The business is currently operated at a pace that suits the owner, with projected revenue expected to exceed £650,000 this financial year. It consistently achieves a stable gross margin of approximately 58%, and an adjusted EBITDA of around £176,000 for the year ending 29 February 2024.

The vendors are seeking a guide price of £749,950 for 100% of the company’s shares, plus the fair market value for machinery. The sale will be on a debt-free, cash-free basis. The balance sheet includes surplus cash that the vendors expect to add to the consideration upon completion. The business operates from a freehold premises owned by our client, and a new FRI lease will be granted subject to landlord approval. The property may be included in the sale, subject to negotiation.

This company presents an attractive acquisition opportunity for both larger trade buyers looking to expand their range of services, client base, geographical coverage, and technical capabilities, as well as for those seeking a stable, standalone engineering business with a robust blue-chip client base and significant growth potential.

• A complete end-to-end service
• Extensive plant list in world leading technology
• An established and prestigious client base with repeat business
• Longevity in the market and strong reputation for quality of service
• A strong financial profile with net sales of over £596,000 in 2023
• Scope for growth with formal marketing efforts