Inzo Technologies — When you acquire a business, you inherit its accumulated IT and cybersecurity problems too. Inzo helps acquisition entrepreneurs evaluate technology risk during due diligence and manage cybersecurity, IT, and voice after closing, including a complimentary IT risk audit of your target company. Learn more at https://www.inzotechnologies.com/eta

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In this episode the hosts talk about a $4.8 million aerospace CNC machining business in California generating nearly $1.1 million in annualized cash flow, with incredible 60%+ margins but serious questions about customer concentration, certification transfers, owner dependence, and the true cost of growth.

Business Listing – https://www.bizbuysell.com/business-opportunity/nadcap-and-as9100d-aerospace-cnc-manufacturer-1-08m-annualized-sde/2549590/

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Would you pay $4.8 million for a CNC machining business generating $1.08 million in annualized seller's discretionary earnings? In this episode of Acquisitions Anonymous, Bill D'Alessandro, Heather Endresen, Mills Snell, and special guest Jordan from Acquisition Lab analyze an aerospace and defense precision manufacturing company in Orange County, California. With approximately $1.74 million in projected annual revenue, margins exceeding 60%, 24 CNC machines, and nearly $1 million in equipment value, this business looks like an acquisition entrepreneur's dream. Its NADCAP accreditation, AS9100D and ISO 9001 certifications, and relationships with aerospace and defense customers create substantial barriers to entry.

Key Highlights:
- $4.8M asking price, $1.08M annualized SDE: Approximately $1.74 million in projected revenue and margins above 60%, based on preliminary 2026 performance rather than completed full-year results.
- Aerospace certifications create a powerful moat: NADCAP, AS9100D, and ISO 9001 credentials enable specialized aerospace and defense manufacturing, but certification continuity and customer approvals must be verified before closing.
- Customer concentration and owner dependence: A reported 20-year customer relationship raises questions about revenue concentration, while the active owner's technical responsibilities could require a replacement costing $200K–$300K annually.
- SBA financing and tax structuring challenges: A lease expiring in 2029, a potentially necessary stock purchase, and nearly $1 million in equipment value create important financing, depreciation, and transaction-structuring considerations.
- 34% more production capacity—or a costly expansion? A proposed second shift could unlock additional revenue, but hiring machinists, maintaining quality control, and funding future equipment purchases may significantly change the economics.

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