CNC machining shops, welding fabricators, and general engineering workshops across NSW and VIC are a staple of the Australian industrial economy — and they change hands regularly. But the multiple range is wide: 2.0× to 3.5× EBITDA covers a lot of ground, and where your business sits depends on factors that have nothing to do with how busy the workshop floor is.
What the market is paying
| Business type | Typical multiple | Key driver |
|---|---|---|
| Owner on the tools, no systems, 1–2 major customers | 1.5–2.0× EBITDA | Key-person risk + customer concentration |
| Small team, owner managing not machining, diversified work | 2.0–2.5× EBITDA | Transferability improving |
| Established shop, qualified staff, repeat B2B clients | 2.5–3.0× EBITDA | Recurring revenue, reduced owner dependency |
| Multi-machine, long-term contracts, documented processes | 3.0–3.5× EBITDA | Institutional-quality operations |
The equipment question
Buyers of engineering workshops are buying two things: the earnings stream and the equipment. The condition and age of your CNC machines, lathes, press brakes, and welding equipment directly affects the offer. A buyer who walks into a workshop with a 15-year-old machine park and no maintenance records will price in a significant capital expenditure allowance — and that comes straight off the multiple.
If you are planning to sell in the next two to three years, a documented maintenance schedule and recent service records on major equipment will pay for themselves many times over at settlement.
Customer concentration: the number buyers look at first
If your top customer represents more than 30% of revenue, expect the buyer to ask hard questions. If they represent more than 50%, expect a price reduction or an earnout structure. Buyers understand that B2B engineering work is often concentrated — but they price the risk of losing that customer after settlement.
The businesses that achieve the upper end of the multiple range are those where no single customer represents more than 20–25% of revenue, and where the work comes from a mix of industries rather than a single sector.
Is the owner on the tools?
This is the single most important question in an engineering workshop sale. If the owner is the primary machinist, the primary estimator, and the primary customer relationship — the business is not really a business. It is a job with equipment attached.
Buyers will pay for a business that runs without the owner. They will not pay a meaningful multiple for a business that stops the day the owner walks out. The transition from operator to manager is the most valuable thing an engineering workshop owner can do before going to market.
What buyers in Western Sydney and Melbourne's industrial west want
The Wetherill Park, Prestons, and Campbelltown corridor in NSW and the Dandenong, Bayswater, and Laverton North corridor in VIC are where most engineering workshop transactions happen. Buyers in these markets are typically:
- Existing operators looking to acquire capacity or a customer base
- Private equity-backed platforms consolidating the sector
- Owner-operators stepping up from a smaller operation
What they want to see: three years of clean financials, a documented customer list with revenue by client, a qualified workforce that will stay post-sale, and equipment that does not need immediate replacement.
Timing the sale
Engineering workshops are cyclical. The best time to sell is when the order book is full and margins are healthy — not when you are already tired and the business is showing the strain. Buyers pay for momentum, not potential.
