A machine shop can contain valuable equipment and still be a poor operating acquisition. Verify the work, people, systems, assets, obligations and facility as separate layers.
CommercialCustomers, backlog, pricing, concentration and contracts
AssetsOwnership, condition, utilization, liens and transfer
OperationsPeople, quality, programs, maintenance and suppliers
FacilityLease, utilities, environmental, access and continuity
Reconcile the asset schedule
Match machines, serials, controls, options, tooling, inspection equipment, vehicles, software and inventory to ownership, lease, lien and financial records. Identify customer-owned property and excluded assets.
Test revenue quality
Separate recurring production from one-time work, concentration from diversity and quoted backlog from released orders. Understand customer approvals, transferable agreements, price history, material exposure and the people who maintain each relationship.
Review the operating system
Quality registrations, customer approvals, corrective actions, calibration, maintenance, cybersecurity, programming, estimating and scheduling determine whether the equipment can keep producing after the transaction.
Build the transition
Key employees, facility lease, utilities, permits, software licenses, supplier accounts, customer notifications and owner knowledge may not transfer automatically. Assign each dependency a responsible person, condition and date.
Machine Blue Book is an independent information and research service. It does not replace a qualified attorney, accountant, appraiser, engineer, inspector, broker, auctioneer, lender, carrier, rigger, manufacturer or other responsible professional for the actual transaction.
