Considering retirement or stepping away from your Aerospace Business?
Ready to Sell Your Aerospace or Defense Business
From Startup to Success, Now What?
You Built a High-Precision Business. Let’s Build Your Exit Strategy.
Few industries demand the level of precision, compliance, and technical certification that aerospace and defense do. You’ve navigated rigorous quality standards, long production cycles, and complex customer requirements, often with program timelines measured in years, not months.
That depth of specialization translates into real value, but it also means the sale process is unlike other sectors. You need advisors who speak your language, understand regulatory nuances, and know what serious buyers look for.
At Lion Business Advisors, we help founders of aerospace manufacturing, MRO (Maintenance, Repair & Overhaul), engineering services, avionics, and defense supply chain firms exit with clarity, confidence, and a strategy that reflects the complexity of their business.
Call us Today: 800.525.3542
Recently Sold Aerospace / Defense Firms
Founded over two decades ago, this aerospace precision machining company specialized in tight-tolerance components for both commercial aviation and defense applications. The business held multiple long-standing OEM relationships and maintained AS9100 certification, with additional special process approvals supporting recurring production work.
Gross Revenues: $33,650,000
✅ Revenue was well diversified across several aircraft programs, limiting platform risk. The owner received multiple qualified offers and ultimately selected a strategic buyer that committed to retaining the existing management team and shop floor workforce.
This established aerospace maintenance, repair, and overhaul business supported a mix of commercial and defense customers with recurring service agreements. Strong margins were driven by repeat maintenance cycles and long-term customer relationships.
Gross Revenues: $16,250,000
✅ The seller completed a successful transition to a strategic acquirer seeking to expand its regional service footprint.
Operating as a Tier-2 supplier, this aerospace subcontractor produced specialized components for defense programs with multi-year contract visibility. The company maintained strict ITAR compliance and had built a reputation for on-time delivery and consistent quality.
Gross Revenues: $21, 300,000
✅ Buyer interest was driven by backlog strength, disciplined financial reporting, and low customer concentration relative to peers. The transaction was structured to support continuity of government contracts and operational stability post-closing.
This niche aerospace manufacturer focused on low-volume, high-complexity components requiring advanced quality systems and experienced technical oversight. Strong internal processes and consistent gross margins supported buyer confidence throughout diligence.
Gross Revenues: $17,250,000
✅ The seller ultimately completed a transaction that preserved the company’s operating autonomy while providing growth capital for future expansion.
What Defines the Aerospace Sector
The aerospace ecosystem is broad and technically demanding. Typical businesses we represent include:
Aerospace component and assembly manufacturers
Precision machine shops and tooling specialists
MRO and support services for commercial and defense applications
Engineering and systems integration firms
Avionics and specialized electronics producers
Niche supply chain companies serving Tier 1/2 OEMs or defense contractors
Many of these firms operate under strict regulatory and certification regimes, from AS9100 quality systems to Nadcap special process accreditation — the latter often seen as a differentiator in valuation because it signifies compliance with specialized aerospace process standards.
What Buyers Look For, Aerospace Specific
Technical buyers evaluate aerospace businesses with a different lens than general industry acquirers. Key value signals include:
Program Lifecycle Exposure — revenue tied to current and future production programs (e.g., jet platforms, defense systems) is more attractive than reliance on legacy equipment.
Certifications & Accreditations — AS9100 might get the door open, but Nadcap or ITAR compliance often accelerates buyer confidence.
Contractual Stability — firm Multi-Year Agreements, repair station approvals, and long-term service contracts reduce perceived risk.
Transferable Technical Capability — engineering depth and documented processes mean less transition risk for acquirers.
Buyers also pay attention to customer concentration, a common tension for aerospace owners, especially when a large portion of revenue is tied to a few key OEM or government contracts.
Aerospace Business Valuation
Unlike some industries where standard multiples dominate, aerospace and defense valuations are shaped by technical complexity and predictability of future earnings.
Some broad valuation observations:
EBITDA multiples in aerospace & defense tend to be higher than general industrial peers because of long-term contracts and technical barriers to entry. Public markets show TEV/EBITDA ratios around double digits, reflecting confidence in backlog and future demand.
Program Exposure: A company with diversified exposure to multiple aerospace programs (especially growth segments) often earns a premium over one tied to a single platform that may sunset.
Backlog and Recurring Revenue: Predictability from service and MRO contracts often increases valuation compared to one-off manufacturing jobs.
Ultimately, valuation is nuanced — and balancing proprietary technical expertise with financial clarity often attracts competing offers.
Call us Today: 800.525.3542
Why Aerospace Owners Sell
Most founders don’t wake up wanting to sell — they sell because:
They’ve built decades of value and want to monetize equity before retirement
They recognize strategic interest from larger OEMs or consolidators
They lack an internal successor with depth in engineering and operations
They want to mitigate risk tied to long-cycle program exposure
They aim to preserve their legacy and protect employees
Selling an aerospace business is as much strategic as it is transactional — and early planning pays dividends.
How Lion Business Advisors Guides Your Exit
We don’t take a one-size-fits-all approach. Aerospace exits can involve unique legal, regulatory, and operational hurdles, for example, government contract novation (the legal transfer of defense contracts requiring agency approval). Our process accounts for that complexity, so deals are structured for certainty.
Here’s how we help:
Confidential Aerospace Business Valuation
We assess technical credentials, backlog, program exposure, and financial performance to establish a defensible value range.Targeted Buyer Outreach
We reach out to strategic OEM partners, specialized consolidators, and financial sponsors active in aerospace and defense deals.Diligence & Contract Support
We guide you through technical due diligence, regulatory compliance handoffs, and contract novation preparation.Negotiation & Deal Structuring
We help align earnouts, retention incentives, and transition planning to protect your value and legacy.Transition & Continuity Planning
We work with you to ensure knowledge transfer, key talent retention, and post-deal performance continuity.
This aerospace-specific process gives sellers confidence in both the value and durability of the transaction.
Frequently Asked Questions About Selling an Aerospace Business
How are aerospace machine shops valued?
Valuations typically range from middle-market EBITDA multiples, influenced by program diversity, backlog strength, and strategic relevance. Technical credentials like Nadcap accreditation and multi-year service agreements often drive premium pricing.
What is contract novation in an aerospace business sale?
Novation is the government’s legal process for transferring contracts — especially defense or agency work — to a buyer. It demonstrates the buyer’s ability to perform and requires approval from the contracting authority.
Can ITAR-controlled products be sold to foreign buyers?
Foreign buyers are restricted in acquiring ITAR-controlled businesses due to export control laws and Committee on Foreign Investment in the U.S. (CFIUS) considerations, adding complexity and time to such deals.
Why do aerospace firm owners consider selling now?
Owners often sell to capitalize on high valuations, strategic interest from consolidators, succession planning gaps, or shifts in program life cycles.
How long does it take to sell an aerospace company?
Expect a multi-phase process that can take 9–18 months or more, including diligence, regulatory reviews, contract novation, and closing.
