Midwest Metal Fabrication Shop Sold for $1M, LOI in 73 Days
Rachel Horner
⋅
2 min read
About the Business
Industry: Manufacturing & Construction – Custom Metal Fabrication and Installation
Location: Midwest
Size: $750K–$1M in annual revenue, $300K–$450K in cash flow
Sale price: $1,000,000
Listing to signed LOI: 73 days
Signed LOI to close: 164 days
The Challenge: Growth With No Successor Inside
The owner had grown the business but had no one inside the company who wanted to own it. He wanted a buyer with the vision and capital to expand a shop where demand was outrunning capacity.
73 Days to a Signed LOI: Getting a Stock Sale on Paper
What happened at every stage
Valuation: Baton built the valuation and listing around the shop's commercial and industrial client base and its on-site installation work.
Buyer Outreach: Baton sourced 487 buyer leads at launch, added a strategic-buyer list the owner approved, and syndicated the listing to other marketplaces. 110+ buyers viewed it, 30+ opened the data room, and 6 requested introductions.
Offer Selection and Negotiation Support: The owner wanted a stock sale, so Baton added an LOI addendum listing the conditions to close and held a same-day review call. The LOI was signed 73 days after launch.
Diligence and Closing Support: Baton kept the lender, the buyer and both attorneys aligned through a quality-of-earnings review and bank underwriting. The deal closed 164 days after the LOI.
The Results
The buyer is an individual buyer with an engineering background who was searching for a business that fit his acquisition criteria. Through Baton's process, the business:
Sold for $1,000,000 in a bank-financed stock sale
Closed with $700,000 in cash at closing and a $300,000 seller note
Was viewed by 110+ buyers, with 6 introduction requests
What's next for the business?
The buyer took over planning to build a leadership team and focus on strategy and growth.
Advice and Lessons for Future Sellers
Know the deal structure you need. A stock-sale requirement can be met with an LOI addendum that spells out the conditions to close.
A seller note can help a deal get financed. A 30% seller note sat alongside the bank loan and the buyer's equity.
Be clear about the owner you want. A stated growth goal helps attract buyers who plan to build.