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engineering firm for Sale in Michigan

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Automotive Automation, Controls & Gas-Detection Firm - SE Michigan

MI, US

Established in 1999, this profitable, founder-led engineering and manufacturing company designs, builds, and services custom industrial controls, test and automation systems, and hazardous gas-detection safety systems for automotive OEMs, Tier-1 suppliers, national test labs, and government research programs across the Detroit automotive corridor. Three complementary revenue lines (controls and automation engineering; custom test and automation systems; and fixed hazardous gas-detection systems) are underpinned by a recurring calibration-and-maintenance base of roughly $400,000 to $500,000 per year that renews across approximately 15 accounts. The company both engineers and manufactures its equipment in-house and owns several proprietary products (emissions canister-loading and helium leak-detection systems) that have never been actively marketed, an immediate, low-cost upside for a new owner. Financial highlights: 2025 revenue of approximately $1.23M with adjusted owner earnings (SDE) of approximately $325K; 2026 is pacing to a record year of roughly $1.66M in revenue, on approximately 62% gross margin. No company debt. The business has grown for more than 27 years almost entirely on reputation and referral, with no dedicated salesperson and effectively no marketing. A buyer who adds professional sales and marketing capability inherits deep, blue-chip relationships and a strong reputation with substantial untapped demand. Owner-occupied real estate (two buildings, approximately 4,800 sq ft on roughly 2 acres) is available with the business or via lease-back. The company is SBA-financeable, and ownership is open to a transition period and limited seller financing. Financials, customer detail, and company identity are available to qualified buyers under a non-disclosure agreement.

$1,200,000Asking Price
$1,229,299Revenue
$325,000Cash Flow

Market Snapshot

National transaction benchmarks for engineering firm businesses.

Under $500K

Median revenue$405k
Median cash flow$128k
Median sale price$250k
Multiple range1.2x - 2.6x

$500K to $2M

Median revenue$1.36m
Median cash flow$467k
Median sale price$908k
Multiple range2.0x - 2.9x

Over $2M

Median revenue$4.18m
Median cash flow$1.10m
Median sale price$3.87m
Multiple range2.8x - 6.6x

A variety of factors can cause businesses to trade outside this range, including earnings quality, operational transferability, key-person risk, growth trajectory, and geography, so a listing priced above or below the typical multiple usually reflects real differences in the underlying business.

What to know about engineering firm acquisitions

GW

By George Wellmer

Cofounder & CEO

Key diligence, valuation, financing, and transition considerations for buyers evaluating engineering firm acquisitions.

Professional licensure is the right to do the work

An engineering firm can only stamp and seal drawings through its licensed professional engineers, and in many states the firm itself needs a certificate of authorization. If the owner is the sole PE, the firm's legal ability to deliver work walks out with them. Confirm which staff hold active licenses, whether the firm's authorization transfers, and how you will maintain qualified licensure after the sale.

Backlog and contracts tell you what you are really buying

The signed project backlog is the most concrete asset, far more reliable than last year's revenue. Understand the value and stage of work under contract, the mix of public versus private clients, and whether projects are fixed-fee or hourly. A firm with a deep, diversified backlog is worth more than one that has to win every dollar fresh.

Client and project concentration is the hidden fragility

Many small firms depend on a few repeat clients or a single large project for most of their revenue. If one municipal contract or one developer relationship dominates, the firm is far riskier than its income statement suggests. Get revenue by client and by project, and probe how durable the largest relationships are and whether they are tied to the departing owner.

The engineers are mobile, and so are the clients

Skilled engineers can leave and take client relationships and active projects with them. Staff retention is therefore central to preserving the value you are buying. Identify the key people, understand their compensation and how content they are, and build retention incentives and enforceable non-solicitation terms into the deal so the team and its clients stay.

Professional liability has a long tail

Engineering work carries errors-and-omissions exposure that can surface years after a project is finished. As a buyer you need to understand both current coverage and liability for past work. Confirm the professional-liability (E&O) policy is adequate and assignable, ask whether tail coverage is needed for prior projects, and address responsibility for pre-closing work in the purchase agreement.

Frequently Asked Questions

Answers to common buyer questions for this market.

Often, in effect, yes, even if not personally. The firm can only perform and seal engineering work through licensed professional engineers, and many states require the firm to hold a certificate of authorization with qualifying licensed staff. If you are not a PE yourself, you must retain or hire licensed engineers to keep the firm legally able to operate. Confirm your state's specific rules and your plan for maintaining licensure before you close.