Make the backlog understandable
Separate firm purchase orders from quotes and hoped-for repeat work. Explain delivery dates, margin assumptions and any unusual material commitments tied to the backlog.
Show the share of sales from each major customer. A strong long relationship can still be a concentration risk when one account supplies most of the shop's profit.
Document machines and replacement needs
Build an equipment list with ownership, financing, maintenance history and identifying details. Distinguish owned machinery from leased or customer owned tooling.
Review recurring maintenance and replacement spending with your CPA. Adding back depreciation without considering the equipment needed to sustain production can overstate cash available to a buyer.
Show who keeps production running
Describe estimating, programming, purchasing and quality control roles. If only you can price complex jobs or approve finished work, plan how a buyer gains that capability.
Discuss site, lease and regulatory questions with the appropriate professionals. A deal timeline needs room for reviews of the premises as well as the financial records.
Prepare for the first valuation conversation
Start with supported earnings, the machinery schedule and a clear backlog. Describe who handles estimating and production decisions when you are away.
For your metal fabrication business, review earnings documentation, lease transfer planning and state closing tasks. Then request an introduction to discuss your particular company.