Freyetic Group LLC acquires and operates CNC machine shops and related manufacturing businesses.
We Buy Machine Shops.
If you got a letter from us, this is the company behind it and I'm the founder.
-- Torbjorn "Toby" Bergstrom
We are not brokers.
Nobody here will list your shop, take a commission, or shop it to your competitors. We are buyers, and when we buy a shop we run it. Operate in place, keep the people employed, keep the customers served, keep the name on the building.
We are not a fund either.
Deal structures vary and an earn-out is sometimes part of one, because sometimes it is the honest way to bridge a gap on price. What we will not do is the version where you stay on for five years hitting somebody else's growth targets to earn your own money back, so the shop can be flipped to the next investor at a markup. If any of your money rides on the future, it rides on how we run the place, not on how long you keep running it for us.
Deal structures vary and an earn-out is sometimes part of one, because sometimes it is the honest way to bridge a gap on price. What we will not do is the version where you stay on for five years hitting somebody else's growth targets to earn your own money back, so the shop can be flipped to the next investor at a markup. If any of your money rides on the future, it rides on how we run the place, not on how long you keep running it for us.
We are buyers, and when we buy a shop we run it.
We operate it in place,
We keep the people employed,
We keep the customers served and,
We keep the name on the building.
We would rather grow a shop than take it apart for the pieces we want.
You have probably seen the other endings.
The shop that stays in the family, which almost never happens anymore.
The slow death, where nobody gets replaced and no machine gets bought, and it finishes as one guy in a room full of old machines making parts for two customers.
The trade buyer who takes the best machines, the best people, and the best customers and scraps the rest.
The financial buyer who pays top dollar on paper and expects you to earn most of it back for him.
And then there is the other one.
Somebody who understands the work,
buys it to run it, and
gives you a reason to be proud when you stop by in a few years.
We may not be the right buyer for your shop. The only way either of us finds out is a conversation.
What We Buy
Precision machine shops and related manufacturing businesses.
Revenue roughly $2 million to $15 million, with owner earnings above $500,000. Texas and New England first, other geographies when the business is worth the trip. Owner-operated, with an owner who cares what happens to the place after he leaves.
What We Don't Buy:
Shops with one dominant customer and no plan for it, businesses that run entirely on the owner's personal relationships with nothing documented behind them, and anything where the real plan is to close it and sell the real estate.
If you are inside that range, the call is worth fifteen minutes. If you are not, tell us anyway and we will point you at someone who fits better.
Why I Wrote A Book About This
Only about one in nine machine shops that go to market actually sell. The other eight owners spent decades building something nobody could buy, and most never found out why until it was too late to fix.
So I wrote it down. The Precision Exit is the buyer's side of the closing table. The lending math, the three kinds of buyers and what each one really pays for, and the two-year sequence that turns a shop into something a bank will finance. It ships in September through CNC Strategies Group.
The book and five free tools are at cncstrategies.us. Read them, use them, and sell to somebody else if that turns out to be the right answer. That is not a sales tactic, it is the actual position. A shop that is ready to sell is worth more to every buyer, including the ones who are not us.
Fifteen Minutes, No Pitch. One call to see whether we are a fit. You will be talking to me, not to an assistant and not to a queue. If we are not a fit you will know inside fifteen minutes, and I will not call you again unless you ask me to.
-- Torbjorn "Toby" Bergstrom
Not ready for a call yet? No problem feel free to reach out by email at toby@freyetic.com or find me on LinkedIn