Tier-1 Aerospace Components Inc.

The clearest measure of the company is a moment it was trusted with work it had never run. When a Tier-1 airframer^Attested lost its incumbent supplier to a failed first-article inspection on a flight-critical titanium bracket^Attested, it had weeks, not months, to recover the schedule. The company took the print, re-engineered the workholding, and delivered a qualified first article to ±0.0002 in^Attested inside under six weeks^Attested. That part has shipped on the company's narrow-body structures^Attested work ever since, and the relationship it earned is now among the company's largest. A buyer can ask the customer directly; the seller will make the introduction.

The company is a precision aerospace machining business in Cambridge, Ontario, holding AS9100D^Attested and NADCAP accredited^Attested behind flight-critical customer programs. Revenue for the most recent fiscal year was $4.15M^S, with gross profit of $1.74M^V and adjusted EBITDA of $1.28M^V. The investment case is a qualified, certified supplier on long-cycle programs, earnings a buyer can reconcile line by line, and a founder committed to the transition. It is offered cash-free and debt-free.

The thesis is simple and testable: a certified aerospace supplier on programs that requalify slowly, holding margins that have stayed steady for three years, priced against earnings that reconcile to the statements. Each section that follows advances one part of that thesis and backs it with a document or an attestation. The growth section closes with where the next dollar of EBITDA comes from.

The company machines tight-tolerance components to customer prints from a single 42,000 sq ft facility^Attested in Cambridge, Ontario. It was founded in 1978^Attested and has operated under continuous ownership since. Its work is concentrated in flight-critical aerospace and defense structures, where a supplier's certifications and process history are the barrier to entry, not price.

The business is held through a holding company, with the operating company offered for sale and the facility owned by a related real-estate entity and leased to the operating company at market. The structure is clean, and the transaction perimeter is the operating company.

The company produces machined structural and precision components for aerospace and defense customers, working to customer prints on multi-axis CNC equipment. It holds the quality and special-process approvals its regulated programs require, listed below, and is ITAR registered^Attested for controlled work.

The company serves the aerospace and defense precision-machining segment, where demand follows build rates on the airframe programs its parts fly on. No independent market-share study is on file, so the company makes no claim to segment rank; a buyer should size the position in diligence. What is verifiable is the qualification barrier: a new supplier on these programs faces a multi-year approval path.

Revenue is prepared from the customer revenue detail on file. The single most concentrated customer represents 16.4%^S of revenue and the three most concentrated represent 43.1%^S. These customers are sticky for a structural reason: each part flies on a flight-critical program, and moving the work would force the customer through a multi-year requalification of a new supplier. That switching cost sits with the program and its certifications, not with any individual, so it holds regardless of who owns the relationship and survives a change of ownership. The decline in concentration over the last three years, as qualified programs were added and shown below, is secondary support; the qualification barrier is the durable protection.

Production runs on a fleet of 18 CNC machining centers^{On file}, including 6 five-axis machining centers^{On file} for complex geometry, held to ±0.0002 in^Attested and verified on dedicated CMM inspection. The equipment register is on file and summarized in the appendix. Depreciation of production and office equipment was $275K^S in the most recent fiscal year.

The company is led by its founder, supported by a senior team whose tenures are measured in decades. The organization and the key roles are shown below. Owners' reported salaries were $209K^S in the most recent fiscal year, normalized to market in the earnings recast. The depth of the team is what lets the founder step back through transition.

The reviewed statement of income for the three most recent fiscal years is below. Revenue is cited to the statements; gross profit and pre-tax income are engine-reconciled each year, so the trend is not just told but checked.

Reported income before income taxes of $901K^V is recast to adjusted EBITDA of $1.28M^V through the normalization memo. The add-backs are itemized below, each drawn from the memo: interest, depreciation and amortization, an owner-compensation-to-market adjustment, and non-recurring items. The bridge reconciles.

The balance sheet as at the most recent fiscal year end is below, cited to the reviewed statements. The working-capital and debt lines a buyer will underwrite are broken out. Total assets equal total liabilities plus equity, as they must.

The founder intends to remain through a 12-month minimum^Attested transition and to roll equity forward alongside the buyer. The real key-person asset is not a set of personal customer relationships but the operational core: the estimating and quoting method and the system knowledge that price and win the work. The stay is built to transfer that core to the team and to make direct introductions to the customers, so the value does not walk out with the owner. This is the seller's stated intention and a term to confirm in the agreement, not a number that moves the price. The transition transfers the quoting and process knowledge and the customer introductions; a buyer should confirm the depth of that transfer in diligence, and that item prints as open.

References are available to a serious buyer, including the program manager at the customer in the proof story and the company's outside quality auditor. One marquee customer has agreed to speak under NDA. These are offered rather than implied, and the seller will make the introductions.

The opportunity is capacity the company is already qualified to fill. Existing programs have headroom the current shift pattern does not capture, and two customers have signaled additional work pending approvals the company already holds. The nearest-term lever is a second shift on the 6 five-axis machining centers^{On file} cells, where demand is qualified and the constraint is labor, not certification. Contracted backlog carried into the next fiscal year is unbound: contracted_backlog@FY2025.

The company is offered cash-free and debt-free, with the operating company as the perimeter and the facility available under a market lease. The diligence posture is disclosed in the seller's package; open items print as open rather than being deferred to the data room.

The equipment register and a short glossary follow. Every figure in this memorandum resolves to a source document or a recorded transformation; every specific fact is marked on file or attested.

Glossary. Adjusted EBITDA: earnings before interest, taxes, depreciation and amortization, with owner compensation normalized to market and non-recurring items removed. First article: the initial qualified production part a customer inspects before releasing a supplier for a program. AS9100: the aerospace quality-management standard. NADCAP: the industry accreditation for special processes. Verified: a deterministic engine reconciled the figure. Sourced: a person cited the figure to a page. On file: a document backs the fact. Attested: the seller states the fact in their own words.