Machine Shop Mastery

107. How to Buy a Machine Shop Well: Nik and Aaron with Mahler Machining

2026-03-11 · 10:00 UTC ·Paul Van Metre, Nik Paukkunen, Aaron Kennedy ·3 min read

Brief

Mahler Machining’s acquisition by Nik Paukkunen and Aaron Kennedy is framed as a case study in buying and scaling a small industrial business with an operator’s mindset rather than a purely financial one. After careers in finance and private equity, the two targeted precision machining as an attractive manufacturing niche and bought a Vancouver shop from retiring owners. In conversation with Paul Van Metre, they describe a disciplined transition: spend the first year absorbing the shop-floor reality, preserve trust with incumbent employees, and only then layer in systems and growth initiatives. The operational arc moved from learning and stabilization to capacity expansion, ERP rollout, sales process formalization, quality upgrades, talent development, and eventually a tuck-in acquisition. The guests also emphasize risk management through customer and end-market diversification, while arguing that culture, leadership development, and apprenticeship pipelines are as important as equipment spending. Their long-term thesis is that precision machining remains a strong sector, especially for firms capable of scaling into aerospace and defense work.

Why it matters

Nik Paukkunen and Aaron Kennedy acquired Mahler Machining in Vancouver, British Columbia after roughly a decade in corporate finance and private equity, choosing to move from advising companies to operating a precision machining business themselves.

Key details

  • Nik and Aaron said they structured the acquisition with retiring owners and then spent their entire first year on the shop floor learning operations before pushing aggressive changes, with Aaron and Nik advising future buyers to 'go slow in year one so you can move faster later.'
  • Since the acquisition, Mahler Machining has added a third shift, purchased new equipment, implemented an ERP system, built a formal sales engine around CRM and metrics, and completed a tuck-in acquisition of another small shop.
  • A major operating principle discussed by the hosts and guests was diversification: Nik and Aaron argued that spreading revenue across industries and customers reduces risk for small machine shops and creates a better base for long-term scaling.
  • Mahler Machining is investing in workforce development and higher-spec operations through partnerships with technical colleges and apprenticeship programs, quality-control upgrades, culture work centered on psychological safety and core values, and preparation for entry into aerospace and defense markets.
Source evidence

title: 107. How to Buy a Machine Shop Well: Nik and Aaron with Mahler Machining
author: Paul Van Metre, Nik Paukkunen, Aaron Kennedy
contenttype: podcast
publication: Machine Shop Mastery
published: 2026-03-11T10:00:00+00:00
sourceurl: https://cfcef04b-b7b2-498c-887b-3c776966c298.libsyn.com/107-how-to-buy-a-machine-shop-well-nik-and-aaron-with-mahler-machining

word_count: 565

Buying a machine shop from the outside can sound intimidating. For Nik and Aaron of Mahler Machining, it was also an opportunity. In this episode of Machine Shop Mastery, Paul sits down with the two partners who acquired a precision machining business in Vancouver, British Columbia after spending nearly a decade in corporate finance and private equity. Instead of continuing to advise businesses from the outside, they decided to own and operate one themselves. Their search led them to manufacturing, and ultimately to Mahler Machining, a shop they believed had the foundation to grow into something much larger. What makes this conversation especially valuable is the playbook they share for buying a machine shop the right way. From structuring the deal with the retiring owners, to spending their entire first year on the shop floor learning the business, to intentionally investing in culture, systems, and leadership, Nik and Aaron walk through how they approached the transition. Their story shows how disciplined operators from outside the industry can successfully step into manufacturing ownership while earning the trust of the team already in place. Since acquiring the business, they've implemented major operational improvements, including adding a third shift, investing in new equipment, building a formal sales engine, implementing ERP, and even completing a tuck-in acquisition of another small shop. The result has been consistent growth while laying the groundwork for entry into aerospace and defense markets. For anyone thinking about buying a machine shop, scaling one beyond the typical owner-operator ceiling, or preparing their own shop for acquisition someday, this episode provides a rare behind-the-scenes look at how thoughtful operators approach the process. You will want to hear this episode if you are interested in... (0:51) Paul introduces Nik and Aaron from Mahler Machining and explains why their acquisition story matters for the future of the industry (3:29) Growing up together, careers in corporate finance, and the decision to pursue business ownership (6:25) Why manufacturing and precision machining stood out as the right industry to enter (9:50) Structuring the acquisition and navigating the transition (12:25) Why we love SMW Autoblok for workholding (13:12) Learning the business, early operational improvements, and plans for long-term growth (19:21) Why diversification across industries and customers is critical to reduce risk (21:30) Building a disciplined sales engine using CRM, metrics, and persistence (23:58) Developing machinists through partnerships with technical colleges and apprenticeship programs (27:31) Shifting company culture toward learning, psychological safety, and clearly defined core values (31:23) Operational improvements including quality control upgrades and stronger sales efforts (34:47) Grow your top and bottom line with CliftonLarsonAllen (CLA) (35:28) Managing change and helping employees adapt to ERP implementation (38:35) Recruiting challenges and building the next generation of machinists (41:20) The unforgettable first day of ownership… (42:32) Investing ahead of growth and building a leadership team for scale (47:12) Integrating employees after acquiring another shop (48:21) Advice for future buyers: go slow in year one so you can move faster later (49:26) Why they remain bullish on the long-term future of precision machining (53:47) Join us at IMTS 2026 in Chicago! Resources & People Mentioned The Gap and the Gain SMW Autoblok Join us at IMTS 2026 in Chicago! CliftonLarsonAllen (CLA) Connect with Nik and Aaron with Mahler Machining Mahler Machine Nik Paukkunen Aaron Kennedy Connect With Machine Shop Mastery The website LinkedIn YouTube Instagram Subscribe to Machine Shop Mastery on Apple , Spotify