THE SPOTLIGHT | Issue 032 | November 2026

WELCOME TO WEDNESDAY’S SPOTLIGHT

Welcome back to Wednesday's Spotlight. Marco Hsu paid almost $1.4 million for Clewett Engineering, which sells engine upgrades for older Porsches. The business brings in $600,000 to $700,000 a year, and he runs it alone from his Tennessee garage.

— THE LEAD

Richard Clewett spent 30 years building a Porsche parts business in his California garage. He developed and sold engine upgrades for Porsches built in 1998 and earlier, including kits that convert older engines to electronic fuel injection. In October 2025, mechanical engineer Marco Hsu bought the business for nearly $1.4 million and moved it to his home garage in Tennessee. 

Clewett Engineering generates about $600,000 to $700,000 in annual revenue. At the time of the sale, it earned roughly $350,000 in seller's discretionary earnings (SDE), which includes the owner's compensation. That put its SDE margin at about 50%. Clewett had kept costs low by working alone seven days a week. He developed a large catalog of specialized parts, many of which sold in small quantities. Hsu estimates that half the company's custom parts sell 20 units or fewer each year.

The parts serve a small market of Porsche enthusiasts, including car restorers and racers of vintage models. For example, a crank trigger adapter kit for the Porsche 944 and 968 sells for $590 through dealer LN Engineering. It helps an aftermarket ignition system determine the engine's position.

Clewett built his customer base by helping Porsche owners with their projects. People contacted him for technical advice, which he provided for free. Many later bought his parts. He also offered remote engine tuning long before it became common. Over time, his technical knowledge and reputation brought in customers without much active selling.

Hsu had spent about 10 years working in the automotive industry. He also designed parts for his own cars but had struggled to find buyers. When he found Clewett Engineering listed on business brokerage Quiet Light, he saw an opportunity to buy a company with established products and customers.

The business was listed at 3.5 times SDE, excluding inventory, equipment, and working capital. Hsu submitted three letters of intent before securing the deal. He also sent Clewett a two-page presentation explaining his engineering background and interest in the business. Clewett told him it "sounded like me, but 30 years ago."

Hsu paid nearly $1.4 million for the business. He estimates the purchase multiple was closer to 4x SDE, including equipment, inventory, and about $70,000 in working capital. He used an SBA 7(a) loan to finance the acquisition and funded his 10% down payment with retirement savings through a rollover for business startups (ROBS). There was no seller financing. He spent another $100,000 to $150,000 on inventory during the first three to four months.

Hsu had expected to outsource much of the manufacturing. He bought only some of Clewett's machining equipment, planning to rely on outside suppliers for the rest. But nearly every supplier either stopped working with the company or sharply raised prices. Hsu had to find new suppliers and recreate more than 50 engineering drawings from old files and physical parts. He spent much of March 2026 rebuilding the supply chain.

For about six months after the purchase, Hsu kept his corporate job part time. He initially took no salary from Clewett Engineering. He now pays himself less than he earned straight out of college because much of the profit goes back into inventory. He also handles customer inquiries, production, and shipping himself. When he takes time off, orders cannot ship, even when customers need parts for upcoming races.

Hsu aims to hire one employee, move into a dedicated workshop, and reduce his working hours to 40 a week. He also aims to take home at least $150,000 annually. Until then, he continues to run the company from his garage, describing himself as "just the candle maker in my garage."

— MIDWEEK TAPE EXTRA

The restaurant opened in 2023 and leases 1,600 square feet near Duke University and Duke Hospital. It sells through dine-in, takeout, delivery, and catering. An absentee owner runs it and is selling to focus on other businesses. The listing notes that the equipment is valued at $170,000, above the asking price.

COMING ON FRIDAY

A business that depends on its owner for daily decisions can be difficult to sell. Buyers want to see that the business can run even when the owner is away. Friday’s SMB Manual explains how to prepare for a week off, delegate responsibilities, and test whether the business can run without you.