Illustrative scenario — a composite example, not a description of one specific past transaction.
July 21, 2026
The Business
A steel fabrication shop serving general contractors and industrial clients, with the majority of revenue coming from a small number of long-standing customers.
The Challenge
Customer concentration was the single biggest risk buyers flagged in early conversations — a handful of GC relationships represented the bulk of revenue, which usually depresses the multiple buyers are willing to offer.
Our Approach
Rather than downplay it, we addressed the concentration directly in the valuation and marketing materials — documenting relationship tenure (in some cases 10+ years), contract renewal history, and the shop's welding certifications that expand the type of work it can bid. This let serious buyers underwrite the risk instead of walking away at first glance.
The Outcome
The shop drew interest from both an individual buyer and a regional fabrication consolidator. It sold to the buyer who could most credibly retain the existing customer relationships, with part of the price structured as a short earn-out tied to customer retention in the first year.