What should I review in a manufacturing business under $10M EBITDA?
I am reviewing a manufacturing company with around $6M EBITDA. The company has strong revenue, but customer concentration and machine maintenance may be issues. As an investor, what should I focus on first?
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Buyers will look at customer concentration, backlog quality, margin stability, machine age, maintenance records, supplier dependency, inventory accuracy, working capital needs, and whether production knowledge sits with one or two people. If one customer is more than 25–30% of revenue, prepare a strong explanation.
Ask for downtime history. A plant can look profitable until you see how often machines stop and how much maintenance is deferred.
I would also review environmental permits, safety incidents, and whether the facility lease supports long-term operation. Those can change the deal quickly.