How can I tell if an AV installer relies on a few builders for work?

Ask for a job list showing the client, the source of the work and the amount billed. Group by builder. Look at both the share and the trend: is one builder growing as a share of the total, or are new ones arriving? Compare with invoices so you see money received, not only jobs quoted. Note which builders pay promptly.

Next, ask about the relationship. Is it with the company or with the owner personally? Is there an agreement, or does the work come by trust and habit? If it is the owner, plan how that trust can move to a buyer, perhaps through joint site visits. Association membership or industry events can show where else work might come from.

Finally, consider the cushion. How much other work comes from homeowners or direct enquiries? Does the installer have unfinished jobs for the builders, and who covers warranty on past work? Cash tied up in unpaid builder invoices can strain the business, so ask your accountant how to review it and what a lender might make of the concentration. Ask the installer which builders they would be sad to lose and which they would quietly prefer to drop. The answer shows how the owner weighs profit against volume and tells you where pricing may have been stretched.

Key takeaways

• Group the job list by who sent the work.
• Ask whether builders deal with the company or the owner.
• Check unpaid builder invoices and who covers past warranty work.