How can I tell if a machine shop depends on one aerospace customer?

Begin with the numbers by customer. Ask for sales and for open orders, and look at how the picture changed over time. A shop that is steady with one client may be comfortable, but it is also exposed. Ask your accountant to prepare a simple table so you see the pattern clearly.

Then study the relationship. Ask how the work was won, whether there is a written agreement, how orders are placed and how long the customer has stayed. Find out whether the shop holds approvals or custom tooling that make it hard to replace, or whether the work could move easily to another supplier.

Look at what the customer says. With the seller’s agreement, ask for a conversation about quality, delivery and future needs. A customer who plans to grow with the shop is a different case from one who is quietly looking around. Last, ask what the shop has done to find other work. Quotes, trial parts and new clients show effort. Your lawyer can check whether the agreements allow transfer to a new owner. Do not forget the customer’s own position, such as whether its demand could change, because that shapes your risk as well.

Key takeaways

• Get sales and open orders by customer across several periods.
• Check approvals, tooling and contracts that make the shop hard to replace.
• Ask what the owner has done to win other customers, and whether the main customer agrees to talk.