How do I check how much of a drywall company’s work comes from one builder?

Start with a customer report, then test it. Pull a sample of invoices for the biggest builder and trace them to bank deposits. Ask whether work from related companies owned by the same group has been counted separately, since that can hide how concentrated the business really is.

Next, learn how the relationship works. Is there a written agreement, or does the builder just call when a project starts? Who at the builder picks the drywall contractor, and does that person know the seller well? Ask if the builder has been late with payments, and whether a holdback is common. Ask your lawyer about contracts that might not pass to a new owner.

Finally, think about what happens if that builder slows down or moves on. Ask what other builders the company serves and how fast it could replace the work. A housing association may be a way to see who is active in the area. Talk with your accountant about how a lender might view a heavy concentration. If a single builder does account for much of the work, ask what the seller has done to widen the base, and whether any new customers came through the seller’s own efforts or through the crew. That tells you how realistic a wider mix would be under your ownership.

Key takeaways

• Get sales by customer and confirm the top builder against bank deposits.
• Group related companies together when you measure concentration.
• Ask how the relationship was won and who holds it.