03 Apr Acquisitions Anonymous: 8M Aerospace Deal… 95% Customer Concentration. Buy or Run?
This episode features a specialized aerospace and defense parts distributor generating $8.2M in revenue and approximately $1.9M in adjusted EBITDA, with an asking price of about 4.2x earnings. The company focuses exclusively on exporting U.S.-manufactured military-grade components—such as connectors, switches, and precision hardware—to international defense and aerospace customers. Its lean operating model and compliance infrastructure allow it to maintain unusually high margins for a distributor, approaching 25%.
Key Highlights :
$8.2M revenue, $1.9M EBITDA, asking roughly 4.2x multiple
95% of revenue from five customers—extreme but typical concentration in defense supply chains
High-margin niche distribution business with strong compliance and export capabilities
Significant working capital and inventory requirements likely needed at closing
Growth depends on expanding into new countries or defense programs
