The Quiet Threat to Business Value

October 15, 2025

Manufacturers are attractive clients, but they have one Achilles heel that often drags down their value.

New data from more than 80,000 business owners who completed their Value Builder Score Report reveals just how exposed manufacturers are to customer concentration risk. More than half (56%) of manufacturing owners say their largest customer accounts for 16% to +50% of total revenue. By contrast, in other industries, just 41% report that level of dependency — a 15-point gap.

This heavier reliance on key customers leaves manufacturers more exposed if even one account wobbles, and it’s a red flag for acquirers assessing long-term stability.

The simplest way to add value for a manufacturer is to put numbers to their dependency on one or two major accounts and then show them how that risk depresses valuation. If their largest customer makes up more than 15% of revenue, help them think through practical ways to rebalance. Each step directly lowers concentration risk and strengthens the story they can tell acquirers, leading to a safer business today and a higher multiple when it’s time to sell.

Quick Links

🎥 Recently we hosted a session with John Warrillow, author of Built to Sell, The Automatic Customer, and The Art of Selling Your Business, on how to approach manufacturing owners, one of today’s most attractive markets. Watch the replay to learn where they’re most vulnerable, how to get their attention, and what it takes to position yourself as the advisor they need.

🔧 Think of Value Builder as your advisor’s toolbox — packed with assessments, growth planning tools, and ready-to-use nurture campaigns. It’s everything you need to guide owners toward building a more valuable company, while saving you hours of prep time.

📊 Real stories. Real results. Discover how top advisors are using Value Builder to win better clients and prove their impact.

Was this email forwarded to you? If so, subscribe here.

Advisor News is brought to you by The Value Builder SystemTM, a value assessment platform that helps advisors start strategic conversations with business owners.

This Issue’s Contributors: Jason Reilly, Editor; Michael Sarkis, Director of Value Builder Analytics; Deanne Kong Ting, Director of Customer Success; Jen Chou, Senior Graphic Designer