What type of investors don't mind Customer Concentration in small/micro companies?

searcher profile

December 05, 2025

by a searcher in Washington, DC, USA

I'm looking at an opportunity for a tech-enabled services company in an industry I have expertise in. Non specific details: Under 10 customers 1. Top customer is around 50% revenue 2. Under $500,000 SDE (not EBITDA), on roughly 1,000,000 revenue ###-###-#### had a dip from 2023 but 2025 has strong 50% growth from 2023 4. Seller is willing to take a forgivable note/earn out for 275k 5. I believe I can structure a deal with just a 60-120k down payment 6.a. either an SBA deal with about half in SBA debt 6.b. give a higher overall consideration through seller finance (30% earn out, 10-15% down, remaining 5-6 year seller note) 7. Currently has no full time management or sales staff. What kind of investors (outside of friends and family) would be interested in this? What sort of discount would you personally feel comfortable with if you had industry experience? At what kind of multiple? Would 25,000-50,000 checks be the way to go? How difficult is it to raise additional equity post close, for additional acquisitions, to build out new but very related value-add skews to sell to the same customers, (assuming significant working capital line), and bring on management/sales layer? Would it be easier to do a raise concurrent with the purchase that is more than the necessary down payment? Don't ask why I don't put all the money in myself, it's not helpful. Just answer the questions asked in the helpful spirit of Searchfunder. I believe answers to this post will help lots of searchers and I didn't find them answered using Searchfunders search function. Thank You!
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commentor profile
Reply by a lender
from University of Missouri in Denver, CO, USA
I'd be interested in discussing this from a lending perspective, disregard if you are only looking for investor relationships
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