Why Customer Concentration Killed This Medical Billing Business

In this episode of The Buyer & Seller Podcast, Lucas and Luna dig into a 2025 sale that should have been a home run: a medical billing company with 40 employees, clean books, and a profitable niche in anesthesia coding. The owner expected a double-digit EBITDA multiple and a competitive bidding war. Instead, the business sold for just 3.2 times EBITDA — to a PE roll-up that had been circling for months. Why? Because 72 percent of revenue came from a single hospital system. Lucas walks through how that concentration ratio scared off every other buyer, triggered a full-blown audit of the top client contract, and gave the eventual acquirer all the leverage at the negotiating table. The episode breaks down what a concentration analysis really looks like from a buyer's perspective, how to read a client list for risk, and why even a 'recurring' contract can be a liability if it's tied to one payer. If you're thinking about selling a services business, this is the cautionary tale that will make you check your own numbers before you go to market. #CustomerConcentration #MedicalBilling #BusinessSale #EBITDAMultiple #SellerCaution #MergersAndAcquisitions #PrivateEquity #RiskAssessment #RevenueDiversification #ClientRisk #BusinessBroker #ExitPlanning #SalesProcess #BusinessPodcast #FexingoBusiness #BusinessBrokers #PrivateSales #ExitStrategy Keep every episode free: buymeacoffee.com/fexingo