Built to Sell Radio Ep 522 The difference between 4x vs.8x EBITDA, Customer Concentration Discounts, PE Re-trades with Eric Wiklendt on this special edition of Inside the Mind of an Acquirer
Nov 28, 2025
In this insightful discussion, Eric Wiklendt, Managing Director at Speyside Equity, reveals the inner workings of private equity and its impact on business valuations. He explains the crucial difference between 4x and 8x EBITDA multiples, emphasizing factors like risk and growth potential. Eric discusses how customer concentration can significantly affect pricing and shares strategies for navigating complex deals. With a focus on operational improvements, he highlights what truly makes a business a valuable platform in today's market.
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Multiple Driven By Risk And Platform Potential
- Buyers price businesses by risk and growth potential, not just revenue today.
- Firms pay 4x for risky, small or low-margin firms and 8x+ for durable, scalable platforms.
Mitigate Customer Concentration Early
- Avoid having one customer account for 20%+ of EBITDA if you want full valuation.
- Expect a 1.0–1.5x multiple haircut for meaningful customer concentration.
Big Customers Aren't Equally Risky
- Treat large corporate accounts differently based on decision centralization.
- Decentralized purchasing (plant-level) reduces concentration risk versus centralized supply chains.