Precision Manufacturing Deals: Customer Contract Assignment Done Right
Securities and M&A counsel for independent sponsors managing precision manufacturing transactions, from LOI to close to the capital markets that open up afterward.
The economics on a precision manufacturing platform deal usually hinge on a handful of structural decisions. Customer Contract Assignment is one of them.
The typical precision manufacturing platform sits at $10M to $150M EV with EBITDA in the $2.5M to $25M range. The thesis runs on platform plus tuck-in machine shops or aerospace-qualified shops. Most precision manufacturing sellers will not sign an LOI without a known capital partner already named.
How Customer Contract Assignment actually gets structured.
Identify contracts with anti-assignment clauses, especially in government and healthcare.
Plan the customer communication sequence to protect retention.
Map consent collection against the closing checklist, with material thresholds defined.
Address change-of-control notifications even where consent is not required.
In precision manufacturing, layer in AS9100 succession plan as a closing condition as part of the Customer Contract Assignment workstream.
Asking every customer for consent. You alarm customers who would have been silent.
"Customer assignment is a sales motion, not a legal one. Lead with operations, follow with paper."Jason Powell · Customer Contract Assignment
The deal is one thing. The capital that opens up after close is another.
Capital after close is where the IRR actually gets made. The right introductions at month nine through month thirty are where this practice works as hard as it does at the LOI.
Related deal pages.
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Customer Contract Assignment for Healthcare Services
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An LOI on the desk, a precision manufacturing target, and a Customer Contract Assignment question worth a real conversation.
Twenty minutes of practitioner-grade input from a securities attorney whose first move is to read the deal, not the engagement letter.