Customer Concentration

When a large part of revenue comes from a small number of customers. Buyers worry because losing one customer could hurt the business badly. Why it matters: This gives owners a clearer way to understand buyer questions, advisor comments, and negotiation tradeoffs during a sale process.

Also used in Common Red Flags Buyers Look For: Too much revenue from too few customers. Why it matters: Buyers may use this issue to ask for more diligence, reduce price, add protections, delay closing, or walk away.

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