Tip #91 – Does The Company Have A Customer Concentration Issue?

Losing Our Biggest CustomerIn many types of businesses, “customer concentration” can be a real concern, with a few big customers that make up a substantial portion of the company’s revenues.

Buyers, of course, are concerned that if any of those big customers leave after the sale closes, the Buyer is not getting the company’s present value.

If a company has too much customer concentration, business Seller needs to try to diversify the customer base or be willing to accept a flexible method of payment on the purchase price  based on future revenues.


Michael MarksMichael Marks, creator of Toons ‘n Tips, is a Certified Business Intermediary (CBI) and has over thirty-six years of business experience and ownership. He is a licensed real estate broker in the state of Colorado and has been selling businesses for over eighteen years. Michael has taken up cartooning as a hobby in recent years and has found that by using those skills, along with his extensive business experience, he has been able to create the Toons ‘n Tips drip marketing service for clients all over the country. Find out more about Michael at www.toonsntips.com.
2017-01-10T15:28:42+00:00January 10th, 2017|Maximizing Business Value|