The Importance of Customer Diversification in Small Business Acquisitions
I’ve seen businesses look strong on paper but collapse because they relied on just a handful of customers. That’s why I always study customer diversification before buying. In this article, I explain how overdependence on a few clients creates fragility, how I evaluate customer mix in due diligence, and why diversification is one of the most important factors in sustainable acquisitions.
Why I Always Study Customer Concentration Before Buying a Business
I’ve seen too many businesses that look strong but rely on just a few customers for most of their revenue. That kind of concentration can wipe out value overnight if a single client leaves. That’s why I always study customer concentration before buying. In this article, I share how I analyze customer mix, why it matters for valuation, and the risks it can reveal during due diligence.