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Customer concentration

How much revenue depends on the largest customer or few customers — the classic small-business fragility.

Why it matters

Above roughly a third with one customer, lenders balk and buyers should too: you'd be buying a relationship you don't have.

Roadmap stage 6: Screen & value

Related terms

SDE (Seller's Discretionary Earnings)
EBITDA
Add-backs
CIM (Confidential Information Memorandum)

The searcher's map to buying a small business.

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