Wholesale concentration

Definition

The share of a bakery's revenue sold to other businesses, often a few accounts.

Why It Matters

Wholesale is what lifts a bakery from a counter business to a contracted producer, and it is also where the risk hides: a handful of cafes, grocers, or restaurants can be half the revenue, and none of them signed anything that survives a change of owner. Read the account list, the terms, and the history of each relationship, and price the top accounts as if one leaves in year one, because the seller's relationships are usually the glue.