🚩 Red Flag Story: Customer Concentration

🔎 One business had 74% of revenue from a single client. Everything else looked perfect—but this concentration was a massive risk.

The client could:

  • Leave
  • Reprice
  • Delay payment
  • Sell to a competitor

We applied a risk premium + valuation discount. Lender added contingencies. Deal still closed—with better protection.

Buyers chase opportunity. Lenders must calculate risk.