Advice on buying a professionals services firm with heavy client concentration?
I’m evaluating a boutique professional services firm where one Fortune 500 client accounts for ~70% of revenue. The client relationship has been in place for 25+ years, non-dependent on owners, and the company runs semi-absentee with managers handling day-to-day. For those who have looked at or owned businesses like this, how did you underwrite client concentration risk? Did you use structure (seller notes) or just pass? Would love to connect 1:1 if you’ve lived through this dynamic.