Customer Concentration

Member resources:

Frequent asked questions:

What is Searchfunder.com?

Searchfunder.com is an online community of searchers, investors, lenders, brokers and other professionals. Over 80% of those involved in searchfunds maintain a Searchfunder account to help them network, hire, and mentor others.

What are the benefits of membership?

In addition to accessing the most active online network of business buyers, Searchfunder licenses research that is simply not cost effective for individuals. Access over 15,000 industry reports and 50,000 transaction financials. You also get monthly credits for contact information for your company sourcing campaign with the option to purchase more at drastically discounted rates. Searchfunder has pre-purchased access from these data providers in order to empower individual buyers and to help searchers level the playing field versus private equity.

Do you have deals?

While we are primarily a buy-side network, we do have hundreds of brokers that regularly post deals to the community.

Can I find an internship on Searchfunder?

Absolutely! We have the industry's largest intern job board. If you are considering a search, the first step is to help another business buyer so you can hit the ground running.

What does it cost?

Searchfunder is a subscription service. We offer flexible monthly, annual and lifetime memberships.

Monthly

$79 / month

Annual

$19 / month

Lifetime

$432 / once

Those who maintain an account with us for over 4 continuous years are permanently added to the community without the need for a membership.

Do I need an MBA to join?

While a large number of our members come from dedicated programs at Harvard Business School, Stanford GSB, Chicago Booth, and other top programs, searching is no longer reserved for the elite. With the current abundance of dry powder in private equity, and an increasing number of business owners reaching retirement age, good deals rarely go unfunded.

Post a question, deal, job, etc...

Make a post...

Complete registration to post.

by a searcher from University of Oxford
in Adelaide SA, Australia

3yrs ago

Customer Concentration

Any tips or advice for dealing with customer concentration?

When considering an opportunity with customer concentration, what are the best risk mitigation strategies for addressing customer concentration?

2 Likes

572 Views

reply by a professional 2yrs ago
from University of Minnesota in Minneapolis, MN, USA

It can be a tough sell, but see if you can actually speak with these key customers as part of the due diligence process. Sellers might not like it (their brokers and lawyers will almost certainly hate the idea) but I've seen it be helpful in overcoming concerns around the concentration issue, in addition to mechanical levers to de-risk the deal (forgivable notes, earn-outs, etc.)

reply by a searcher 1yr ago
from Yale University in New Brunswick, NJ, USA

I've seen examples where the deal structure / payout is contingent on either (1) highly concentrated customers remaining with the company or (2) rapid reduction in concentration post acquisition.