Customer Concentration Structuring Help

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 Harvard University - Harvard Business School
in Alpharetta, GA, USA

2yrs ago

Customer Concentration Structuring Help

I'm looking at a large deal (a few million in EBITDA) that has about half of its revenue from one customer. Can anyone suggest some structuring solutions to this?

6 Likes

736 Views

reply by a lender 9mos ago
from California State University, Sacramento in Seattle, WA, USA

Unless it’s a prime government contract, sounds like a pass. Not every risk has an acceptable mitigation. Do you have industry expertise? Do you have the network to replace this customer or diversify. Why has the seller not diversified prior to sale? redacted

reply by a professional 9mos ago
from Hofstra University in Nassau County, NY, USA

Earn out. Look at the business as if that customer wasn't there. Then pay for the core business. Structure comp over the next few years tied to the revenue or gross profit of the 1 big customer.