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Too Much Customer Concentration at the Top Can Ding Your Value in an Acquisition
By: John Wagner
Let's say you were doing business with just one or two very large customers. Your business could, quite rightly, be categorized as overly dependent on too few sources of income. The reason is simple: Any move that those two customers made, good or bad, up or down, would cause an equal reaction in the fortunes of your company, good or bad, up or down.