One big customer: asset or liability when you sell?
A loyal major client feels like security. To a buyer it can look like the single biggest risk in the business.
Many successful private businesses grew on the back of one or two large customers. That loyalty is real, but buyers see it differently.
How buyers read it
If a large share of revenue comes from one customer, a buyer has to ask what happens if that customer leaves after the sale. The usual answers are a lower price, more of the price deferred, or an earn-out tied to keeping the account.
What you can do
- Win new customers in adjacent sectors, even small ones.
- Put long-standing relationships onto written contracts.
- Make sure the customer deals with more than one person in your team.