We are two years out from a sale and still have thirty percent of our revenue tied up in our oldest corporate client. Since we cannot dilute this concentration quickly enough, how do we prove to a buyer that our operational delivery systems make this relationship highly sticky and institutionalized?

Question

Tyler Smith · Accepted Answer

If you cannot completely eliminate customer concentration before a sale, you must prove to the buyer that the client relationship is fully institutionalized within your operational systems. Buyers discount companies with high concentration because they fear the client will leave the moment you exit. To mitigate this concern, you must remove yourself entirely from the daily communication and management of that account. Use your Accountability Chart to transition the client relationship to key Account Managers and Service Directors who possess the appropriate conative drive for detail and follow-through. Document the core processes of how this client is serviced using your EOS operating system and ensure these workflows are followed by everyone on the team. Show the buyer historical proof that your team has successfully renewed agreements and solved complex operational issues without your personal intervention. By demonstrating that the account's operational touchpoints are deeply embedded in your company's processes rather than your personal network, you can defend your valuation and ease the buyer's anxiety.