We have a single customer that accounts for twenty-five percent of our gross revenue, and we cannot dilute this concentration before we go to market. How do we document and structure our daily operations to prove to a buyer that this relationship is secure and institutionalized?

Question

Tyler Smith · Accepted Answer

Since you cannot dilute the concentration before your sale, you must de-risk the relationship operationally. Buyers fear that a major customer will walk the moment the owner exits. You must prove that your relationship is embedded in your systems, not tied to your personal cell phone. First, use your Accountability Chart to move yourself entirely out of the day-to-day management of this account. Transition the primary point of contact to an account manager or operations director. Ensure this person has the GWC to run the account and lead the relationship. Second, document your standard operating procedures for servicing this client. Create a documented multi-layered communication structure where your team maps directly to their team. When a buyer sees that your junior staff interact daily with the client's operational team, and that you only step in for occasional high-level reviews, the perceived transition risk drops significantly. This institutionalization preserves your base multiple. Show the buyer that your operational processes and scorecard metrics govern the relationship, making it completely independent of your presence.