Our second-largest customer represents twelve percent of our revenue, and the relationship is managed entirely by one account executive. The buyer is pricing this in as a massive risk. How do we use our operational structure to transition this relationship and de-risk the concentration?

Question

Tyler Smith · Accepted Answer

A buyer sees a single key employee managing a major customer as a double risk. If either the customer leaves or the employee walks post-close, twelve percent of the company's value evaporates. You must de-risk this relationship by institutionalizing the customer touchpoints before you go to market.

First, use your Accountability Chart to decouple the relationship from a single person. Ensure that your account managers, service delivery teams, and leadership team members all have regular, documented touchpoints with this client. The customer should love your operating system and your brand, not just one individual.

Second, bring this client transition into your weekly Level 10 Meeting™ as a critical corporate Rock. Track the transition process on your weekly scorecard, measuring the number of multi-level client meetings held.

We recommend introducing the buyer to a broad, multi-layered account team during diligence. Show them your documented account management processes and standard operating procedures. When the buyer sees that your relationship is secured by an entire operational team using a structured management system rather than a single employee, they will have no justification to discount your multiple for key-person or customer risk.