Client concentration is one of the most common objections buyers and lenders raise during a transaction, especially in the mainstream SMB market.

In this episode of The 7-Minute Takeover, we break down what high and extreme client concentration actually mean, why it can significantly impact valuation and financing, and how buyers can think about de-risking these deals.

We cover:

✔️ Why lenders get nervous when a few clients drive most of the revenue

✔️ What buyers should try to uncover before making an offer

✔️ How price, structure, and liquidity factor into mitigating risk

✔️ Earn-outs: when they help, and when they don't

✔️ What a realistic “Plan B” looks like from a lender’s perspective

The takeaway: you can’t eliminate client concentration risk, but you can understand it early, price it correctly, and structure around it.If you’re serious about buying, this is a risk you want clarity on before LOI.

Want an expert second opinion on a deal or need support on important financial documents? Book a consultation with our advisor team today: https://www.villagewellth.com/book-consultation📌

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