Title - A business with a diversified client base is more appealing to buyers Tags - businesssystems exitstrategy
Buyers want to see that the business is growing…
… but also that it is stable.
If most of the cash comes from a small number of accounts - that’s a big risk.
If they leave, the asset they just bought will decrease in value.
Not only that - both before and after a sale - if the few big clients are late paying for the service, it can cause major cash-flow issues.
It also puts you in a weak negotiating position with the big clients because you are needy and know that it will cause big problems if the client leaves.
[#warrillow2011builttosell]: John Warrillow (2011): Built to Sell: Creating a Business That Can Thrive Without You, Portfolio.