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mer or supplier?

April 26, 2017mer Supplier

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mer or supplier?

1 Answer

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Posted

Customers or suppliers are unlikely candidates unless the individual customer or supplier represents a large portion of your business. Your customers and suppliers other than the buyer candidate are competitors to the buyer candidate. Chances are that competitors will not deal with such a buyer after the sale. This reduces the value of your company to this buyer candidate. If you are in the position of having a large share of your business related to one customer or supplier, that customer or supplier is in the drivers seat when negotiating with you for the sale of your business. Your business could be worth very little if they go awaythey are in control. Most buyers will shy away from a seller candidate that has a large share of business with one customer. If you are dependent on one customer for 10% or more of your business, you need to put a plan in place to get the number below 10%.